Professional Documents
Culture Documents
Agenda
About CNB Supply Chain Summing Up Recommendations Q&A
About CNB
History Strategy
Traceability / Quality Third Party Certification Fixed Price Model
Supply Chain
Commodity Beef Vs. CNB
Difficulties/Obstacles for CNB Sustainability Rancher Hidden costs (e.g. Animal treatment, Environmental cost) Cannot ensure the diet quality in BNW Co-op Rely on one large customer (Whole Foods) Traceability ends at the Packer Consumers Third party certification?
External Parties
Third Party
e. g. Certifying Agencies
Competitors
Other Ranchers
Customers
Market
Third Party
Food Alliance
Sustainable business practices CNB and Fulton
Step 1 prohibits cages and crates. Step 2 requires environmental enrichment for indoor production systems; Step 3, outdoor access; Step 4, pasture-based production; Step 5, an animal-centered approach with all physical alterations prohibited; and, finally, Step 5+, the entire life of the animal spent on an integrated farm.
Competitors
Panorama
All organic and grass-fed beef Sit down dinner (rancher with consumers)
Niman Ranch
Own custom butchering plant and feedlots Sell beef online
Customers of CNB
Wholefoods
Burgerville New Seasons grocery store
Wholefoods
Worlds largest natural foods store
CNBs Summary
Differentiation
Challenges
Differentiation
High Product Quality No hormones or antibiotics Different diet patterns at the feedlots Reliable Certification from Third Party organizations Effective Product Traceability CNB ranchers own products throughout supply chain Ear tag (from birth to plate?) Carcass data provided to CNB ranchers to make improvements Pricing Model Fixed price o Remove price fluctuations and secures steady cash flow o Use cost of production and cost plus method to determine price o Commission and bonus plan incentives
Challenges
Customer Perception and Loyalty
Continued Product differentiation and branding o End-consumer has less knowledge about the food supply chain Animal Welfare Concerns Online selling(costs and feasibility)
Marketing Strategy
Recommendations
Short Term
Increase frequency of consumer interactions Do not increase rate of entering Grass-fed market
Long Term
Email list for news letter (includes web link) Online sales (AB Foods already set-up) Implement communication capabilities amongst partner organization (transparency) Determine feasibility of Grass-fed market penetration Do some research on the carbon-footprint to reduce impact on global warming