BIBLIOGRAPHY RAMON, LIBERTY P....
BIBLIOGRAPHY
RAMON, LIBERTY P. APRIL 2013. Supply Chain of “Mountain Fresh”
Processed Food Product in Imugan, Santa Fe, Nueva Vizcaya. Benguet State University,
La Trinidad Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to provide more information on the market and market
potentials of the product.
Processed foods by the “Mountain Fresh” is the great source of generating income
in Barangay Imugan, Santa Fe, Nueva Vizcaya. This study was conducted to help the
Ikalahan to enhance of promotion of their products. Respondents of the study included the
processor, market outlets, traders and consumers in Santa Fe, Imugan, Bayombong, Nueva
Ecija; La Trinidad Benguet, Baguio City, and Manila.
These processed foods were sold to market outlets. The end users were the
government employees, private employees, students, tourists, and households.
Processors were increasing their volume of production during holidays and if there
are orders. Market outlets and the processor sold the most during December.
Household consumed and purchased processed foods primarily on the taste and
quality. However they did not increase their consumption they just buy every month and
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
year because of the price. Processors were affected if there was shortage of raw materials
to process, in which in turn affected the volume of processed foods they will produce.
This processed foods of Ikalahan or “Mountain Fresh” should be promoted and
advertised in order to create demand for the product and increase the production.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
INTRODUCTION
Rationale
The trustees and staff of Kalahan realized that the utilization of wild fruits was a
promising way for the population to obtain a sustainable livelihood without damage to the
forests. They established the Food Processing Center in Imugan in 1974 in order to provide
employment for the Ikalahan and to improve their economic condition. This Food
Processing Center used to produce jams, jelly, butter, vinegar and marmalades preserves
and related products using wild fruits from the forests.
These products are marketed under the “Mountain Fresh” label. This fruits are
mainly grown in the forests. It is a wild fruits from the forest and some are produce from
the farms. It is a one great source of income generating program or livelihood in Barangay
Imugan, Santa Fe, Nueva Vizcaya. Wild fruits are a unique; growing in the locality which
some of the fruits cannot be seen in other place. This wild fruit products is related to the
Indigenous people such as the “weed tree” known as dagwey, bi-holak or dikay, hibiscus,
wild berries, passion fruit, guava and santol which is processed and produced by the
Ikalahan which otherwise reffered as the kalanguya which means “forests” while the prefix
I means “from” or living in, which is a subgroup of the Ifugao tribe in the Northern part of
the Philippines. They live in villages nestled in the Caraballo Mountains located 250
kilometers North of Manila and 7 kilometers of Santa Fe Highway.
This research work looked into how far have the “Mountain Fresh” products have
moved on from the place to their different market outlets.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
Statement of the Problem
This study, intended to answer the following questions:
1. What are the products that are processed by the “Mountain Fresh”?
2. What are the sources of raw materials and other ingredients?
3. Who are the actors of the supply chain?
4. Where are the market outlets of the processed foods produced by the
“Mountain Fresh”?
5. What is the geographical flow of the product?
6. What are the costs incurred in production and marketing activities?
Objectives of the Study
This study aimed to answer the following objectives:
1. To identify the products that is being processed by the “Mountain Fresh”;
2. To identify what are the sources of raw materials and other ingredients;
3. To identify the market actors of the supply chain;
4. To identify the market outlets of the processed foods produced by the “Mountain
Fresh”;
5. To determine the geographical flow of the product; and
6. To determine the cost incurred in production and marketing practices.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
Importance of the Study
The study on supply chain would provide more information on the market and
market potentials of the product that is produced by the “Mountain Fresh” in Barangay
Imugan, Santa Fe, Nueva Vizcaya. Information can be a basis on the improvement of
production and marketing of “Mountain Fresh” products. The information gathered from
the study serves as a guide for those who are interested in the processing of wild fruits.
Furthermore, the overall result of the study provides important insights to
concerned groups involved in the processing. Supply chain study is very essential in
identifying market and market potential of a product. It is looking into what market have
not been explored and how efficient the marketing system.
Furthermore the result could be a basis for other entrepreneurs and for other
researchers who are interested on supply chain research.
Scope and Limitation of the Study
The study focused on the supply chain of process foods produced by the “Mountain
Fresh” in Barangay Imugan, Santa Fe, Nueva Vizcaya.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
REVIEW OF LITERATURE
Supply Chain
Supply chain is a complex and dynamic supply and demand network. It is a system
of organizations, people, technology, activities, information and resources involved in
moving a product or service from supplier to customer. Supply chain activities transform
natural resources, raw materials and components into a finished product that is delivered
to the end customer (Chopra, 2007).
Supply chain consists of all parties involved, directly or indirectly in fulfilling a
customer request. The supply chain includes not only the manufacturer and suppliers, but
also transporters, warehouses, retailers and even customer themselves. Within each
organization, such as manufacturer, the supply chain includes all functions involved in
receiving and fulfilling a customer request. These functions include, but are not limited to,
new product development, marketing, operations, distribution, finance, and customer
service (Chopra, 2007).
Supply Chain begins with ecological and biological and political regulation of
natural resources, followed by the human extraction of raw material, and includes several
layers of storage facilities ever decreasing size and even more remote geographical
locations, and finally reaching the consumer (Chopra, 2007).
Phases in a Supply Chain
Supply chain strategy or design. During this phase, given the marketing and pricing
plans for a product, a company decides how to structure the supply chain over the next
several years. It decides what the chains configuration will be, how resources will be
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
allocated and what processes each stage will perform. Strategic decisions made by
companies include whether to outsource or perform a supply chain function in- house, the
location and capacities of production and warehousing facilities, the products to be
manufactured or stored at various locations, the modes of transpiration to be made available
along different shipping legs, and the type of information system to be utilized. A firm
must ensure that the supply chain configuration supports its strategic objectives and
increases the supply chain surplus during this phase (Meindl, 2007).
Supply chain planning. For decisions made during this phase, the time frame
considered is quarter to a year. Therefore, the supply chains configuration determined in
the strategic phase is fixed. This configuration establishes constraints within which
planning must be done. The goal of planning is to maximize the supply chain surplus that
can be generated over the planning horizon given the constraints established during the
strategic or design phase. Planning includes making decisions regarding which markets
will be supplied from which locations, the subcontracting of manufacturing, the inventory
policies to be followed, the timing, and size of marketing and price promotions. Planning
establishes parameters within which a supply chain will function over a specified period of
time (Meindl, 2007).
Supply chain operation. During this phase companies make decisions regarding
individual customer’s orders .At the operation level, supply chain configuration is
considered fixed and planning policies are already defined. The goal of supply chain
operations is to handle incoming customer’s orders in the best possible manner. During
this phase, firms allocate inventory or production to individual orders, set a date that an
order is to filled, generate pick lists at a warehouse, and allocate an order to a particular
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
shipping mode and shipment, set delivery of trucks, and the place replenishment orders.
Because operation decisions are being made in the short term (minutes, hours, or days),
there is less uncertainty about demand information. Given the constraints established by
the configuration and planning policies, the goal during the operation phase is to exploit
reduction of uncertainty and optimize performance. The design, planning and operation
( Meindl, 2007).
Supply Chain Management
Supply chain management is the management of a network of interconnected
businesses involved in the provision of product and service packages required by the end
customers in a supply chain. Supply chain management spans all movement and storage of
raw materials, work-in process inventory, and finished goods from point of origin to point
of consumption (Jacoby, 2009).
Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the provision of product and service packages
required by the end customers in a supply chain. Supply chain management spans all
movement and storage of raw materials, work-in-process inventory, and finished goods
from point of origin to point of consumption (Halldorsson, 2007).
The supply chain encompasses every effort involved in producing and delivering
a final product or service, from the supplies supplier to the customer’s customer. Supply
chain management includes managing supply and demand, sourcing raw materials and
parts, manufacturing and assembly, warehousing and inventory tracking, order entry and
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
order management, distribution across all channels, and to the customer (Richardson,
2004).
It is the set of approaches utilized to efficiently integrate suppliers, manufacturers,
warehouses, and stores; so that the merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in order to minimize system wide
costs while satisfying service level requirements (McGraw, 2002).
First supply chain management takes into consideration every facility that has
impact on cost and plays a role in the product conform to customer requirements, from
supplier and manufacturing facilities through warehouses and distribution centers to
retailers and stores. Indeed, some supply chain analysis, it is necessary to account for the
suppliers’ suppliers and the customers’ customers because they have an impact to the
supply chain performance (McGraw, 2002).
Second, the objective of supply chain management is to be efficient and cost
effective across the entire system; total system wide costs, from transportation and
distribution to inventories of raw materials, work in process, and finished goods, are to be
minimized. Thus the emphasis is not simply minimizing transportation cost or reducing
inventories but, rather, on taking a systems approach to supply chain management
(McGraw, 2002).
Finally, because supply chain management revolves around efficient integration of
suppliers, manufacturers, warehouses, and stores. It encompasses the firm activities at
many levels, from the strategic level through the tactical to the operational level (McGraw,
2002).
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Barangay Imugan, Santa Fe, Nueva Vizcaya where
the processing of foods is located and to the different market center. It was conducted from
December 2012 to January 2013.
Respondents of the Study
The consumer’s processors and other market actors were the respondents of the
study. Complete enumeration was employed for the processor. Random sampling was
employed in the selective market actors and consumers as respondents.
Data Gathering Procedure
The data were collected through a semi structured survey questionnaire
supplemented with personal interview.
Data Gathered
The data gathered includes list of products produced by “Mountain Fresh”,
sources of raw materials and other ingredients, the production cost, market outlet, market
terms, conditions prices and the geographical flow of products.
Data Analysis
The data gathered were tabulated and analyze according to the objectives and
frequency analysis was in data analysis.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
RESULTS AND DISCUSSION
Overview of the Mountain Fresh Processing
The Ikalahan Educational Foundation or “Mountain Fresh” started processing fruits
in the year 1980’s through researching from the internet until they discovered that wild
fruits can be processed into jams, jellies, juices and others. Their first products were guava
jelly, guava jam and guava butter, encouraged by the favorable acceptance of their first
products, the KEF started processing other products. These products include dagwey
preserves, dagwey jelly, jam and spread, dikay jelly, ginger tea and jelly, passion fruit jelly
and juice, hibiscus jelly, and santol jam, jelly and spraed where their products are marketed
under the “Mountain Fresh” label. The term of operation is corporation and in promoting
their product they are participating in a trade fair. They had been involved in processing
for twenty two years and start selling in the year 1981 until now and their main products
are the jams and jellies.
Profile of Respondents
Table 1 presents the profile of the respondents (processors, traders, market outlets
and consumers) as to their age, gender, household size, household income, educational
attainment, ethnic affiliation, religious affiliation and occupation.
Age. The processor is 55 years of age. Thirteen of the consumers is within the age
bracket of 15-20 years old with 31.25%, 7 were in the age bracket of 30-50 years old with
22%, six in the age bracket of 40-50 years old (18%), five were in the age bracket of 20-
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
30 years old and four were in the age bracket of 50-61 years old (13%). Result shows that
most of the respondents are young to middle age.
Gender. Table 1 shows that in the market outlet four (80%) were female, twenty
three (72%) consumers were female and in the trader one (50%) were female and male.
This shows that in the market outlet and consumer’s female outnumbered male.
Household size. Table 1 shows that majority of the respondents have a 4-6 members
of every family (44%), twelve (37.5%) has a 2-4 members of every family, six (19%) has
a 6-8 members of every family.
Household income. Majority of the respondent’s income range to 1,000-4,000
pesos seventeen (53.13%), ten (31.25%) range to 4,000-8,000 pesos and few of them range
to 8,000-12,000.
Ethnic affiliation. Table 1 shows that 19 consumers were kalanguya with 59%, 13
(41%) were ibaloi, in market outlet two were ilocano and tagalog with 40% and the other
respondents were kankana-ey and kalahan.
Religious affiliation. Table 1 show that majority of the consumers were UCCP 21
with 66%, market outlet were Roman Catholic with (80%).
Educational attainment. Table 1 shows that the consumers reached college level
with 47% and college graduate 10 (31%), in the market outlet and traders majority of
them were college graduate (100%).
Occupation. Most of the respondents are still students 10 (32%), and in market
outlets are private employee (60%) and the other consumers were nun laborer, farming,
businessman/women and housekeeper as shown in table 1.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted in Imugan, Santa Fe, Nueva Vizcaya to determine the
sources of raw materials and other ingredients, the actors of supply chain, the market
outlets, geographical flow of the product, costs incurred in the products and marketing
activities and the income derived from the production and marketing.
The “Mountain Fresh” or Ikalahan Educational Foundation is a corporation that is
located in Imugan, Santa Fe, Nueva Vizcaya which produces different kinds of processed
fruits such as guava jam, jelly and juice, dagwey prones, jelly and jam, bignay juice, jam
and jelly, santol jam,jelly and spread, hibiscus jelly, dikay/biho-lak jelly and passion fruit
juices.
The actors in the supply chain were the processors, tradres, market outlets and the
consumers.
Raw materials of “Mountain Fresh” (fruits), are source out from their nearby
barangay, namely Imugan, Malico, Baracbec, Unib, Sta Rosa, Baeneng and San Nicolas
and from the province of Pangasinan and Quirino (fruits) and in Manila forth bottles, and
plastic bottles. Their other ingredients are citric acid, pectin and spring water.
The mode of procurement of market outlets and traders were delivered by the
processor and picked-up by the traders in the processing area.
Product outlets were Full of Grace, Non Timber Forest Product, Life Giving
(diosis), Mountain Grown and BSU Marketing Center.
Consumers buy directly from processor or directly from market outlets.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
The problems encountered by the processors were lack of equipment, raw materials,
input materials and shortage of raw materials (fruits) which affect their production, lack of
workers and the seasonality of the fruits.
The problems encountered by the market outlets were high price, limited demand
due to high price, not familiar with the fruits that are used in the product, and low sales
turnover, shorter life span of some products.
Conclusions
Based on the findings of the study the following conclusions were made:
1. There are many kinds of wild fruits that is being processed and produced by the
Ikalahan or “Mountain Fresh”. These products are not known by consumers, thus low sales
turn over. Only the known fruits like guava and santol have faster sales turn over; and
2. Market of products is limited because they are unique made of indigenous fruits.
Recommendations
“Mountain Fresh” should develop a strategy to promote product to create demand
for this products especially the indigenous fruits.
Products are of good quality but need to explore market potentials and position the
product in the market based on how they would like their products to be known.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
LITERATURE CITED
ANONYMOUS. 2012, Retrieved August 24, 2012, from http:// www.supply chain
zjipower.com.
ARMSTRONG, G. 2006. Marketing. Prentice hall, Inc. Upper Saddle River New Jersey
7th edition. Pp.40-45.
BROWN, L. 2006. Marketing. Pearson Education Australia/ Prentice Hall. 7th edition.
P.17.
CHOPRA, S. 2007. Supply Chain Management and Demand. Published by McGraw-
Hill/Irwin, a business unit of the McGraw-Hill companies, Inc., 1221 Avenue of
the Americas, New York, NY 10020. Copyright 2007 by the McGraw-Hill
companies, Inc. Pp.200-233.
HALLDORSSON, A. 2007. Complementary Theories to Supply Chain Management.
Supply Chain Management: An International Journal, Volume 12 Issue 4. Pp. 284-
296.
JACOBY, D. 2009. Guide to Supply Chain Management: How Getting it Right Boosts
Corporate Performance (The Economist Books), Bloomberg Press; First Edition.
KOTLER, P. 1989, 2006. Marketing Management. Prentice hall. Inc. Englewood Cliffs.
N.J., USA. P.5.
KURTZ, D. 2010. Contemporary Marketing Mason. OH South western Cengage Learning.
P.15.
LAUDAN, R. 2010. In “Praise of Fast Food”. UTNE Reader. Retrieved September 24,
2010.
McGRAW, H. 2002. “What is Supply Chain Management”. Retrieved October 3, 2011,
from highered. mcgraw.hill.com.
MEINDL, P. 2007.Supply Chain Management: Strategy, Planning and Operations,
Prentice Hall. Pp.45-47.
NAGUMEY, A. 2006 Supply Chain Network Economics: Dynamics of prices flows and
profits, from http://supply chain.com.
RICHARDSON, T.G. 2004. Supply Chain Management. Retrieved August 30.2011, from
http://wikipower.com.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
SHAPIRO, L. 2005. Something From The Oven: Reinventing Dinner in 1950’s America.
New York: Penguin.
WEILAND, A. 2007. Supply-Chain-Management in Stürmischen Zeiten. Berlin. Pp. 120-
122.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
RAMON, LIBERTY P. APRIL 2013. Supply Chain of “Mountain Fresh”
Processed Food Product in Imugan, Santa Fe, Nueva Vizcaya. Benguet State University,
La Trinidad Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to provide more information on the market and market
potentials of the product.
Processed foods by the “Mountain Fresh” is the great source of generating income
in Barangay Imugan, Santa Fe, Nueva Vizcaya. This study was conducted to help the
Ikalahan to enhance of promotion of their products. Respondents of the study included the
processor, market outlets, traders and consumers in Santa Fe, Imugan, Bayombong, Nueva
Ecija; La Trinidad Benguet, Baguio City, and Manila.
These processed foods were sold to market outlets. The end users were the
government employees, private employees, students, tourists, and households.
Processors were increasing their volume of production during holidays and if there
are orders. Market outlets and the processor sold the most during December.
Household consumed and purchased processed foods primarily on the taste and
quality. However they did not increase their consumption they just buy every month and
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
year because of the price. Processors were affected if there was shortage of raw materials
to process, in which in turn affected the volume of processed foods they will produce.
This processed foods of Ikalahan or “Mountain Fresh” should be promoted and
advertised in order to create demand for the product and increase the production.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
INTRODUCTION
Rationale
The trustees and staff of Kalahan realized that the utilization of wild fruits was a
promising way for the population to obtain a sustainable livelihood without damage to the
forests. They established the Food Processing Center in Imugan in 1974 in order to provide
employment for the Ikalahan and to improve their economic condition. This Food
Processing Center used to produce jams, jelly, butter, vinegar and marmalades preserves
and related products using wild fruits from the forests.
These products are marketed under the “Mountain Fresh” label. This fruits are
mainly grown in the forests. It is a wild fruits from the forest and some are produce from
the farms. It is a one great source of income generating program or livelihood in Barangay
Imugan, Santa Fe, Nueva Vizcaya. Wild fruits are a unique; growing in the locality which
some of the fruits cannot be seen in other place. This wild fruit products is related to the
Indigenous people such as the “weed tree” known as dagwey, bi-holak or dikay, hibiscus,
wild berries, passion fruit, guava and santol which is processed and produced by the
Ikalahan which otherwise reffered as the kalanguya which means “forests” while the prefix
I means “from” or living in, which is a subgroup of the Ifugao tribe in the Northern part of
the Philippines. They live in villages nestled in the Caraballo Mountains located 250
kilometers North of Manila and 7 kilometers of Santa Fe Highway.
This research work looked into how far have the “Mountain Fresh” products have
moved on from the place to their different market outlets.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
Statement of the Problem
This study, intended to answer the following questions:
1. What are the products that are processed by the “Mountain Fresh”?
2. What are the sources of raw materials and other ingredients?
3. Who are the actors of the supply chain?
4. Where are the market outlets of the processed foods produced by the
“Mountain Fresh”?
5. What is the geographical flow of the product?
6. What are the costs incurred in production and marketing activities?
Objectives of the Study
This study aimed to answer the following objectives:
1. To identify the products that is being processed by the “Mountain Fresh”;
2. To identify what are the sources of raw materials and other ingredients;
3. To identify the market actors of the supply chain;
4. To identify the market outlets of the processed foods produced by the “Mountain
Fresh”;
5. To determine the geographical flow of the product; and
6. To determine the cost incurred in production and marketing practices.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
Importance of the Study
The study on supply chain would provide more information on the market and
market potentials of the product that is produced by the “Mountain Fresh” in Barangay
Imugan, Santa Fe, Nueva Vizcaya. Information can be a basis on the improvement of
production and marketing of “Mountain Fresh” products. The information gathered from
the study serves as a guide for those who are interested in the processing of wild fruits.
Furthermore, the overall result of the study provides important insights to
concerned groups involved in the processing. Supply chain study is very essential in
identifying market and market potential of a product. It is looking into what market have
not been explored and how efficient the marketing system.
Furthermore the result could be a basis for other entrepreneurs and for other
researchers who are interested on supply chain research.
Scope and Limitation of the Study
The study focused on the supply chain of process foods produced by the “Mountain
Fresh” in Barangay Imugan, Santa Fe, Nueva Vizcaya.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
REVIEW OF LITERATURE
Supply Chain
Supply chain is a complex and dynamic supply and demand network. It is a system
of organizations, people, technology, activities, information and resources involved in
moving a product or service from supplier to customer. Supply chain activities transform
natural resources, raw materials and components into a finished product that is delivered
to the end customer (Chopra, 2007).
Supply chain consists of all parties involved, directly or indirectly in fulfilling a
customer request. The supply chain includes not only the manufacturer and suppliers, but
also transporters, warehouses, retailers and even customer themselves. Within each
organization, such as manufacturer, the supply chain includes all functions involved in
receiving and fulfilling a customer request. These functions include, but are not limited to,
new product development, marketing, operations, distribution, finance, and customer
service (Chopra, 2007).
Supply Chain begins with ecological and biological and political regulation of
natural resources, followed by the human extraction of raw material, and includes several
layers of storage facilities ever decreasing size and even more remote geographical
locations, and finally reaching the consumer (Chopra, 2007).
Phases in a Supply Chain
Supply chain strategy or design. During this phase, given the marketing and pricing
plans for a product, a company decides how to structure the supply chain over the next
several years. It decides what the chains configuration will be, how resources will be
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
allocated and what processes each stage will perform. Strategic decisions made by
companies include whether to outsource or perform a supply chain function in- house, the
location and capacities of production and warehousing facilities, the products to be
manufactured or stored at various locations, the modes of transpiration to be made available
along different shipping legs, and the type of information system to be utilized. A firm
must ensure that the supply chain configuration supports its strategic objectives and
increases the supply chain surplus during this phase (Meindl, 2007).
Supply chain planning. For decisions made during this phase, the time frame
considered is quarter to a year. Therefore, the supply chains configuration determined in
the strategic phase is fixed. This configuration establishes constraints within which
planning must be done. The goal of planning is to maximize the supply chain surplus that
can be generated over the planning horizon given the constraints established during the
strategic or design phase. Planning includes making decisions regarding which markets
will be supplied from which locations, the subcontracting of manufacturing, the inventory
policies to be followed, the timing, and size of marketing and price promotions. Planning
establishes parameters within which a supply chain will function over a specified period of
time (Meindl, 2007).
Supply chain operation. During this phase companies make decisions regarding
individual customer’s orders .At the operation level, supply chain configuration is
considered fixed and planning policies are already defined. The goal of supply chain
operations is to handle incoming customer’s orders in the best possible manner. During
this phase, firms allocate inventory or production to individual orders, set a date that an
order is to filled, generate pick lists at a warehouse, and allocate an order to a particular
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
shipping mode and shipment, set delivery of trucks, and the place replenishment orders.
Because operation decisions are being made in the short term (minutes, hours, or days),
there is less uncertainty about demand information. Given the constraints established by
the configuration and planning policies, the goal during the operation phase is to exploit
reduction of uncertainty and optimize performance. The design, planning and operation
( Meindl, 2007).
Supply Chain Management
Supply chain management is the management of a network of interconnected
businesses involved in the provision of product and service packages required by the end
customers in a supply chain. Supply chain management spans all movement and storage of
raw materials, work-in process inventory, and finished goods from point of origin to point
of consumption (Jacoby, 2009).
Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the provision of product and service packages
required by the end customers in a supply chain. Supply chain management spans all
movement and storage of raw materials, work-in-process inventory, and finished goods
from point of origin to point of consumption (Halldorsson, 2007).
The supply chain encompasses every effort involved in producing and delivering
a final product or service, from the supplies supplier to the customer’s customer. Supply
chain management includes managing supply and demand, sourcing raw materials and
parts, manufacturing and assembly, warehousing and inventory tracking, order entry and
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
order management, distribution across all channels, and to the customer (Richardson,
2004).
It is the set of approaches utilized to efficiently integrate suppliers, manufacturers,
warehouses, and stores; so that the merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in order to minimize system wide
costs while satisfying service level requirements (McGraw, 2002).
First supply chain management takes into consideration every facility that has
impact on cost and plays a role in the product conform to customer requirements, from
supplier and manufacturing facilities through warehouses and distribution centers to
retailers and stores. Indeed, some supply chain analysis, it is necessary to account for the
suppliers’ suppliers and the customers’ customers because they have an impact to the
supply chain performance (McGraw, 2002).
Second, the objective of supply chain management is to be efficient and cost
effective across the entire system; total system wide costs, from transportation and
distribution to inventories of raw materials, work in process, and finished goods, are to be
minimized. Thus the emphasis is not simply minimizing transportation cost or reducing
inventories but, rather, on taking a systems approach to supply chain management
(McGraw, 2002).
Finally, because supply chain management revolves around efficient integration of
suppliers, manufacturers, warehouses, and stores. It encompasses the firm activities at
many levels, from the strategic level through the tactical to the operational level (McGraw,
2002).
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Barangay Imugan, Santa Fe, Nueva Vizcaya where
the processing of foods is located and to the different market center. It was conducted from
December 2012 to January 2013.
Respondents of the Study
The consumer’s processors and other market actors were the respondents of the
study. Complete enumeration was employed for the processor. Random sampling was
employed in the selective market actors and consumers as respondents.
Data Gathering Procedure
The data were collected through a semi structured survey questionnaire
supplemented with personal interview.
Data Gathered
The data gathered includes list of products produced by “Mountain Fresh”,
sources of raw materials and other ingredients, the production cost, market outlet, market
terms, conditions prices and the geographical flow of products.
Data Analysis
The data gathered were tabulated and analyze according to the objectives and
frequency analysis was in data analysis.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
RESULTS AND DISCUSSION
Overview of the Mountain Fresh Processing
The Ikalahan Educational Foundation or “Mountain Fresh” started processing fruits
in the year 1980’s through researching from the internet until they discovered that wild
fruits can be processed into jams, jellies, juices and others. Their first products were guava
jelly, guava jam and guava butter, encouraged by the favorable acceptance of their first
products, the KEF started processing other products. These products include dagwey
preserves, dagwey jelly, jam and spread, dikay jelly, ginger tea and jelly, passion fruit jelly
and juice, hibiscus jelly, and santol jam, jelly and spraed where their products are marketed
under the “Mountain Fresh” label. The term of operation is corporation and in promoting
their product they are participating in a trade fair. They had been involved in processing
for twenty two years and start selling in the year 1981 until now and their main products
are the jams and jellies.
Profile of Respondents
Table 1 presents the profile of the respondents (processors, traders, market outlets
and consumers) as to their age, gender, household size, household income, educational
attainment, ethnic affiliation, religious affiliation and occupation.
Age. The processor is 55 years of age. Thirteen of the consumers is within the age
bracket of 15-20 years old with 31.25%, 7 were in the age bracket of 30-50 years old with
22%, six in the age bracket of 40-50 years old (18%), five were in the age bracket of 20-
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
30 years old and four were in the age bracket of 50-61 years old (13%). Result shows that
most of the respondents are young to middle age.
Gender. Table 1 shows that in the market outlet four (80%) were female, twenty
three (72%) consumers were female and in the trader one (50%) were female and male.
This shows that in the market outlet and consumer’s female outnumbered male.
Household size. Table 1 shows that majority of the respondents have a 4-6 members
of every family (44%), twelve (37.5%) has a 2-4 members of every family, six (19%) has
a 6-8 members of every family.
Household income. Majority of the respondent’s income range to 1,000-4,000
pesos seventeen (53.13%), ten (31.25%) range to 4,000-8,000 pesos and few of them range
to 8,000-12,000.
Ethnic affiliation. Table 1 shows that 19 consumers were kalanguya with 59%, 13
(41%) were ibaloi, in market outlet two were ilocano and tagalog with 40% and the other
respondents were kankana-ey and kalahan.
Religious affiliation. Table 1 show that majority of the consumers were UCCP 21
with 66%, market outlet were Roman Catholic with (80%).
Educational attainment. Table 1 shows that the consumers reached college level
with 47% and college graduate 10 (31%), in the market outlet and traders majority of
them were college graduate (100%).
Occupation. Most of the respondents are still students 10 (32%), and in market
outlets are private employee (60%) and the other consumers were nun laborer, farming,
businessman/women and housekeeper as shown in table 1.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted in Imugan, Santa Fe, Nueva Vizcaya to determine the
sources of raw materials and other ingredients, the actors of supply chain, the market
outlets, geographical flow of the product, costs incurred in the products and marketing
activities and the income derived from the production and marketing.
The “Mountain Fresh” or Ikalahan Educational Foundation is a corporation that is
located in Imugan, Santa Fe, Nueva Vizcaya which produces different kinds of processed
fruits such as guava jam, jelly and juice, dagwey prones, jelly and jam, bignay juice, jam
and jelly, santol jam,jelly and spread, hibiscus jelly, dikay/biho-lak jelly and passion fruit
juices.
The actors in the supply chain were the processors, tradres, market outlets and the
consumers.
Raw materials of “Mountain Fresh” (fruits), are source out from their nearby
barangay, namely Imugan, Malico, Baracbec, Unib, Sta Rosa, Baeneng and San Nicolas
and from the province of Pangasinan and Quirino (fruits) and in Manila forth bottles, and
plastic bottles. Their other ingredients are citric acid, pectin and spring water.
The mode of procurement of market outlets and traders were delivered by the
processor and picked-up by the traders in the processing area.
Product outlets were Full of Grace, Non Timber Forest Product, Life Giving
(diosis), Mountain Grown and BSU Marketing Center.
Consumers buy directly from processor or directly from market outlets.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
The problems encountered by the processors were lack of equipment, raw materials,
input materials and shortage of raw materials (fruits) which affect their production, lack of
workers and the seasonality of the fruits.
The problems encountered by the market outlets were high price, limited demand
due to high price, not familiar with the fruits that are used in the product, and low sales
turnover, shorter life span of some products.
Conclusions
Based on the findings of the study the following conclusions were made:
1. There are many kinds of wild fruits that is being processed and produced by the
Ikalahan or “Mountain Fresh”. These products are not known by consumers, thus low sales
turn over. Only the known fruits like guava and santol have faster sales turn over; and
2. Market of products is limited because they are unique made of indigenous fruits.
Recommendations
“Mountain Fresh” should develop a strategy to promote product to create demand
for this products especially the indigenous fruits.
Products are of good quality but need to explore market potentials and position the
product in the market based on how they would like their products to be known.
Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013
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Supply Chain of “Mountain Fresh” Processed Food Product in Imugan, Santa Fe, Nueva
Vizcaya | RAMON, LIBERTY P. APRIL 2013