Supply Chain Design at Clif Bar & Company When Gary Erickson started out on one of his typical long distance bike treks n 1990

Supply Chain Design at Clif Bar & Company When Gary Erickson started out on one of his typical long distance bike treks n 1990. he expected to have a great ride. What he didn”t expect was to come home with the idea tor a sports nutrition energy bar that became the genesis of Clif Bar & Company. After camomile most of his supply of Pesti Bars part way through the 7e-mite ride, he couldn”t face the prospect of consuming another one. instead, he figured he could come up with something better. Something spots enthusiasts wouldn”t mind eating in quantities white out on the road or the trait. The result? The CUR® BAR, an all-natural combination of grains. nuts and fruit, with for more taste appeal than the standard energy bar of the time. Today, the Berkeley. California-based company has over 100 stock-keeping units. Of Skits. in its product mix. Inducting numerous flavorful versions of the original CLIF BAR plus brands such as LUNA®. The Whole Nutrition Bar for Women TM, CLIF Kid Organic ZBaRTM. The Whole Grain Energy bar for kids. CLIF Moor””, The Sweet 8 Salty Trail Mix Bar, and QE Nectar®, an organic fruit and nut bar made with lust five ingredients. CLIF BARs were originally distributed through cycling shops and other niche retail cutlets. but can now be found in a wide variety of retail cutlets in the United States, such as Whole Foods. Trader Joe”s. RS, and even your local grocery store. From the beginning. CLIP BARs were made from wholesome ingredients. Yet as Erickson looked at the ingredients being sourced for CLIF BAR, he realized that making a healthy food product and sourcing ingredients from farmers, ranchers and cooperatives 45ing organic growing techniques was a “natural” fit. The company made a commitment to both sustainable growing techniques and using Ofey organic raw ingredients back then, and by 2003. had made CUE BAR 70 percent unified cream. Sate then, six of Chi Bar & Company”s CLIF and LUNA brands are now made with 70 percent organic ingredients or more .The impact on the supply chain for sourcing organic ingredients s tremendous. First. there s a limited—but growing—number of organic growers for the ingredients C44 Bar uses. Second. growers who do not use pesticides. herbicides and genetically modified plants are SOfreOfne6 at risk of producing biter app welds. Third, it can be more costly to stem the ingredients. And fourth, as more convenes commit to environmentally responsible programs and organic ingredients, competition is great for the available *bar supply The company”s forecasters and planners work hard to manage both the raw ingredient inventory flows from upstream suppliers, and the finished goods flows to downstream customers, to be sure products are available in the right quantities and net locations Spending on raw materials and pack-aging materials is aggregated to provide efficient sourcing efficiency. Production is planned, based on both input and output forecasts, to maximum customer service and minimize inventory. Several times a year. production plans are shared with business partners at all points of the supply chain to make sure the flow of ingredients and products s smooth, and that inventories do not accumulate at any point in the supply chain beyond panned vet. woes. Monthly forecasts and changes to plans also are communicated to all supply chain partners. Clif Bar 8 Company managers wow that consumers” tastes for products change regularly so new flavors and brands are periodically introduced into the various brands. Likente, flavors are sometimes retired to make room fee new ones. As the company”s research and development team prepares to rime a new product idea from the test kitchen to the manufacturing plant supply don managers must get to work assuring any new ingredients can be procured. As a smaller and privately-owned company. Clif Bar does not own its manufacturing plants and distribution centers. and relies on contractual agreements with outsoursers in the United States. Throe supply chain business partners are carefully chosen for their ability to manufacture and distribute Clif Bar”s products, their commitment to quality, and their alignment with Cif Bar”s own value system. This value system, referred to as the company”s “Five Aflatiols.” holes that CM Bar 8 Company will work toward so stairing its people. brands. business, community, and the planet. Greg Ginsburg. Vice President of Supply Chain. wants to be sure alt parts of the supply chain want or not—are in agreement with these aspirations. We look at their energy Sourcing, labor practices, and workplace environments. And where we source products from small cooperatives, well go as far back as possible to assure those tiny growers know about our expectations,” says GinsburgQUESTIONS1.What type of supply chain does Clif Bar 8 Company have? Efficient. responsive. a a combination of both? How can you tell?2.What business risks does Clif Bar 8 Company face with so mane pats of its supply chain outsourced?3.What issues or risks could Cif Bar 8 Company encounter it it chose to expand to international mantes?