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Tea Company

Operations Management: Technology in Supply Chain Management. Tea Company. Group 13 Courtney Keller Jason Rozet Laura Bugbee. Company Background. Privately-held Headquartered in Tigard, Oregon

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Tea Company

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  1. Operations Management: Technology in Supply Chain Management Tea Company Group 13 Courtney Keller Jason Rozet Laura Bugbee

  2. Company Background • Privately-held • Headquartered in Tigard, Oregon • Originally operated out of an old Portland Victorian style house, supplying loose herbal teas and bulk herbs to natural food stores. • 1972: broadened its focus to include bagged teas, then began to sell a full line of traditional, specialty blend and herbal teas directly to fine restaurants and through a mail order catalog to consumers. • 1993: acquired by Yamamotoyama Tea Company

  3. Stash Today • Enjoying steady growth • Has become one of the largest specialty tea companies in the United States • Products available through foodservice, grocery stores, tea and coffee shops, club stores, mass merchandisers, natural foods stores, mail order and the Internet. • Has a mail order catalog with more than 200 teas.

  4. Purpose The purpose of this presentation is to discuss the global expansion of niche teas, specifically Stash’s Indian product line, and the implications advancements in technology have on small scale growers.

  5. Why this is important; Assumptions • Technology has allowed small scale growers to keep up and compete with larger companies. • This provides an increase in variety in the tea market • Globalization is often the catalyst for localized competition in international markets

  6. Contrasting Views • Advancements in technology have allowed small scale growers to compete with larger growers, however it has resulted in poor labor conditions for these workers. • Initial increase in technology has a detrimental impact on the standard of living. • Technology and regulation can be used to reverse this trend.

  7. Project Objectives and Hypothesis • The shares of small-scale tea growers will continue to increase in the expanding global market • This can be attributed in part to advances in technology and their impact on the role of small-scale growers and independent farmers

  8. Investigative Questions • As technology becomes more widespread, will small growers become more global? • Does the increase in technology affect human welfare in the industry?

  9. Project Scope • Focus on small growers in India, where the Indian product line of Stash Tea is produced

  10. Criteria for Development of Project Scope • Population: Small-scale growers in India • (approximately 25% market share total) • Industry: Tea SIC Industry Descriptions5149 - Groceries and Related Products, Not Elsewhere Classified2099 - Food Preparations, Not Elsewhere ClassifiedNAICS Industry Descriptions424490 - Other Grocery and Related Product Merchant Wholesalers311423 - Dried and Dehydrated Food Manufacturing

  11. Expected Outcomes • Increase in available teas from small growers internationally • Wages and standard of living for smaller tea growers will increase

  12. Measuring • Increasing wages to a living wage by 2012 • Progression to 50% of teas being fair-trade certified

  13. Costs and Personnel • Currently, labor is approx. 3% of the cost of tea • We believe a 5% increase in the price of tea would cover additional wages and regulatory personnel to certify fair trade

  14. Conclusion • Advances in technology allow small-scale tea growers to remain competitive with large-scale growers in a global market. • Advances in technology also allow for certainty of reasonable working conditions within the industry (i.e. living wage) • The beginning of the supply chain can determine the quality of the end product

  15. References • Business & Company Resource Center • De Regil Castilla, Álvaro. "India's Living Wage Gap." 2010. PDF file. • Flo-Cert . N.p., 20 July 2010. Web. 8 Dec. 2010. <http://www.flo-cert.net/flo-cert/main.php?lg=en>. • "The Tea Market- A Background Study." 26 June 2002. PDF file. • http://www.stashtea.com • "Small Tea Growers Geared Up for a Sustainable." Centre for Education and    Communication (CEC). Centre for Education and Communication, 21 Mar. 2009.    Web. 7 Dec. 2010. <http://tinyurl.com/26ng3vq>. • http://www.corbisimages.com/Enlargement/IH165130.html • http://www.corbisimages.com/Enlargement/HU038072.html • http://www.life.com/image/52477038

  16. Thank You • Questions? • Comments? • Compliments?

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