Supply Chain Work

1. Jason, Gergana, Chris http://owl.english.purdue.edu/owl/resource/747/01/
Dr. Miller, OMS 511
April 2, 2010
Ben & Jerry’s Ice Cream Supply Chain
1) Introduction
Ben & Jerry's is an American ice cream company that manufactures ice cream, frozen
yogurt, sorbet, and ice cream novelty products, headquartered in South Burlington,
Vermont. The company is most famously known for their innovative and cleverly named
ice cream flavors such as Cherry Garcia, Chubby Hubby and Imagine Whirled Peace
(Wikipedia-Ben & Jerry’s).
Ben and Jerry’s began in 1978 when lifelong friends and dedicated activists Ben Cohen
and Jerry Greenfield invested $12,000 to open an ice cream parlor in a renovated gas
station in downtown Burlington, Vermont. In 1980, the pair rented space in an old spool
and bobbin mill in Burlington and began packing their ice cream in pints. In 1981, the
first Ben & Jerry’s franchise opened. The company became wildly popular by using fresh
milk from Vermont and concocting imaginative ice cream creations. The pair has made it
known that they were “in this business to create some good in the world and enjoy
themselves while they earned a living” (benjerry.com).

2. The Ben & Jerry’s Foundation was established in 1985 to fund community-oriented
projects; with the company providing 7.5% of their annual pre-tax profits. In 1988, the
pair won the title of U.S Small Business Persons of The Year, awarded by U.S. President
Ronald Reagan (benjerry.com).
In April 2000, Ben & Jerry's announced its acquisition by multinational food giant
Unilever. Ben and Jerry created an ice cream shop that over time evolved into a
worldwide ice cream distributor and was purchased for $326 million (benjerry.com).
Unilever said it hopes to carry on the tradition of engaging "in these critical, global
economic and social missions." Although the founders are still engaged with the
company, they do not hold any board or management position and are not involved in
day-to-day management of the company ("Ben & Jerry's & Unilever to Join Forces").
2) The company’s strategy and how they align the supply chain
According to Ben and Jerry’s website there are three interrelated sections that comprise
the company’s mission:
Product Mission : “to make, distribute and sell the finest quality, all natural ice cream
and euphoric concoctions with a continued commitment to incorporating wholesome,
natural ingredients and promoting business practices that respect the Earth and the
Environment”.
Economic Mission- “to operate the company on a sustainable financial basis of
profitable growth, increasing value for their stakeholders and expanding opportunities for
development and career growth for their employees”.

3. Social Mission – “to operate the company in a way that actively recognizes the central
role that business plays in society by initiating innovative ways to improve the quality of
life locally, nationally and internationally”.
Ben and Jerry’s mission is founded on a prospering yet sustainable corporate concept
that the company addresses by seeking new and creative methods while respecting
individuals inside and outside the company (benjerry.com).
Respecting the Earth and the Environment
Ben and Jerry’s has taken their product mission’s pledge of environmental activism and
aligned it to their supply chain operations through various endeavors. They are pioneers
of the “Eco-Pint” packaging movement in 2001; an environmentally-friendly unbleached
paperboard container that was used until 2006. Additionally, they pioneered the testing of
the environmentally friendly refrigerant hydrocarbon in Boston and DC areas. Currently,
hydrocarbon is awaiting approval for widespread commercial use from the US
Environmental Protection Agency (EPA). They have also worked consistently with the
scientific community since 1999 to reduce their product freezers’ energy consumption
through thermoacoustic chilling, a technology that employs sound waves to keep frozen
products cool. Ben and Jerry’s has helped create awareness of CO2 emissions and the
environment by creating the “Lick Global Warming” campaign which educates people
on how to reduce their own CO2 emissions and how to get Congress to take action
against global warming. The company also has a commitment with Efficiency Vermont
(The nation’ first statewide provider of energy efficiency services) to target areas in their
operations for energy improvement; from waste reduction to installing more efficient

4. pipes to increase production (benjerry.com).
Ben and Jerry’s is a leader in creating environmentally friendly methods to reduce
their costs without reducing quality of their product. The company is a proud member of
the Ceres Companies, a national network of investors, organizations and groups working
with companies and investors to address sustainability challenges and achieve
competitive advantages by integrating environmental and social performance into their
business strategies (ceres.org). Their commitment over time to the environment has been
an example for other companies to follow.
Incorporating wholesome, natural ingredients
Ben and Jerry’s has verified their commitment to their product mission and aligning
their dairy supply chain by primarily purchasing their cream and condensed milk from
the St. Albans Cooperative Creamery in Vermont since 1990. The Co-op is a 500-plus
family of farmers that is an integral partner in the Dairy Stewardship Alliance, a unique
program that helps farmers move toward more environmentally friendly sustainable farm
practices. St. Albans is a supplier who does not use rBGH, a genetically engineered
growth hormone commonly injected into cows to increase milk production. Ben and
Jerry’s believe that the use of rBGH “is a step in the wrong direction toward a synthetic,
factory-produced food supply” (benjerry.com).
Ben and Jerry’s European production has been supplied with free-range eggs since
2004, so the U.S. transition to more humane supplied eggs was inevitable. Starting in
2007, Ben and Jerry’s began transitioning their eggs suppliers over to Certified Humane
cage-free farms suppliers. Upon completion of this in 2011, Ben and Jerry’s guarantees

5. that the entirety of their egg supply will come from hens “guaranteed to have wholesome
food, access to clean water, and adequate space for normal behavior” (benjerry.com). The
company claims that by demonstrating their willingness to absorb the extra cost of cage-
free eggs, they will give the cage-free industry time to expand supply to meet their
volume requirements. This landmark decision will make Ben & Jerry’s one of the first
national food manufacturers to commit to using Certified Humane cage-free eggs
(benjerry.com).
Ben and Jerry’s sources the following ingredients by collaborating with Fair Trade
suppliers. Fair Trade is the concept of paying the farmers/suppliers a premium wage that
lets them provide more adequately for their family and communities, leading to better
healthcare, education and housing and economic empowerment (benjerry.com).
• Vanilla is supplied from a 1,200 small scale growers fair trade in western Uganda.
• Macadamia nuts supplied that are ethically grown using sustainable farming
practices in Malawi. They are also dipped in chocolate that is Fair Trade.
• Cocoa powder that comes from various Fair Trade suppliers such as the farmer
co-ops on the Ivory Coast and a co-op in Conacado that consists of about 10,000
small-scale farmers.
• Coffee extract supplied from the Fair Trade certified Huatusco co-op located in
Mexico.

6. Improve the quality of life locally, nationally and internationally
Ben and Jerry’s social commitment to its consumers is fundamental to their corporate
mission. The company focuses on giving back to those that support them and help them
grow. In addition to using Fair Trade suppliers, Ben and Jerry’s also uses suppliers such
as Greyston Bakery, a business that provides employment and support services to former
homeless, low-income and disenfranchised individuals (benjerry.com). Greyston
brownies can be found in favorites such as “Brownie Batter”. The company’s goal is to
hire and train those who otherwise might not ever find a job, getting them on the path out
of poverty and on to self-sufficiency; this mission works hand in hand with Ben and
Jerry’s social commitment (benjerry.com).
Ben and Jerry’s promote a peaceful voice toward controversial issues. Over time, this
has been completed through creating and distributing unique ice cream products such as,
Imagine Whirled Peace or Stephen Colbert’s Americone Dream. The proceeds of these
products go to charities dedicated to improving lives (benjerry.com).
3) Supply Chain and Interaction with Strategy:
The supply chain for Ben and Jerry’s must take into consideration the type of
product that is being created. According to Marshall Fisher’s article, “What is the right
supply chain for Your Product”, “…in the traditionally functional category of food, Ben
and Jerry’s… have tried to gain an edge with designer flavors and innovative concepts
(106).” Since ice cream is a functional product, there is a life cycle of longer than 2

7. years. However, the innovation that Ben and Jerry’s frequently completes for their
product causes a not so clear image of what type of product they have created. Since the
type of supply chain used is confidential and not made publicly, research was needed to
determine what type of chain may be used. The supply chain used does try to use an
environmental friendly physical function. In addition, Ben and Jerry uses market
mediation strongly in delivering products to the consumer. They follow feedback and
flavor suggestions from consumers routinely. With all the information presented, we
concluded that the company may have an overall functional product but may have a
separate division committed to their new innovative flavors. The company should use an
efficient supply chain for their traditional flavors such as vanilla, chocolate, mint
chocolate chip, etc. and create a more responsive supply chain for their innovative
products like Cherry Garcia, Whirled Peace, and Fossil Fuel. This would save time and
money for the company, if not already being enforced.
The supply chain of Ben and Jerry’s is one that will follow the company’s
product, economic, and social missions while giving back to the communities that
support them. The use of eco-friendly processes and materials is very important to Ben
and Jerry’s. The use of Greyston Bakery as a supplier ensures hiring from the local
community for Greyston. Ben and Jerry’s also believes in using Fair Trade to ensure
workers of their suppliers do not work poor conditions or have lower wages. All of these
reasons leads one to believe that the concept of social responsibility concept is very
important in all of the processes used at Ben and Jerry’s.

8. Inputs
Raw materials: dairy products such as milk and cream; eggs, extracts such as coffee and
vanilla, brownies, cocoa powder, nuts and fruit.
Process A
Creation of Product
Process B
Control and Disposal of Waste
Process C
Packaging and shipping
Output
Ice creams distribution to supermarkets, grocery stores, convenience stores, scoop
shops, restaurants and miscellaneous venues
5) Quality Metrics
Ben & Jerry’s purchasing practices include suppliers with Environmental
commitments, such as carbon dioxide balancing from Superior Nut; with social vision,
such as job training and community support from Greyston Bakery, and third party
certifications, such as Fair Trade. In 2006, Ben & Jerry’s embarked on a project to
devise new metrics to measure the impact of many of their Social Mission projects,
including Values-Led Sourcing initiatives. They also continue to seek a balance between
their mission-driven desire to support forward-thinking suppliers and their need to keep
costs down in the supply chain. A NAIC, which manages Ben & Jerry’s supply chain,
keeps a sharp eye on costs, while Ben & Jerry’s continues to seek Values-Led suppliers
who will create real social benefits and keep aligned with their three-part mission
(benjerry.com).
In 2006, for example, NAIC supply chain expressed concerns about the supply, quality,
and cost of the unbleached Eco-Pint container that was being used to package the ice

9. cream pints. The Ben & Jerry’s team responded by presenting several options for
alternative packaging that could answer these concerns, while still maintaining their
dedication to environmentally responsible packaging. Together, and with input from Ben
& Jerry’s board, a solution was crafted that was a combination of values and good
business sense (benjerry.com).
Outside of Ben and Jerry’s Values-Led Sourcing initiatives, all of their ice cream
suppliers are expected to follow practices consistent with the Code of Business Principles
of their parent company, Unilever. This code includes: continuous improvement in
managing environmental impacts, safe and healthy standards for workers, and a firm
commitment to human rights, among other things. Unilever is also a signatory to the UN
Secretary General’s Global Compact of 1999 which is committed to support and respect
human rights within the sphere of the company’s influence (benjerry.com).
Product Replacement
In 2006, Ben & Jerry’s made the decision to transition all of the eggs used in their U.S.
ice cream production to Certified Humane Cage-Free suppliers over a four-year period,
which began in 2007 (benjerry.com).
They made plans in 2006 to convert the vanilla extract in their smooth Vanilla ice
cream — and the cocoa powder in their smooth Chocolate ice cream — to Fair Trade
Certified in 2007. For the last several years, Ben & Jerry’s have purchased vanilla extract
and cocoa powder for these flavors from other Values-Led suppliers, so the change did

10. not significantly increase their VLS spend or affect the number of their VLS suppliers
(benjerry.com).
6) Product Life Cycle
Ben and Jerry’s is a company that is over 30 years old yet still in the growth stage of
their product life cycle. Ice cream is traditionally a functional product having a life cycle
of two years or more (Fisher, 107). It appears that Ben and Jerry’s is frequently coming
up with innovative ways to stay ahead of their competition without diminishing their
profits. However, this product innovation can cause volatile demand and unpredictability.
Since the supply chain is on the borderline between using a function and innovative
product, the life cycle of the product appears to be in the growth stage. The research and
development in their product and community involvement allows growth. Opportunities
are created for workers that may not have had a fair life beforehand. The value created
results in profits and a stable workforce consisting of a family atmosphere
(benjerry.com).
8) Triple-A Supply Chain
Agility, Adaptability, and Alignment are the three components of the Triple-A Supply
Chain. Ben & Jerry’s utilize all three components to some degree.
Agility – Methods to improve agility used by Ben & Jerry’s include:
Although the component of agility is not a main point for Ben and Jerry’s, it
remains important because the frequent innovation of flavors allows the company to be
versatile and differentiate from competitors. The concept of market mediation is also a

11. strategy that the supply chain uses for agility. Ben and Jerry’s believes the voice of the
customer is an important part of their agility in the ice cream industry.
Adaptability
Ben and Jerry’s has been adapting their supply chain to use more natural and humanely
produced ingredients in conjunction with better standards across all products and regions.
They’ve been using eggs supplied free-range hens for 100% of their European production
since 2004. At the end of 2008, about 30% of eggs used in their U.S. production were
sourced from cage-free farms. The company is committed to source their entire eggs
supply cage free by 2011. Additionally, in a groundbreaking move, Ben & Jerry’s has
proclaimed that all 11 ingredients (cocoa, banana, vanilla and other flavorings, fruits and
nuts) in their entire global flavor portfolio will be Fair Trade Certified™ by 2013. They
will be working with over 27,000 farmers in Fair Trade cooperatives to ensure this
commitment (“Ben & Jerry’s Goes Globally Nuts for Fair Trade”).
In response to the challenges the environment faces from business production and
practices, Ben and Jerry’s has worked on adapting their product packaging incorporating
more sustainable materials. In early 2009, they began converting to Forest Stewardship
Council (FSC) certified paperboard for all U.S. pint containers. The FSC certification
means that the paperboard comes from sources that meet Rainforest Alliance criteria for
sustainably managed forests, including the protection of wildlife habitat, maintenance of
biodiversity, avoidance of genetically modified tree species, and protection of traditional
and civil rights (benjerry.com).

12. Ben & Jerry’s have been adapting operations to help offset global warming
challenges in response to the challenge of climate change. Such as developing detailed
carbon emissions reduction plan, which includes adapting plants to run more efficiently
and the purchase of Gold Standard carbon offsets, in order to meet requirements for a
‘Climate Neutral’ claim for their entire European business. In the United States, they
continued work on a carbon inventory of their operations to identify the best areas for
reducing climate impacts by adapting new practices. (benjerry.com)
In Europe, Ben & Jerry’s created the Ben & Jerry’s Climate Change College, a
program that sponsors activists from each of eight European countries to create,
implement and achieve greenhouse gas reductions in their respective countries. These
Climate Change Ambassadors were encouraged by receiving business plan mentoring, a
trip to the Arctic for research and financial support for plan development. From this
Ambassadors were able to promote green choices for home improvement projects and
assist restaurants reduce their water usage and recycle cooking oil.(benjerry.com)
In the United States, Ben & Jerry’s and Greenpeace have partnered to create the
“Cleaner, Greener, Freezers” program to launch environmentally friendly hydrocarbon
(HC) freezers. Fifty HC freezers are being used in a pilot test to help gain EPA approval
for widespread commercial use in the U.S. as it is one of the few developed countries that
has not yet adapted to this technology. If and when approved by the EPA it is expected
that HC freezers will become widely adopted in the United States, as they are more
efficient than the current use of hydrofluorocarbon (HFC) freezers and do not have the
negative climate impacts of HFC gases (benjerry.com)

13. Alignment
An example of how Ben & Jerry’s is committed to aligning their suppliers with their
mission is demonstrated by the following: in 2001: $119,120,000 was spent on ingredient
and supply purchases. Approximately 51.87% of those purchases were from companies
that Ben & Jerry’s viewed as being aligned with their mission and values. This was an
increase from 41.19% in 2000 (benjerry.com). A list of these suppliers follows:
• Greyston Bakery
As mentioned above, this supplier of brownies is based in Yonkers, New York,
and owned by an operating foundation that represents a unique business model.
Greyston has been a supplier of brownies to Ben & Jerry’s since 1988.
• LaTrinidad Cooperative
This Fair Trade coffee co-op sourced coffee extract from Coffee Enterprises and
coffee beans from the Oaxaca State in Mexico. In previous years, Aztec Harvest
Cooperative was the source for the beans used in Ben & Jerry’s coffee extract.
• Cia Agricola La Gavilana
In conjunction with their vanilla supplier, the Virginia Dare Company, this
company supplied a blended vanilla extract that contained vanilla beans from the
Savegre River region of Costa Rica. In addition, they have leveraged their
relationship with Ben & Jerry’s to secure additional funds to support community
development projects, including a regional health center, acquisition of supplies
for schools and infrastructure improvements.

14. • Gralo Borja
Sensient Flavors, Inc., a supplier of banana puree, purchased the puree from the
Borja family business in Ecuador. According to Sensient, Mr Borja continues to
work on transitioning to organic methods and to educate Ecuadorian farmers
about sustainable farming methods.
• Sweetheart
This manufacturer of pint containers sourced their paper supply from Riverwood
International Corporation. Riverwood’s manufacturing process for this paper is
free of chlorine bleach instead they used a titanium dioxide whitened clay
coating on their paperboard (benjerry.com).

15. Works Cited
"Baking In The Glory." Ben & Jerry's UK. Unilever UK Limited. 2010. 10 April 2010.
<http://www.benjerry.co.uk/ourbrownies>
benjerry.com. Ben & Jerry’s Homemade, Inc. 2010. Web. 2 April 2010.
<http://www.benjerry.com>
“Ben & Jerry’s.” Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 21
April 2010. Web. 24 April 2010. <http://en.wikipedia.org/wiki/Ben_%26_Jerry%27s>
“Ben & Jerry’s Goes Globally Nuts for Fair Trade.” Ben and Jerry’s Homemade Ice
Cream. Ben & Jerry’s Homemade, Inc. 18 February 2010. Web Press Relase. 21 April
2010.<http://www.businesswire.com/portal/site/benjerry/permalink/?
ndmViewId=news_view&newsId=20100218006252&newsLang=en>
"Ben & Jerry's & Unilever to Join Forces." Ben and Jerry’s Homemade Ice Cream. Ben
& Jerry’s Homemade, Inc. 12 April 2000. Web Press Relase. 5 April 2010.
<http://www.benjerry.com/company/media-center/press/join-forces.html>
ceres.org. Ceres 2010. Web. 18 April 2010. < http://www.ceres.org>

16. Fischer, Marshall. “What Is the Right Supply Chain for Your Product?” Harvard
Business Review March-April 1997: 105-115. Print.
jerrygreenfield.com. Celebrity Websites. March 2005. Web. 13 April 2010.
<http://www.jerrygreenfield.com>
“Perfect Cows. Perfect Milk." Cyclone Dairy. Ben & Jerry’s Homemade, Inc. 2009. Web.
2 April 2010. <http://www.cyclonedairy.com>