Topic > The First Part of the Supply Chain for General Mills Inc.

There are many working parts within a company that produces consumer goods. Departments like sales, finance, accounting and marketing are at the forefront of the minds of consumers and business professionals. However, there is one aspect of the business that drives any successful manufacturer, and that is a well-managed supply chain. The supply chain is the coordination of activities within a production process that begins with the procurement of raw materials and ends with consumer satisfaction. This article will focus on the first part of the supply chain for General Mills Inc., the sourcing of one of its most sought after ingredients, raw cocoa. Ethics in Sourcing, the beginning of a successful supply chain strategy begins with an organizational culture that promotes ethics from within. “From buying to selling and every aspect of a business in between, if there is a strong ethical culture a company can better avoid conflicts of interest, lack of professional competence, improper mutual agreements between buyers and sellers, and ethics within the supply chain. supply” ( Heizer 448). Many different factors go into sourcing raw cocoa, and since General Mills does not purchase directly from farmers, it is imperative that thorough manufacturing research into the origins of ingredients adheres to good standards and ethical practices. "Like many priority commodities around the world, cocoa production is not always pleasant, and in places like Africa (where 40% of the world's cocoa trade originates) they are equated to the trade in blood diamonds, plus commonly known as conflict diamonds” (Riggs). General Mills has implemented what it calls a Supplier Code of Conduct and does not condone its use... middle of paper... This highlights the need to evaluate where suppliers are located and their environment. Supplier Evaluation, is It is important that General Mills establishes that “a potential supplier is or may be a producer certified by the International Cocoa Organization (ICCO)” (Anga). If the quality of suppliers is poor, the rest of the supply chain will suffer and efforts will be wasted. General Mills must then choose how to integrate the supplier into its system, and the buyer must ensure that the supplier values ​​quality. “General Mills will benefit from a cost-based negotiation strategy, as it requires the supplier to show its books to the buyer. From there the buyer will draft contracts that specify the terms, limits and conditions of the relationship so that each party involved shares equal benefits and risks” (Heizer 443).