4. Our Recommendations for Fullwell Transform:
1. Identify key stakeholders in the community in order to prioritize and conceptualize
where the impacts of intervention will be felt.
2. Analyze the social, environmental and economic benefits that exist at each stage of
the supply chain. Use the metrics listed in slide 6 to do this.
3. Use that framework to determine a) where the most value is lost on the supply
chain, and b) what type of value is lost (social, environmental or economic).
4. Compare feasibility of intervention with potential impact, and choose a strategy that
rates highly in both categories.
9. Fullwell Transform can add social, environmental, and economic value at each stage of the supply chain.
● For the purpose of comparability, we assigned ‘star ratings’ to reflect agreed upon
value metrics at each stage of the supply chain.
● This allowed us to estimate how much value is lost at each stage, and therefore
identify where the most value can be added.
● Due to the nature of the case, our analysis was very generalizing (it had to attempt to
capture an entire industry and an entire continent).
● But the same template could be used to analyze value-add potential for a specific
client by allowing them to fill it out themselves.
Above: A scoring template for value aggregation at each stage of the supply chain.
10. Using raw material to exemplify assessment of value loss
● Definition: Basic substance in its natural or
semi-processed state, used as an input to a
production process for subsequent modification
or transformation into a finished good.
● Why raw material as example?
○ Present in the value chain of all four
categories of agricultural products:
Problems with raw material procurement
represent a significant value loss because
they affect the rest of the supply chain
○ Focus of this case study:
“How can Fullwell Transform’s
capabilities add value to this supply chain
— particularly at the raw materials
stage?”
11. The Palm Oil Case: Qualitative analysis
Value Loss By Type
Stage in Supply Chain Social Environmental Economic
Agricultural Production Forests destroyed for palm oil plantations provide
"ecosystem services" for local communities (i.e.
water, food and fuel).
Plantation expansion contributes to tropical
deforestation and GHG Emissions.
Smaller operations benefit less from economies of
scale at the production level.
Processing Capital equipment for processing is very
expensive, so small-scale producers often rely on
manual processes that are inefficient and
physically taxing.
Between 72 and 76% of fresh fruit bunches (FFB)
become solid waste. In some large and medium-
scale mills this waste is put to useful purposes.
SMEs often miss the opportunity to put solid waste to
economic use (e.g., using empty bunches as mulch
or fuel, using fibre residual to fire large boilers).
Manufacturing Workers in the palm oil industry in Africa face
very low wages. Also, women are much less likely
to have permanent work contracts than men.
A growing global demand for palm oil by food, fuel,
and cosmetics manufacturers is exacerbating the
environmental damages of the industry.
Without the benefits of scale, SMEs often miss out
on opportunities to do business with large upstream
buyers (e.g., Procter & Gamble, McDonalds).
Packaging Workers in the palm oil industry in Africa face
very low wages. Also, women are much less likely
to have permanent work contracts than men.
Large scale use of raw materials for packaging and
overuse of certain types of energy has led to its
depletion.
Not applicable.
Distribution Workers in the palm oil industry in Africa face
very low wages. Also, women are much less likely
to have permanent work contracts than men.
Environmental impacts related to transportation,
including oil spills from ships and greenhouse gas
emission from trucks.
Not applicable.
Retail & Consumption Large scale retailers such as McDonald’s and
Walmart pay slightly above minimum wage
contributing to low household incomes and a
lower standard of living
Not applicable. Exploitation of workers is prompting consumer
concern and legal action that could harm brands
12. Model:
- Economic, environmental and social
measures of value combined to
determine where agricultural sectors
rate at different stages of the supply
chain.
Insights:
- Value add/loss differs significantly
among agricultural sectors.
- Generally speaking, value measures
improve over the supply chain.
- The food industry is the highest-
rating, while raw materials is the
lowest, exhibiting the most value lost
across the supply chain.
Question(s):
- What type of value is lost in the raw
material supply chain?
- What measures represent the
greatest segment of value lost?
Data Insights
13. Model:
- Current value-add potential,
calculated as the sum of potential
value minus the sum of actual
value, shown by type of impact
(social, environmental,
economic).
Insights:
- Raw materials account for the
greatest total value lost,
especially in environmental and
social impact.
- Focusing on this sector
Data Insights
15. Model:
- After identifying raw
materials as the most
attractive industry for
intervention, the industry
was examined at the supply
chain and value type levels.
Insights:
- There is potential to add
significant value at each
stage of the raw materials
value chain.
- Social and environmental
value-add potential is
greatest in the early stages
of the supply chain.
Data Insights
16. Our Recommendations for Fullwell Transform:
1. Identify key stakeholders in the community in order to prioritize and conceptualize
where the impacts of intervention will be felt.
2. Analyze the social, environmental and economic benefits that exist at each stage of
the supply chain. Use the metrics listed in slide 6 to do this.
3. Use that framework to determine a) where the most value is lost on the supply
chain, and b) what type of value is lost (social, environmental or economic).
4. Compare feasibility of intervention with potential impact, and choose a strategy that
rates highly in both categories.
We scarificed specificity to achieve comprehensiveness
Raw materials, also known as primary commodities, are basic materials used to produce intermediate materials, energy, or finished products.
Raw material factors such as purchasing power, quality, capacity, and inventory strongly influence overall agricultural production and performance.
Thus, problems with raw material procurement represent a significant value loss because they affect the rest of the supply chain.
Examples include: shortage of raw material, issues with quality, seasonality or discontinuity, costly procurement & packaging and poorly trained labor force.
For each category, we perform a qualitative analysis and use our findings to estimate ratings. We gather information first, then use the research to estimate the agreed upon metrics.
MAKE EVERYTHING GREEN FOR LAURA
Feasibility was measured comparatively, not independently. Most of our research focused on value-add potential.
This matrix determined our hypothesis that raw materials SMEs represent the greatest value-add potential.
