Supply Chain Company Review

Olam International
Rijali Isnain Haripa
2206013281
 2

Outline

1. Company Overview
2. Unit Business - OFI
3. Supply Chain in OFI
4. Unit Business - Olam Agri
5. Supply Chain in Olam Agri
6. Main Aspect in Olam International Supply Chain
7. Advantage and Disadvantage
 3

Company Overview
Olam International is a major food and
agri-business company operating in 60
countries and supplying food and
industrial raw materials to over 20,900
customers worldwide. Its value chain
includes farming, origination,
processing and distribution operations

In 2020 Olam Re-organized their

Company into 2 coherent operating
groups : OFI & Olam Agri
The Purpose: maximize Olam’s
Long-term value on a sustained
basis
 4

Unit Business - OFI

Olam Food Ingredients (OFI) is the part of the Olam group that focuses on natural,
value-added in food raw material & beverage ingredients, which consist of

Image source: https://www.olamgroup.com/about-olam/group-overview.html

 5

Operation Location of OFI

Supply Chain Flow in OFI

Source : https://www.olamgroup.com/investors/shareholders-information/proposed-demerger-and-ipo-of-olam-food-ingredients.html

6
 7

Supply Chain Flow in OFI

Farming/Sourcing Processing/Manufacturing Distribution

Innovation Center

Transporting
Factory Supplier
Customer
Warehouse

Transporting

Farmer Transporting Supplier

Warehouse
 8

Unit Business - Olam Agri

Olam Agri is part of the Olam group that focuses food, feed and fiber. Also operating food and agri-trade
flows, trading and marketing, logistic, processing and risk management which consist of:

Image source: https://www.olamgroup.com/about-olam/group-overview.html

 9

Operation Number and Location

 10

Supply Chain Flow in Olam Agri

The Supply Chain Flow at Olam Agri is similar to OFI which include

Process and Transport and

Farming & sourcing
Manufacture Distribute

operations and partnerships with both large- and small- Transform raw materials such as grains, rice and cotton and To handle, store, transport and distribute
scale producers produce value-added products including flour, pasta, semolina, food, feed and fibre, efficiently and cost-
fortified branded rice and animal feeds effectively

Trade & Manage Risk

As an independent trader, allows Olam Agri trade with

both local players and global majors in origin and Product Flow
destination markets, giving a strong cost advantage
and offering flexibility to respond to shifting trade flows Information Flow
 11

Main Aspect Of Supply Chain

As a big company that handles all steps in the supply chain, Olam International has
important aspects which they are

Farmers Suppliers Manufacturers Employer

Transform raw materials

Olam has an extensive global
The Ability of large-scale and small-scale into bespoke ingredients, Employ agronomist, analysts,
network of farmers. All aspects of
farmers to work hand-in-hand, increasing fibre and manufacturing ginners, quality, assurers and traders.
commodities and factories in
volumes and stimulating opportunity blocks with facilities close Creating Solutions and innovating
Olam are interconnected and can
around operations. to production and througout the supply chain
supply each other.
customer market.
 12

Advantage and Disadvantage

It is known that the distribution in the Olam International supply chain flow most likely is
Manufacturer Storage with Carrier Delivery. Based on review, Supply Chain in Olam International has
Advantage and Disadvantage such as below

Advantage Disadvantage

1. Involved in every step in supply chain process 1. Expensive in facilities and inventory
2. Has a good digitalization system and clear
information flow Cost
3. Have a traceability and sustainability supply 2. Higher costs in every step of the
Chain
supply chain process especially in
4. Can drive a constant operational efficiency.
5. Has many agricultural locations so that, if transportation because of increased
there is a production problem from one area, it distance and disaggregate shipping.
can be supported by other regions
6. Has a high level of variety 3. Expensive and difficult in returnability
process
 13

Reference

(1) Olam’s 2021 Annual report (2021), https://www.olamgroup.com/investors/reports-results-and-presentations.html

(2) Olam International: About Us (2022), https://www.olamgroup.com/about-olam.html

(3) Ofi Branding Reference (2021), https://www.ofi.com/about-us/global-footprint.html

(4) Olam Agri Factsheet (2022), https://www.olamagri.com/products-services.html

(5) Ponce, Juan Quiroga (2017). https://d3.harvard.edu/platform-rctom/submission/olam-

sustaining-supply-chain-competitive-advantage-in-agribusiness-through-digitalization/

(5) Chopra & Meindl (2022) College Material : Designing Distribution Networks

and Applications to Online Sales

14