Silk is an American brand of daily-substitute products owned by Danone North America, formerly known as WhiteWave Foods. Some of the popular products produced by SILK Company are silked soy milk, specialty soy, and coconut milk. The firm’s stability is majorly based on reliable sources of raw materials, an effective supply chain, and a customized production process. Besides, the firm has deployed an environmentally friendly process in most of its operations.
Raw Materials
The corporation uses several raw materials for primary production. Some of the outsourced raw materials include organic and conventional raw materials, sweeteners, almonds, and butterfat (Burcunoyan 25). SILK Company procures approximately 93% of the raw organic milk from a network of more than 600 farmers who are strategically positioned in the United States (“United States Securities”). Similarly, dairy farms such as those in Kennedyville and Maryland contribute to the firm’s raw materials (Richards). That way, the business rarely runs short of unprocessed materials.
Profit, Sales, and Volume of SILK
Based on the current distribution, SILK sells its products in over 50 countries worldwide. Most of the company’s products are sold in North America and Europe through direct sales, independent brokers, and distributors (“DANONE: strong results”). Consumers of SILK products outside the United States account for approximately 20 % of the firm’s net sales (Lucas). 2012 had the lowest record of sales of 18.8% (Patil). Nonetheless, the company has been making consistent profits. For instance, in 2017, the firm recorded a massive $214.6 million profit from $4,198 million in revenues (Patil). The company is likely to outdo most of the competitors in the same field of specialization.
Waste SILK, Packaging Material, and Method
SILK is dedicated to reducing the release of waste to the environment. The firm has adopted recyclable packaging to limit environmental pollution. Throughout its history, the firm has driven growth by incorporating new package designs while considering its environment-friendly agenda (Armstrong). SILK uses plastics made of high-density polyethylene resins, which can easily be recycled (“Silk Diversifies Dairy Aisle”). Furthermore, the company disposes of chemicals according to environmental regulation (Ericks). For instance, the organization has constructed a wastewater pretreatment facility to prevent pollution (Agnew). However, on some occasions, the company has been indicted for violating environmental protection and faced penalties (Shoup). For example, it was fined $100,000 for notices violation in the fourth quarter of 2012 (Burcunoyan). Nevertheless, the fine did not significantly affect the firm’s reputation.
Production Process and Raw Materials of SILK
The production process involves various step-by-step procedures to create finished goods. SILK’s production process is triggered by the need to increase inventory (Canning). The warehouse manager facilitates the acquisition of new raw materials from various suppliers after receiving production requests (Alslulimani). Moreover, production begins after authorization from the plant manager (Purdy). The firm uses proprietary technologies in the plant in converting raw materials into finished products, which are then packaged accordingly (Sethi et al.). The final products are stored in the warehouse awaiting distribution.
Supply Chain, Retailers, and Distribution of SILK
The company’s supply chain, coupled with reliable retailing and distribution of SILK products, is a key pillar of the company’s success. The firm has a strategic distribution network enabling it to reach all potential customers, especially those in North America (Greenaway). The enterprise has leveraged the distribution network to reduce the overall costs of the channel (Asley). SILK has four plant facilities, each in the United Kingdom, Belgium, France, and the Netherlands, with a limited number of co-packers for low-volume products (Cornall). The business also uses third-party retailers as distributors for its commodities (Shahbandeh). In addition, there are two distribution centers in the United States to expand the retailer’s network and ease the transportation of products.
Conclusion
SILK is built on many factors, such as sourcing of raw materials, strategic supply chain, and production process, among other important components. The widespread network of farmers has been pivotal in easing the pressure on raw materials. On the other hand, the reliable supply chain, with effective retailing and distribution, is a key element for improving the sales volume and profits. Further, the implementation of environmental approaches is a leading action plan for the firm’s success.
Works Cited
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“Silk Diversifies Dairy Aisle with New Oat Yeah Oatmilk Yogurt Alternatives.” PR Newswire, 26 June 2019, www.prnewswire.com/news-releases/silk-diversifies-dairy-aisle-with-new-oat-yeah-oatmilk-yogurt-alternatives-300875489.html.
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