Case
Teaching Notes
Supplementary Resources
Abstract
This case focuses on the problems and challenges on the supply chain management that Mellower Coffee has encountered in its development, and how to create value for the company through supply chain management.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1. Mellower Coffee Roasting Factory
Mellower Coffee Roasting Factory is located in Jinshan, Shanghai, an hour’s drive from downtown. Annual production of roasted beans reaches 3,000 metric tons, with a yearly output value of CNY 300 million. The first phase construction has been completed, with a possible production of 1,000 tons. It is the only self-developed fully automatic roasting production line in China, with a raw material processing and delivery system from Brazil, first-class equipment and technologies from Germany Probat, leading packing machine for roasted beans, drip and bag coffee from Japan FUSO.
Independent Brand Products Account for 22%
With the expansion of the market, it is estimated that 80% of the production capacity will be independent brand production in 2018.
Exports Accounted for 58% of Products
In order to ensure efficient operation of the factory, export sales became the main business of the company, relying on the trade resources at the early stage. With the growth of brand, the company gradually reduced export volume and enlarged production capacity.
OEM Accounts for 20%
Mainly target renowned brands, such as Pacific Coffee, Metro, Watson, Family Mart and products of high-end fashion crossover cooperation, etc.
Roasting Factory, Jinshan, Shang
Exhibit 2: Mellower Coffee Stores
Decorations inside and outside of Mellower stores
Mellower Training Course
Exhibit 3: Creative products of Mellower Coffee
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
