GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION [GIMPA]

THE USE OF GREEN LOGISTICS: THE WAY FORWARD FOR

COCOA PROCESSING COMPANY LIMITED (CPC).

LAWRENCE FESTUS SCHANDORF

(217028756)

A Project Work submitted to the Ghana Institute of Management and Public

Administration (GIMPA) Business School, in partial fulfilment of the requirements for the

award of Master of Business Administration (MBA) Degree in Supply Chain Management.

July 2019

ABSTRACT

Initially supply chain profits and costs were exclusively positioned as financial or economic costs but over the years logistical activities were observed to have direct impacts on the environmental and social profits and costs that affect the environment through pollution and waste of resources, the health and the safety of people and social corporate responsibility. Cocoa Processing Company Limited still relies only on hydro-electricity and fossil fuel for its primary and supporting activities which is a managerial problem that has to be solved due to unreliable prices and supply of these energy sources. Ghana has an installed capacity of renewable energy of about 2% and the government is looking at ways to increase this figure to 10% by 2020 from the use of solar, wind and bioenergy alternative energy sources (Afrelec, 2017).

CPC can go green by using efficient renewable sources of energy such as solar energy, biofuel, biomass and even wind to reduce cost of operations by supporting electricity usage since its high energy consumption contributes largely on its cost of operations. The above project is a case study that is aimed at ascertaining the long term necessity of investing into clean and lean logistics. Hence, the main purpose of this project is to incorporate green logistics into the logistical activities of Cocoa Processing Company Limited (CPC).

It is for this reason that the research will use the qualitative method to retrieve information from customers, so as to perform a value chain analysis and use the quantitative method by the analysis of data for a trend in electricity consumption of CPC. The aim of logistical activities is to coordinate all activities in the supply chain hence these concepts of green logistics has to be implemented in a way that does not negatively affect meeting customer requirements and shareholder equity but rather further minimize costs economically, environmentally and socially.

The overall study objective is to analyze the trend in energy consumption levels of CPC and ascertain if its operations can be powered with other alternative sources of energy to reduce electricity consumption.

The study will allow CPC and other manufacturing industries realize the validity of investing into cleaner and efficient activities in moving products and information for long term high expected rates of returns to its shareholders although it may have high initial costs. It will also This study will help CPC leverage on alternative energy which will reduce operations costs in terms of energy consumption and make the value chain leaner if implemented by CPC, thereby improving profitability in cost leadership and in the long run aid in reducing energy wastage, transportation costs and pollution. It will also provide an insight into concepts such value chain analysis and the trend analysis of a manufacturing company for the use by scholars in similar future studies.

It is therefore time for CPC to use green logistics in the aspects of energy consumption to save on operational cost while protecting the environment in the long time whiles avoiding the backlash of the unreliable power supply in Ghana. It is for this reason that the case study has the title “The use of green logistics: The way forward for Cocoa Processing Company Limited (CPC)”.

TABLE OF CONTENTS

ABSTRACT i

TABLE OF CONTENTS iii

CHAPTER ONE 1

INTRODUCTION 1

1.1 Background of the Study 1

1.2 Problem Statement 2

1.3 Objectives of the study 3

1.4 Research Questions 3

1.5 Methodology Summary 3

1.6 Significance of the study 4

CHAPTER 2 6

LITERATURE REVIEW 6

2.1 Supply Chain Management 6

2.2 Logistics Management 8

2.3 Green Logistics 8

2.3.1 Paradoxes of Green Logistics 9

2.4 Lean Manufacturing 10

2.4.1 Categories of Waste 10

2.4.2 Relationship between Lean and Energy use 12

2.4.3 Categories of activities 12

2.4.4 Energy Value Stream Mapping 13

2.4.5 Value Chain Analysis 14

CHAPTER THREE 15

PROFILE OF CASE STUDY AND METHODOLOGY 15

3.1 Introduction 15

3.2 Profile of Case Study Company 15

3.2.1 Vision 15

3.2.2 Mission 15

3.2.3 Core Values 16

3.2.4 Products 17

3.3 Methodology 19

3.3.1 Research Design 20

3.3.1 Qualitative Analysis 20

3.3.2 Quantitative Analysis 25

CHAPTER FOUR 30

ENVIRONMENTAL AND SITUATIONAL ANALYSIS 30

4.1 Introduction 30

4.2 Overview of Primary Activities 30

4.3 Internal Analysis 33

4.3.1 Value Chain Analysis (VCA) 33

4.3.2 SWOT Analysis 34

4.4 External Analysis 35

4.4.1 PEST Analysis 35

4.5 Critical Environmental Factors 39

4.5.1 Internal Factors Analysis Summary (IFAS) 39

4.5.2 Internal Issues Priority Matrix 40

4.5.4 External Issues Priority Matrix 41

4.5.5 Impact of Critical Environmental Factors on Strategy Formulation 41

4.6 Identification of managerial issues 43

CHAPTER FIVE 45

ALTERNATIVE COURSES OF ACTIONS AND RECOMMENDATIONS 45

5.1 Alternatives and Recommendations 45

5.2 Issue A: Increase in cost due to high electricity and diesel consumption 45

5.2.1 Alternative 1: Bioenergy Source 46

5.2.2 Alternative 2: Solar Energy Systems 47

5.2.3 Alternative 3: Energy Saving Equipment 47

5.2.4 Recommendation and Justification 47

5.3 Issue B: The low utilization of the total production capacity of CPC 50

5.3.1 Alternative 1: Sharing Capacity 50

5.3.2 Alternative 2: Subcontracting 51

5.3.3 Alternative 3: Sales Promotions 51

5.3.4 Recommendation and Justification 51

5.4 Issue C: The availability of light crop cocoa beans for production 52

5.4.1 Alternative 1: Support Farmers 52

5.4.2 Alternative 2: Vertical Integration 53

5.4.3 Alternative 3: Owned or dedicated farms 53

5.4.4 Recommendation and Justification 53

CHAPTER SIX 54

IMPLEMENTATION OF RECOMMENDATIONS 54

6.1 Introduction 54

6.2 Alternative Solution for Issue A: Solar Energy Systems 54

6.2.1 Implementation Plan for Solar Energy Systems 55

6.3 Alternative Solution for Issue B: Subcontracting 56

6.3.1 Implementation Plan for Subcontracting 57

6.4 Alternative Solution for Issue C: Vertical Integration 57

6.4.1 Implementation Plan for Vertical Integration 57

CHAPTER SEVEN 58

SUMMARY AND CONCLUSIONS 58

7.1 Summary of the study 58

7.2 Conclusion of the study 58

REFERENCES 60

APPENDICES 65

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Alternative energy and green manufacturing is gaining face globally and is helping to reduce cost of operations within the supply chain in terms of energy consumption. Among various types of wastes in manufacturing, energy waste is gaining attention nowadays.

New cocoa manufacturing companies have emerged in Ghana and are using innovative ways to gain a competitive edge in the Ghanaian cocoa manufacturing market. A few of such companies, aside the focal company which is Cocoa Processing Company Limited are Niche Cocoa Industry Limited, Afrotropics, Cargill Ghana Limited, Cocoa Touton Processing Company and Archer Daniels Midland (which has been acquired by Olam)(Sulaiman and Boachie-Danquah, 2017).

Getting cocoa products to the end user is much more than the farming of cocoa. It is business. It is science. It is information technology. It is logistics. Finally, it is supply chain management.

The battleground for global competitive advantage has entered the domain of supply chain and logistics management (Monczka, Handfield, Giunipero, and Petterson, 2009); particularly the logistical activities that are required to move goods efficiently through the supply chain to the end user. Thus, the arena of competition is moving from ‘organization against organization’ to ‘supply chain against supply chain (Lu, 2011).

In many firms the value chain of all supporting to primary activities involves the consumption or electricity, fuel and water which produce some form of waste. Cocoa Processing Company can further reduce cost through its operations by implementing eco-friendly logistics through green logistics so as to increase productivity and maintain its low-price leadership in the Ghanaian market and beyond. The companies that configure the best supply chains become the market winners or leaders and gain a competitive advantage. The ability to design, produce, and sell high quality products and services in a cost-effective manner will always remain a primary market qualifier (Monczka et al., 2009).

1.2 Problem Statement

CPC still relies only on electricity and fossil fuel for its primary and supporting activities which is a managerial problem that has to be solved due to unreliable supply of these energy sources. CPC can go green by using efficient sources of energy such as solar energy, biofuel, biomass, wind and even boilers to reduce cost of operations by supporting electricity usage since its high energy consumption contributes largely on its cost of operations. It is therefore imperative that CPC’s logistical activities reflect positively on the economic, environmental and social impact on its supply chain and Ghana as a whole. The energy efficiency project only works well if there is total involvement of policies enforced and applied by management and all employees (Carreira, 2005).

The increase in population is driving up the demand for fossil fuel due to increase of vehicles in the transport system which inevitably increases pollution. Emitted CO₂ causes depletion of the ozone layer, but opens up doors for exploring renewable energy sources for manufacturing firms due to the increase in the rate of sunshine, wind and waste. The way forward in the manufacturing industry is finding smart ways to efficiently manage the production and consumption of energy. Green logistics plays a big role in this context of sourcing and efficiently using energy and managing waste so as to protect the environment while reducing cost of operations.

The use of eco friendly resources to efficiently and effectively mange energy consumption and waste disposal whiles saving on costs of operations gives a firm a competitive advantage (Wong et al., 2015).

1.3 Objectives of the study

1. The overall study objective is to analyze the trend in energy consumption levels of CPC.

2. To ascertain if its operations can be powered with alternative sources of energy.

3. The study also aims to identify the needs of the customers and potential customers of CPC.

4. To analyze the processes that is duplicated and adds little or no value within the value chain.

1.4 Research Questions

1. What are the sources of energy for CPC?

2. What are the energy consumption levels for the past three years and can they be supported by alternative sources of energy?

3. How does CPC manage its waste disposal and the carbon footprint of the transport system?

1.5 Methodology Summary

The research will employ both the qualitative and quantitative methods to identify the needs of the customers which will help analyze the value chainby setting priorities to actions that add high value whiles using the lean manufacturing approach to identify the energy consumption levels within the operations of CPC. During the qualitative analysis, information will be obtained randomly from customers and potential customers through a questionnaire so as to know their desire on products and services. On the other hand, quantitative analysis will be conducted using a forecasting method called the trend analysis which is a data driven approach to analyze previous annual energy consumption trends for the prediction due to uncertainties in future increase or decrease and determine the alternative energy to leverage on so as to support the current electricity and fossil fuel consumption and reduce operations cost on energy consumption by about 25% and more in the subsequent years. Lean basically means waste elimination. The idea is to reduce or eliminate overuse of resources, time energy and other processes which do not add value. This simply implies that products are made efficiently without have to use extra inputs; in this case less electricity and fossil fuels. Unfortunately,energy consumption data for individual equipment at individual stations were not available at the time of this study and would have immensely contributed to making the value stream of CPC leaner; by pointing out sectors that consumed high levels of electricity and added little or no value to the primary activities of CPC. The electricity consumption data for such individual equipment and stations can however be pursued in future studies similar to this, so as to provide a deeper insight into the lean mindset of green logistics.

1.6 Significance of the study

The significance of this study can be viewed in six different ways, namely:

1. Significance to CPC: This study will help CPC leverage on alternative energy which will reduce operations costs in terms of energy consumption and make the value chain leaner if implemented by CPC, thereby improving profitability in cost leadership and in the long run aid in reducing energy wastage, defects, transportation costs and pollution.

2. Significance to academics: It will also provide an insight into concepts such value chain analysis and lean manufacturing analysis of a manufacturing company for the use by scholars in similar future studies.

3. Significance to the industry: The case study will go a long way into promoting the essence in using green logistics by manufacturing companies in Ghana to reduce the level of energy consumption in the usage of electricity and fossil fuel.

4. Significance to the economy: If concepts in this study are adopted by manufacturing companies to use energy more efficiently, the pressure on electricity and fossil fuel availability will be reduced considerably to allow the supply matchup to the general public’s demand.

5. Significance to the society: It will help the areas in Ghana without electricity to have a possibility of being supplied hence improving the society through reliable energy supply.

6. Significance to the environment: The adoption by manufacturing companies may translate to other logistics companies and promote the importance of alternative energy such as biofuel instead of fossil fuel thereby reducing pollution in the environment and protecting the environment. Renewable energy, will also force its suppliers to become more environmentally sustainable.

CHAPTER 2

LITERATURE REVIEW

2.1 Supply Chain Management

To better define supply chain management, an overview of supply chain is necessary to gain a better understanding. A supply chain can only be created if there are more than one participating groups or individuals or companies. Supply chain is therefore referred to as a cluster of interconnected network of entities that add value to a stream or flow of converted inputs from their source of origin to the end products or services that are demanded by the end user or end consumer.

The three basic flows of a supply chain are:

Material Flow: A chocolate-making supply chain will have the cocoa beans brought from farms at the beginning of its supply chain and cocoa semi-finished and finished products such as chocolate confectionaries at the end of supply chain. The continuous flow of cocoa beans being transformed through the chain and end up as chocolate ties the whole supply chain together and defines its clear boundary. A chocolate-making supply chain can never be confused with a furniture manufacturing supply chain because the material flows in between are clearly different and never will they cross with each other.

Information Flow: All supply chains have and make use of information flows. Throughout a supply chain there are multitudes of information flows such as demand information flow, forecasting information flow, production and scheduling information flows, and design information flows.

Figure 1.0A typical supply chain (Source: https://www.smartsheet.com/integrated-supply-chain-management-vertical-and-horizontal)

Finance Flow: This represents the exchange of money from customers to the backwards flow of the supply chain and the also money from manufacturers to suppliers of raw materials. It primarily flows backward but can occur in the forward motion in the supply chain when there is a refund for goods sold.

Supply chainmanagement is therefore the planning, integration, organization and management of the flow of inputs such as materials, information, people and finances across firms within a supply chain to source, transform and deliver goods and/or services to end consumers to meet demand and customer satisfaction.

2.2 Logistics Management

Logistics is the integrated management of all the activities required to move products through the supply chain. For a typical product, this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. The logistical activities comprise transport, storage, inventory management, materials handling and all the related information processing. The main objective of logistics is to co-ordinate these activities in a way that meets customer requirements at minimum cost.

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

2.3 Green Logistics

Green logistics is a form of logistics which is calculated to be environmentally and often socially friendly in addition to economically functional. It describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption. It is the aim to create a sustainable company value using a balance of social, economic and environmental efficiency.

Pollution may occur from the stage of designing to the stage of packaging and shipping and even during retrieval of the product. This shows that green logistics does not only focus on transportation but also may include electricity, water, heating and fueling efficiencies as well as recycling, reusing, waste elimination and defects reduction (İpekçi, 2013).

Figure 1.1 Green Logistics Operations (Source: İpekçi, 2013)

2.3.1 Paradoxes of Green Logistics

When adopting green logistics, there are some possible inconsistencies that may arise. The issue is that green logistics is supposed to be environmental friendly, but logisticsin itself is not very green because of pollution and waste that it creates. So, when adapting green logistics there are some paradoxes that arise as given below:

Cost:The cost of operations may increase when green alternatives are put in place and this will protect the environment but may not reduce cost.

Reliability: Being able to deliver to customers quickly is one of the competitive priorities of most firms. The use of greener options such as biofuel have been attributed to low speed for deliveries whiles being expensive and hence firm resort to fossil fuel for their transport for deliveries.

Warehousing: The number of deliveries when high reduces the need for warehousing but has a tool on the transport system since more vehicles are needed to move the items rather than storing them. This causes additional pollution.

2.4 Lean Manufacturing

The lean in lean manufacturing refers to the elimi­nation of all waste. Waste is defined as any activity that creates no value (Morton and Pentico, 1993; Womack and Jones, 1996) and value is defined by the customer. The lean approach for manufacturers is to improve their organizations by focusing on the elimination of any and all muda; the Japanese word for waste.

Ray et al. (2006) identified energy consumption as an additional area of significant waste in operations industries in which a primary raw material is converted with energy-inten­sive processes. In such cases, a lean manufacturing approach should include a focus on efficient energy consumption and/or product conversion. A waste-free process is a process that is working correctly. A firm’s focus must be on work that creates value for the ultimate customer. Providing the wrong prod­uct or service, even with high efficiency and of high quality, is wasteful. Encouraging cost effective investment in energy efficiency methods and technologies may give good results of maintaining high quality product with reduced cost. This is main reason that all the organizations focused on Toyota Production System (TPS) or otherwise called as Lean manufacturing. It is a production system that focused on eliminating the wastes and other non-value adding activities. Lean is a world leading strategy that has proved its worthiness in industrial environments over a long period of time (Moreira, Alves & Sousa, 2010).

2.4.1 Categories of Waste

There are several categories of waste that are addressed by the lean theory, these being:

1. Overproduction/early production: producing what the customer does not want. Although its intention comes from a place of optimism, it is a huge waste. Overproduction is very costly, both in revenue and storage, and also makes it difficult to notice any defects. From a manufacturing point of view, only produce what is ordered and can be sold and shipped immediately.

2. Waiting: idle time when no value is being added to the product or service. Any waiting being done is not adding value to the actual product. This usually happens when the flow of materials in the process is slow, causing production to be slow because waiting occurs. One process should link to the next and have a flow.

3. Transportation: unnecessary moving or han­dling, delays in moving material.This occurs when moving product from one process to another. This action doesn’t add any value to the product. Mapping out flow can help this.

4. Inventory: unnecessary stored materials, WIP, finished products. This is a result of waste, the signs of overproduction, and waiting. Since too much inventory will hide many issues, many flaws go unnoticed until the problem has been exacerbated. 

5. Motion: movement of equipment, inventory, or people that adds no value. Any excess movement such as walking, lifting, bending, or stretching has to do with actual layout. Once again, this can be an accident or injury waiting to happen.

6. Over processing: unnecessary processing and procedures that add no value. This happens when using high precision machinery, when a simpler more effective tool would work just fine.

7. Defects: producing defective products. This is the bottom line, and if re-inspecting is a constant, that is an indication of significant loss of the total manufacturing cost.

These activities add cost and do not cause a product to be transformed into a more complete product, from the customer’s vantage point. They are non-value-added activities, as they add no value from the customer’s point of view. Reducing manufacturing process energy consumption is not an explicit goal of Lean. However, there are clear links between the energy use and wastes in the production process, such as the use of electricity to heat, cool, and light underutilized inventory spaces (Sciortino, Watson & Presnar, 2009).

2.4.2 Relationship between Lean and Energy use

According to EPA (2007), “substantial energy savings typically ride the coattails of lean. By eliminating manufacturing wastes such as unnecessary processing and transportation, business also reduce the energy needed to power equipment, lighting and cooling.” Energy is a vital input to most production processes and value streams. By thinking explicitly about unnecessary energy use as another “deadly waste”, Lean implementers can significantly reduce costs and enhance competitiveness, while also achieving environmental performance goals. Energy wastes increase the costs of business. The energy use hidden in lean wastes is shown below in Fig 1.2.

2.4.3 Catego­ries of activities

Steps that create value: For manufacturing, these are the processes that change the raw material to the form for which custom­ers will pay you; that is, steps that bring the material closer to the final product.

Steps that create no value but are necessary: For manufacturing, these might include quality inspections, waiting for processing, and some transportation.

Steps that create no value and can be imme­diately eliminated: If the activity does not fall into one of the two preceding categories, then it needs to immediately be stopped.

Fig 1.2 Energy use hidden in lean wastes (Source: Gogula et al, 2011)

2.4.4 Energy Value Stream Mapping

Addition of energy information into the VSM allows everyone to easily understand the complete impact that the value stream has on the operational performance and energy efficiency (Kuriger & Chen, 2010). Having the energy use of the process along with lean related metrics like cycle time, change over time and others helps the experts to have better understanding of the process and its energy concerns. It also helps the VSM team to brainstorm and make necessary improvements for the proposed “future state”. Adding the average energy use of all the processes to the process data boxes in the VSM helps to identify the bottlenecks or key areas for improvement.

2.4.5 Value Chain Analysis

A value chain is basically the activities that add value during the movement of raw materials to the conversion process according to market requirements and finally to the customer through a delivery and sales point with additional after sales services (Wheelen & Hunger, 2012).

The value chains of most industries can be split into two segments, upstream and downstream segments. In the cocoa industry, for example, upstream refers to cocoa farming, drying and moving of the cocoa beans to the Licensed Buying Companies (LBC) and Cocoa Marketing Company (CMC), and downstream refers to processing the cocoa beans, transporting and marketing semi-finished and finished products to distributors and retailers.

Fig 1.3 A typical value Chain (Wheelen& Hunger, 2012)

CHAPTER THREE

PROFILE OF CASE STUDY AND METHODOLOGY

3.1 Introduction

This chapter will introduce the profile of the case study company and methodology of both the qualitative and quantitative methods to address ways in reducing processes within the value chain and energy consumption so as to make the manufacturing processes of Cocoa Processing Company Limited (CPC) lean and green whiles ensuring continual improvement by the use of the value chain analysis (VCA) and trend analysis for electricity consumption data of CPC.

3.2 Profile of Case Study Company

Cocoa Processing Company Limited (CPC) based in Tema, near Accra was established in 1965. It was incorporated as a limited liability company in November 30, 1981 and publicly listed on the Ghana Stock Exchange on February 14, 2003. CPC comprises of three factories: Two Cocoa Processing Factories and a Confectionery Factory (Cocoa Processing Company Limited, 2019). CPC is the leading producer of finished and semi-finished cocoa products such as the flagship product; Kingsbite Chocolate and the famous Pebbles under the Golden Tree brand and the new Nutty Choc. Their main competitors are Niche Cocoa Industry Limited, Afrotropics, Cargill Ghana Limited, Cocoa Touton Processing Company Olam.

3.2.1 Vision

“To be a first class food factory of international repute”

3.2.2 Mission

“To process cocoa and delight customers with the full health benefits of world class cocoa/chocolate products”

3.2.3 Core Values

Quality
They pursue the highest quality standards in their operations and strive to deliver the highest quality products and services to their consumers.

People
The workers are their most valuable assets and they believe in achieving synergy through teamwork. CPC strives to continuously develop their human resource to enable them achieve excellence.

Customer-Oriented
They aim at customer delight and not mere customer satisfaction.

Integrity
Honesty, transparency and accountability are their hallmark; these constitute the essence of their existence.

Health and Safety

CPC is committed to the health and safety of their staff, visitors and consumers through a safe and secure work environment and product safety.

Environment

They are committed to continuous investment in environmental preservation and management. They work in close collaboration with the relevant agencies to ensure compliance.

Social Responsibility

They care about their communities and strive to enhance their well-being.

3.2.4 Products

3.2.4.1 Semi-finished Products

These are made from premium Ghana Cocoa Beans. The beans are sorted, roasted, winnowed and milled to produce cocoa liquor. Cocoa liquor is pressed to release the butter and leave a residue of cocoa cake with 10-12% butter. The cocoa cake is kibbled and sold as kibbled cake or milled and sold as cocoa powder (CPC, 2019).

Figure 1.4 Carton of the Cocoa LiquorFigure 1.5 Bars of the Cocoa Butter

Figure 1.6Bag of the Cocoa CakeFigure 1.7 Bag of the Cocoa Powder

3.2.4.2 Confectionery Products

The flagship products are the Golden Tree deluxe chocolate bars. There are seven different brands namely, Kingsbite, Oranco, Akuafo, Coffee Choc, Portem Nut, Portem Pride, Tetteh Quarshie and Aspire. They are currently produced sizes in 20g, 50g and 100g.

Produced from 100% Ghana premium cocoa beans, Golden Tree confectionery products have no cocoa butter substitutes. Since their first chocolate bar was produced in February 1965, Golden Tree chocolates have not ceased to delight discerning consumers. The Golden Tree chocolate bars are specially produced to withstand the hot tropical climate of Ghana and elsewhere (CPC, 2019).

Figure 1.8 Bars of the KingsbiteFigure 1.9 Bars of the Oranco

Figure 2.0 Bars of the Akuafo BarFigure 2.1 Box of the Coffee Choc

Figure 2.2 Bars of the Portem PrideFigure 2.3 Bar of the Portem Nut

Figure 2.4 Bars of the Tetteh Quarshie BarFigure 2.5 Bars of the Aspire

Figure 2.6 Sachet of the PebblesFigure 2.7 Tub of the Choco Delight

Figure 2.8 Royale Cocoa PowderFigure 2.9 Alltime Cocoa Powder

Figure 3.0 Vitaco Cocoa PowderFigure 3.1 Sample of the Choco Bake

3.3 Methodology

Methodology is the general research strategy that outlines the way in which this research project will be undertaken and, among other things, identifies the methods to be used. This case study made use of the mixed methods approach for its methodology by combining both qualitative and quantitative methods to identify and analyze data.

3.3.1 Research Design

The research will employ both the qualitative and quantitative methods to identify the needs of the customers which will help analyze the value chain of CPC. A survey was conducted to gather information and the findings were represented by the use of histograms to illustrate the needs of the customers. This provides a fair idea of what the customers require in terms of set parameters such as price, availability, transaction speed, accessibility and quality in terms of ingredients, packaging and new product offerings. Also monthly production levels, electricity consumption levels and diesel consumption levels were retrieved from CPC for each quarter within the timeline of 2015 to 2017 whiles using trend analysis to forecast the annual electricity and diesel consumption levels against the production levels of CPC.

3.3.1 Qualitative Analysis

3.3.1.1 Research Instrument and Sample Design

Information about customers’ requirements was obtained randomly from customers and potential customers through a survey using an online platform called Google forms.

There were two (2) different settings chosen with twenty (20) respondents so as to utilize the stratified sample method to gain information. The respondents were randomly selected and interviewed to access their level of understanding of the products offered by CPC and the parameters indicated in the survey. These two (2) settings were chosen with perspective from the internal and external customers.

3.3.1.2 Data Collection

Information from customers and potential customers was collected by the use of the above mentioned online platform and the sample population was Sixty (60) respondents in total. This was appropriate due to the randomness of the sample design to give a fair idea of the needs from respondents internally at Cocoa Processing Company Limited (CPC), Cocoa Marketing Company Limited (CMC) and externally at Ghana Institute of Management and Public Administration (GIMPA) and the general public. Amongst the sixty (60) respondents, fifteen (15) were from CPC, fifteen (15) fromCMC, fifteen (15) from GIMPA and the last fifteen (15) from the general public.

3.3.1.3 Data Analysis

Out of the total number of respondents, 54 were customers and 6 were potential customers or non-customers as shown in the appendix of chapter eight of this case study. The 54 responses indicated that 44.4% had price issues with the products, 33.3% had issues with accessibility to the products at the different sales outlets and the factory itself whiles 24.1% had issues with the availability of preferred products especially during festive seasons. Also 5.6% had issues with transaction speed and 22.2% had no issues with the purchase of goods produced by CPC. On the other hand, the remaining 6 respondents indicated that they did not purchase goods mostly due to the price and availability; one commented “we are in a cocoa producing country and the chocolates and other products must be very affordable at the lowest possible price for all to purchase and for Golden Tree to beat the competition.

3.3.1.4 The Customers

According to Mr. Oboubi of CPC, there were two (2) groups of customers realized for Cocoa Processing Company Limited (CPC).

They are the internal and external customers. The internal customers are the people or groups of people who work within Cocoa Processing Company Limited (CPC) and Ghana Cocobod as a whole. The external customers are the individuals or groups who work outside CPC and Ghana Cocobod but may or may not have a good knowledge of the products and services offered depending on their relationship with CPC. Examples are competitors, suppliers, distributors and the general public. Understanding customer needs is essential to match a firm’s resource capability so as to achieve an efficient operations strategy.

A large number of the customers of CPC need:

1. Lower prices for the offerings.

2. Accessibility and availability to all offerings.

3. Improvement in advertisements and sales promotions to provide visibility on offerings.

4. Improvement in packaging and periodic additions of new offerings to intrigue customers.

3.3.1.5 Value Chain Analysis of Cocoa Processing Company (CPC)

The value chain of Cocoa Processing Company will help us to better understand the processes within the Primary and supporting activities that have an impact in value creation for meeting customer needs. The customer needs and the value chain of CPC can be seen to revolve mainly around the Primary activities.

The creation of the consumer products begins at operations where raw materials are converted into semi-finished and finished products. Lower price for products and services can be achieved if cost of operations is streamlined across the primary activities. Accessibility and availability of products can be improved by performing intensive distribution, advertisement and sales by the outbound logistics and marketing and sales department. Periodic additions of new product offerings and better packaging can be improved my operations and R&D. It is evident that across the value chain, energy is consumed from the burning of fuel by trucks during inbound logistics to the use of electricity in heating and cooling during processing, warehousing, distribution and after sales service.

Periodic additions of new product offerings and better packaging can be improved my operations and R&D. It is evident that across the value chain energy is consumed from the burning of fuel by trucks during inbound logistics to the use of electricity in heating and cooling during processing, warehousing, distribution and after sales service.

The cocoa factory processes in fig 3.3 has 14 processes that can be streamlined or made leaner to reduce the number of process centers, machinery, movement and material handling. There are certain processes that are done by separate machinery which can be done once or collectively.

Figure 3.2Value Chain for CPC

Figure 3.3 Process flow for semi-finished products from Cocoa Factory (Current)

The duplicate processes identified were the heat treatment, tempering, breaking and winnowing. The cocoa factory processes in fig 3.4 has 11 processes which is much leaner than the current process flow. This represents a leaner flow which can be further improved by reducing the number of processes and stations, hence reducing lead-times, energy consumption and ultimately cost reduction.

Figure 3.4 Process flow for semi-finished products from Cocoa Factory (Future)

3.3.2 Quantitative Analysis

Addition of energy information into the VSM allows everyone to easily understand the complete impact that the value stream has on the operational performance and energy efficiency (Kuriger & Chen, 2010). Unfortunately, energy consumption data for individual equipment at individual stations were not available at the time of this study and would have immensely contributed to making the value stream of CPC leaner; by pointing out sectors that consumed high levels of electricity and added little or no value to the primary activities of CPC. The electricity consumption data for such individual equipment and stations can however be pursued in future studies similar to this, so as to provide a deeper insight into the lean mindset of green logistics.

Cocoa Processing Company Limited has a production capacity which far exceeds its output. The tables below have data to show production levels for the past three years.

3.3.2.1 Data Collection

The total electricity consumption and diesel fuel consumption for each of the four quartersin a year according to their monthly production levels for the years 2015, 2016 and 2017 were collected from CPC.

Quarter	Year 1: 2015	Monthly Production Levels (units)	Total Electricity Consumption (kWh)	Total Diesel Fuel Consumption (Ltrs)
1st	Jan	503.602	558,590	119,500
	Feb	98.14	537,030	124,000
	Mar	118.766	632,400	36,000
2nd	Apr	706.038	376,410	16,500
	May	1,184.783	364,360	100,500
	Jun	786.337	618,600	120,800
3rd	Jul	484.504	749,700	116,400
	Aug	641.646	690,560	103,000
	Sep	304.036	707,150	97,500
4th	Oct	80.067	704,540	77,500
	Nov	100.373	436,830	63,100
	Dec	671.042	452,280	99,200
	Total	5,679.334	6,828,450	1,074,000

Table 1.0 Energy Consumption and Production Levels for CPC (2015)

Quarter	Year 2: 2016	Monthly Production Levels (units)	Total Electricity Consumption (kWh)	Total Diesel Fuel Consumption (Ltrs)
1st	Jan	323.714	580,200	78,396
	Feb	323.714	412,590	41,500
	Mar	494.012	602,860	85,500
2nd	Apr	51.457	473,490	73,500
	May	55.01	489,740	73,000
	Jun	1,057.618	787,490	149,000
3rd	Jul	1,304.423	940,310	7,500
	Aug	1,911.329	1,035,220	16,000
	Sep	2,417.400	1,126,400	17,000
4th	Oct	2,075.282	1,053,540	192,000
	Nov	1,715.282	9,692,640	110,500
	Dec	1,573.193	960,950	4,900
	Total	13,168.427	18,155,430	848,796

Table 1.1 Energy Consumption and Production Levels for CPC (2016)

Quarter	Year 3: 2017	Monthly Production Levels (units)	Total Electricity Consumption (kWh)	Total Diesel Fuel Consumption (Ltrs)
1st	Jan	2,171.54	1,031,390	103,500
	Feb	2,164.99	555,860	2500
	Mar	593.722	714,800	17,500
2nd	Apr	1,394.635	169,544	45,500
	May	1,510.736	971,650	42,000
	Jun	2,118.77	1,106,400	129,500
3rd	Jul	2,133.587	1,105,770	101,000
	Aug	2,704.364	1,196,940	118,000
	Sep	2,519.401	972,006	100,500
4th	Oct	2,127.70	1,163,760	143,863
	Nov	2,167.86	1,063,760	147,582
	Dec	1,731.88	861,696	128,429
	Total	2,1390.694	10,913,576	1,079,874

Table 1.2 Energy Consumption and Production Levels for CPC (2017)

3.3.2.2 Data Analysis

The year 2015 saw its highest production level in May; amounting to 1,184.783 metric tonnes (MT) of finished and semi-finished products whiles the highest total electricity consumption was in July; amounting to 749,700 kilo watts per hour and the highest total diesel consumption was in February; amounting to 124,000 liters. Also the year 2016 saw its highest production level in September; amounting to 2,417.400 metric tonnes (MT) of finished and semi-finished products whiles the highest total electricity consumption was in November; amounting to 9,692,640 kilo watts per hour standing as the highest amongst the three years and even that of the previous year 2015 and the highest total diesel consumption was in October; amounting to 192,000 liters.

The year 2017 saw its highest production level in August; amounting to 2,704.364 metric tonnes (MT) of finished and semi-finished products whiles the highest total electricity consumption was in August; amounting to 1,196,940 kilo watts per hour and the highest total diesel consumption was in November; amounting to 147,582 liters.

YEAR	Total Production Levels (MT)	Total Electricity Consumption (kWh)	Total Diesel Fuel Consumption (Ltrs)
2015	5,679.334	6,828,450	1,074,000
2016	13,168.427	18,155,430	848,796
2017	21,390.694	10,913,576	1,079,874

Table 1.3 Annual Energy Consumption and Production Levels for CPC

From the above Table 1.3it was observed that with the increase in production from 5,679.334 MT in the year 2015 to 21,390.694 MT in the year 2017 due to the increase in demand from increasing the populous causes the increase in energy consumption from 6,828,450 kWh in the year 2015 to 10,913,576 kWh in the year 2017. Fuel consumption however was low and remained stable within the range of 1,074,000 liters in the year 2015 to 1,079,874 liters in the year 2017.

Figure 3.5 The trend of electricity and fuel consumption at CPC (2015-2017)

From Table 1.3 and trend chart Figure 3.5, we also observe that the rate of electricity consumption was highest with a value of 18,155,430 kWh and is rising and hence will contribute to the cost of operations of CPC. The rate of fuel (Diesel) consumption is rather low and stable with a flat trend line as compared to that of electricity with an increasing trend line.

CHAPTER FOUR

ENVIRONMENTAL AND SITUATIONAL ANALYSIS

4.1 Introduction

Environmental analysis is a process that identifies all the external and internal elements which can affect a firm’s (in this case Cocoa Processing Company) performance. It entails assessing the level of threats or opportunity the factors might present whiles identifying the weaknesses and strengths that a firm has internally.

Before we start scanning the external and internal environment, it is necessary that an overview of the primary activities which most often directly adds value to products and services is provided to give an idea of what goes on at Cocoa Processing Company (CPC).

4.2 Overview of Primary Activities

Cocoa Processing Company Limited (CPC) outsources most of its raw materials and services so as to focus on its core competency which primarily is production of finished and semi-finished products. It therefore outsources its daily transportation, recycling, maintenance and cleaning of production floor. This has come a long way to help them maintain the position as market price leaders in Ghana for the chocolate-making consumer market.

Cocoa beans are sourced from Cocoa Marketing Company (CMC) by the procurement and marketing department of Cocoa Processing Company Limited (CPC) as and when the stock level of cocoa bags reaches the re-order point. Loading and hauling of the bags of cocoa from Cocoa Marketing Company (CMC) for the transportation to Cocoa Processing Company Limited (CPC) is done by third party logistics. When the bags of cocoa arrives at CPC, the marketing department of CPC counts and inspects the bags of cocoa whiles it is being offloaded on to a plastic sheeting which is laid on the ground to make sure the quantity, category and grade match what is stated on their waybills. Afterwards the bags of cocoa are stacked on pallets in the CPC warehouse if they meet the requirements. The Quality Assurance department also takes samples of the cocoa beans from the bags at the CPC warehouse to assess the free fatty acids (FFA), moisture content and pesticide residue analysis (PRA) of the cocoa beans in their laboratories to ascertain the quality and assign the beans to the appropriate product category. The appropriate FFA standard provided by CPC is about 1.65-1.75 mols/dm3.

Materials handling is mostly done by CPC marketing and procurement personnel after receipt of the cocoa bags. Other raw materials such as plastics, paper and aluminum foil are sourced locally and from overseas by the procurement department. CPC has a production capacity of 64,500 metric tonnes to meet the demands of customers. The cocoa beans which are scheduled to be used for production are cut and stored in large silos of capacities that range between (900-1000) tones. At the cocoa factory activities such as cleaning, roasting, breaking, winnowing, milling, heat treatment, pressing, alkalization, filtration, pulverization, tempering and waste disposal are carried out.

The production unit has a warehouse that is directly linked to it for storing semi-finished and finished products so as to prevent external air from entering the production floor. This also allows goods that are ready for storage to be moved directly from the production floor with ease by stacking on pallets and transported by forklifts to the internal warehouse. The quality assurance department once again comes in to take samples of each batch produced to perform a shelf life analysis of the products to make sure they meet the required standards. The laboratory checks for microbiological entities that may shorten the lifespan of the product among other checks such as humidity tests and temperature tests which can negatively affect the shelf life of a product. CPC does well to wrap the stacks of finished confectionaries except for semi-finished products which are packaged with multiwall papers for safety and prevention of contamination.

The Marketing department of CPC overseas the shipment and distribution of finished and semi-finished products to counties within Europe and other continents. The consumer shop at CPC sells products to the general public, especially confectionery products and also provides services to individuals or firms for events and other occasions. It has a clinic to address the health issues of workers.

CPC is ISO 9001 and ISO 22000 certified by the Ghana Standards Authority (GSA) and Société Générale de Surveillance (SGS) among other certifications and is currently working on other product lines and the certification of Halal and Kosher standards to broaden its international market. Inspection of warehouses of the key distributors is done periodically by the quality assurance department in collaboration with the process monitoring and evaluation department of CPC to ensure that they meet all necessary standards and they also educate employees on how to store the products. Monitoring and evaluation together with the marketing department also handles all customer complaints and feedback. CPC does not handle recycling for its reverse logistics but rather it outsources third party recycling companies such as Fine Print and Zoomlion Ghana to recycle its paper and plastics. D. Oboubi (personal communication, January 04, 2019).

Below is a process flow for the operations at CPC’s cocoa factory which is responsible for the production of semi-finished products such as cocoa liquor, kibbled cake, cocoa powder and cocoa butter.

4.3 Internal Analysis

Strengths and weakness identified whiles performing an internal analysis of Cocoa Processing Company Limited, which represent the favourable and unfavourable factors that affect the company to be able to gain a sustainable competitive advantage. The concepts used during the internal analysis are the Value Chain Analysis and SWOT Analysis.

4.3.1 Value Chain Analysis (VCA)

Cocoa processing company (CPC) has expertise is in processing cocoa beans, which is where the company started. It integrated forward by using its semi-finished products to make chocolate but its greatest capability still lay in getting the greatest return from its cocoa factory activities. During the value chain analysis, we need to know exactly what the customer’s needs are.

A large number of the customers of CPC need:

1. Lower prices for product offerings.

2. Accessibility and availability to all product offerings.

3. Sales promotions to provide visibility on products and services.

4. Improvement in packaging.

5. Periodic additions of new offerings to intrigue.

4.3.1.1 Value Chain Analysis for CPC

The customer needs and the value chain of CPC can be seen to revolve mainly around the Primary activities.

The creation of the consumer products begins at the inbound logistics for Quality Control Company Limited (QCC) and Cocoa Marketing Company Limited (CMC), where quality checks are done to ensure premium quality before the bags of cocoa beans are sent to CPC for usage in operations where raw materials are converted into semi-finished and finished products then packaged. Lower price for products and services can be achieved if cost of operations is streamlined across the primary activities. Accessibility and availability of products can be improved by performing intensive distribution, advertisement and sales by the outbound logistics and marketing and sales department. Periodic additions of new product offerings and better packaging can be improved my operations and R&D. It is evident that across the value chain energy is consumed from the burning of fuel by trucks during inbound logistics to the use of electricity in heating and cooling in processing, warehousing, distribution and after sales service.

4.3.2 SWOT Analysis

Strengths: The strengths of CPC represent its resource capabilities or core competences that it focuses on and has to its advantage so as to satisfy its customers and compete on the market. The strengths reinforce its competitive priorities such as quality and cost so as to give CPC a unique image in the mindset of each and every customer they serve. Five strengths were identified during the SWOT analysis of CPC and are listed as:

1. Processing of cocoa beans into semi-finished and confectionery products.

2. Exports about 95% of its semi-finished products at a premium price to Europe and America.

3. Nearness of factory to raw material resources and shipping harbor for inbound and outbound activities.

4. Outsourcing of some activities allows CPC focus on core competency of processing.

5. Tax exemption due to location of the facility in an export free zone.

Weaknesses: The weaknesses of CPC represent the issues that they are trying to solve or short falls in their business operations that they may have noticed or not noticed. This usually creates customer dissatisfaction and may push away loyal and potential customers. It normally has to do with their decision areas such as supply network, capacity, process technology and lastly their organization and development. Five weaknesses were identified during the SWOT analysis of CPC and are listed as:

1. Increase in cost of operations due to high electricity and fossil fuel consumption.

2. Production output is currently 21,810MT annually out of the 64,500MT capacity.

3. Market price is competitively low but still high for customers.

4. Marketing needs improvement in visibility, availability and responsiveness.

5. No international distributors or dealers; dependent on few local dealers.

4.4 External Analysis

Opportunities and threats are identified whiles performing an external analysis of Cocoa Processing Company Limited, which represent the favourable and unfavourable factors that affect the company to be able to gain a sustainable competitive advantage. The concept used during the internal analysis is the PEST analysis.

4.4.1 PEST Analysis

The PEST analysis is an external analysis tool that will access the opportunities and threats. It is an acronym represent the Political/Legal, Economic, Socio-cultural and technological assessments of the external environment of CPC which aid in identifying the opportunities and threats associated with CPC from the external environment. In most cases there are other external factors that are examined in the area of Demographical, Physical/Geological and the Global environment. Factors within the above mentioned preambles are listed to point out the factors within the general external environment which directly and indirectly will affect the success of CPC as a firm in Ghana and on the global front.

Political/Legal Environment

1. Stability of the government.

2. Government support for cocoa processing sector.

3. Laws on pollution and energy usage (environmental and global warming legislation).

4. Tax laws

5. 20% discount on light crop cocoa beans for processors by the Government.

6. Discount on main crop cocoa beans for processing companies.

Economic Environment

1. Low patronage due to high unemployment rate and low income.

2. Prices and unreliability of electricity, fuel and machinery.

3. Export free zones exemptions.

4. Interest rates.

5. Foreign exchange.

6. Illiteracy rate.

7. Inflation.

8. Untapped cocoa beverage and chocolate market in Ghana.

Socio-cultural Environment

1. Location of factory

2. Developing nations desire for goods produced by CPC in advertisements.

3. Encouraging health benefits of consuming cocoa products from CPC.

Technological Environment

1. Advancements in processing (Automation).

2. Research and development into cocoa butter substitutes/equivalents.

3. Increasing importance of computers and IT.

4. The use of energy saving equipment to reduce operational costs.

5. Availability of renewable energy sources.

Demographics

1. Purchase lifestyle of made in Ghana goods by Ghanaians.

2. Increase in population creates a larger market size.

Physical Environment

1. Unreliable electricity and fossil fuel supply.

2. Decrease in cocoa bean production due to exit of farmers into the galamsey business.

3. Availability of light crop cocoa beans.

4. Additions of sales point for CPC at Accra, West-hills and Junction Malls.

5. Weather conditions for cocoa crop seasons.

Global Environment

1. Increase in processing companies on the international market.

2. Desire for cocoa products on the international consumer market.

3. Aggressive competitors in the local market such as Niche cocoa, Barry and Olam.

4. Trade barriers in international marker.

Opportunities: The opportunities that may arise for CPC represent the factors that can offer improvements or give a competitive advantage if pursued so as to satisfy its customers and compete on the market. They are favourable external factors that provide better options for CPC to tackle its internal weaknesses so as to change the bad image in the mindset of each and every customer they serve into better attributes. Sevenopportunities were identified during the PEST analysis of the external environment of CPC and are listed as:

1. Availability of renewable energy sources.

2. 20% discount on light crop cocoa beans for processors by the government.

3. Increase in population creates a larger market size for untapped cocoa beverage and chocolate market in Ghana.

4. The use of energy saving equipment to reduce operational costs.

5. Additions of sales point for CPC at Accra, West-hills and Junction Malls.

6. Desire for cocoa products on the consumer market.

7. Discount on main crop cocoa beans for processing companies.

Threats: The threats that may arise for CPC represent the factors that can disrupt the success of CPC if not addressed so as to prevent the dissatisfaction of its customers and compete on the market. They are unfavourable external factors that can bring about problems for CPC which may affect its internal strengths and degrade the reputation or good image in the mindset of each and every customer they serve. Nine threats were identified during the PEST analysis of the external environment of CPC and are listed as:

1. Prices and unreliability of electricity, fuel and machinery.

2. Weather conditions for cocoa crop seasons.

3. Increase in processing companies on the international market.

4. R&D into cocoa butter substitutes/equivalents.

5. Availability of light crop cocoa beans.

6. Stability of government.

7. Laws on pollution and energy usage (environmental and global warming legislation).

8. Low patronage due to high unemployment rate and low income.

9. Purchase lifestyle of made in Ghana goods by Ghanaians.

4.5 Critical Environmental Factors

Critical environmental factors (CEF) are the factors that have the highest impact on the strategic intent of a firm, in this case Cocoa Processing Company LIMITED (CPC). The issues priority matrix is used to assess the probability of factors occurring and the level of impact the factors have by identifying and using the internal factors analysis summary (IFAS) and the external factors analysis summary (EFAS) to obtain critical environmental factors.

4.5.1 Internal Factors Analysis Summary (IFAS)

1. Processing of cocoa beans into semi-finished and confectionery products.

2. Increase in cost of operations due to high electricity and fossil fuel consumption.

3. Production output is currently 21,810MT annually out of the 64,500MT capacity.

4. Tax exemption due to location of the facility in an export free zone.

5. Nearness of factory to raw material resources and shipping harbor.

6. Improvement in visibility, availability and responsiveness.

4.5.3 External Factors Analysis Summary (EFAS)

1. Availability of renewable energy sources

2. 20% discount on light crop cocoa beans for processors by the Government.

3. Increase in population creates a larger market size for untapped cocoa beverage and chocolate market in Ghana.

4. Unreliable electricity and fossil fuel prices and supply

5. Desire for cocoa products on the international market.

6. Increase in processing companies on the international consumer market.

7. Laws on pollution and energy usage (environmental and global warming legislation).

4.5.2 Internal Issues Priority Matrix

Figure 3.6Internal Issues Priority Matrix for CPC

4.5.4 External Issues Priority Matrix

Figure 3.7External Issues Priority Matrix for CPC

4.5.5 Impact of Critical Environmental Factors on Strategy Formulation

Amongst all the critical environmental factors, it is evident that “The increase in cost of production due to high electricity and fossil fuel consumption” has a great effect on profitability and productivity whiles the main vision of being “To be a first-class food factory of international repute” may be compromised.

Cocoa Processing Company has its competitive priorities set on quality and cost due to its premium products but it is falling behind on cost as a competitive advantage. From the survey, it is evident that most customers had issues with the prices of their commodities. I strongly believe that based on the data on the dropping prices of procuring renewable energy and the unreliability and increase in energy costs, CPC can capitalize on alternative sources of energy and installation of energy saving equipment so as to reduce reliance on electricity and fossil fuel which are currently unreliable and having increasing prices.

It will go a long way for CPC to leverage on these renewable energy options to save hugely on cost of energy consumption across its value chain and even among all the forms of waste. In the next chapter we can therefore look at alternatives such as:

1. Invest into solar energy so as to harvest solar power with a solar farm that will power the factory during the night shifts and anytime there is a power outage. A recent report from Lazard shows how the costs of producing electricity from various sources are changing. Energy from utility-scale solar plants or photovoltaic solar systems (plants that produce electricity that feeds into a grid) has seen the biggest price drop; an 86% decrease since 2009.Use energy saving equipment to reduce the amount of energy consumed during operations and use waste form the production process to produce energy in the form of biomass. Invest into bioenergy such as biomass and biofuel for reducing cost of high fossil fuel prices and also protect the environment form pollution.

2. Build a stronger relationship with the Cocoa Marketing Company Limited and other providers of raw materials so as to gain better discounts due to economies of scale. Sharing or Capacity or subcontracting orders from other firms that wish to process cocoa beans so as to gain profit for utilizing idle capacity. Starting its own dedicated cocoa farms or vertical integrating to own an appreciable number of farms from cocoa farmers whiles those farmers work for CPC to ensure that light crop is always available during its season without having to rely on cocoa beans brought from other farms.

4.6 Identification of managerial issues

The managerial issues can therefore be identified from Fig 3.6 and Fig 3.7 as:

1. Increase in cost of operations due to high electricity consumption: The prices of energy are constantly changing especially for fossil fuel and electricity. In section 3.3.2.2, it was observed that with the increase in production from 5,679.334 MT in the year 2015 to 21,390.694 MT in the year 2017 due to the increase in demand from increasing the populous causes the increase in energy consumption from 6,828,450 kWh in the year 2015 to 10,913,576 kWh in the year 2017. Fuel consumption however was low and remained stable within the range of 1,074,000 liters in the year 2015 to 1,079,874 liters in the year 2017. An operation at CPC can easily be interrupted due to the unstable nature of electricity supply in Ghana.

2. The low utilization of the total production capacity of CPC: Ghana’s cocoa processing is expanding at an impressive rate. According to Oxford Business Group, Ghana’s processing activities have increased by 69.1% to 225,000 tonnes during the last five seasons. Value addition has been a long-standing national goal in enhancing earnings from the cocoa industry in Ghana. The current goal in Ghana is to achieve a 50% processed cocoa as a proportion of the exported. Research done by Sulaiman & Boachie-Danquah, shows that the current processing capacity at CPC is 63,500MT whiles 21,810MT is utilized per annum. This goes to show that the company is under utilizing its capacity. The data collected also showed that in 2017 CPC utilized 21,390.694MT out of its 64,500MT capacity.

3. The light crop cocoa beans availability for CPC: The government and COCOBOD is still making a decision on offering discounts on main crop cocoa beans to local processing companies so as to prevent them from buying the main crop cocoa beans at the premium price offered internationally when the light crop cocoa beans are not available. COCOBOD is already supplying these local processing companies; including CPC a 20% discount on all purchases made for light crop cocoa beans but the issue here is its availability because it’s season does not yield as abundantly as the main crop cocoa beans. As it stands now, light crop cocoa beans have a yield of about 50,000 to 200,000 tonnes on the average and are reducing at a fast pace causing local processing companies to either purchase main crop cocoa beans for their operations or leave a huge portion of their capacity idle.

CHAPTER FIVE

ALTERNATIVE COURSES OF ACTIONS AND RECOMMENDATIONS

5.1 Alternatives and Recommendations

In the previous chapter the key managerial issues were identified and this chapter will identify three alternatives for each managerial issue whiles recommending an appropriate solution amongst the three provided alternatives and justification for the chosen alternative.

5.2 Issue A: Increase in cost due to high electricity and diesel consumption

CPC still relies only on hydro-electricity and fossil fuel for its primary and supporting activities which is a managerial problem that has to be solved due to unreliable supply of these energy sources; particularly electricity and diesel fuel.

CPC can go green by using efficient renewable sources of energy such as solar energy, biofuel, biomass and even wind to reduce cost of operations by supporting electricity usage since its high energy consumption contributes largely on its cost of operations.

In recent years, renewable energy has increasingly attracted public and policy attention particularly for its potential to contribute to reductions in Green House Gas emissions and cost of utilities for operations. Most interest has focused on the use of renewable energy in power generation and as biofuel. Although some attention has been paid to the potential for renewable energy, particularly biomass and solar thermal technologies to contribute to heating and cooling in residential space heating applications, their use in industrial applications has received less interest (UNIDO, 2007). Renewable energy and energy saving equipment can be widely applied in industrial applications.

5.2.1 Alternative 1: Bioenergy Source

According to the Energy Commission, Ghana introduced a bioenergy policy, which was created to substitute the country’s petroleum oil with 10% biofuel by 2020 and 20% by 2030, respectively. The country introduced this policy with the intention to utilize the vast majority of biomass resources and land for biofuel (Jatropha) that are abundant in Ghana for the generation of transport fuels and electricity. Biomass resources, such as cassava, sugarcane, maize, and Jatropha oil seeds, were identified as potential feedstock for biodiesel production in Ghana.It will therefore be an option to invest into bioenergy (biomass or biofuel) for reducing cost of fossil fuel prices and also protect the environment form pollution.

5.2.1.1 Biomass Option of Bioenergy Source

The versatility and substitution potential of biomass make this the top option for renewable energy in manufacturing. It can be used as a suitable replacement for fossil fuels, fuel for localized energy production, and is a viable producer of low, medium and high temperature heat (Note: high-temperature heat applications make up more than two-thirds of the heat demand for total process). Additional factors pertaining to the economic viability of biomass include its reduced production costs, high energy density, shorter distance for transportation, and increased options for transportation methods.

5.2.1.2 Biofuel Option of Bioenergy Source

Biofuel produced from energy crops and other resources has been touted as one of the viable sources of energy for the foreseeable future in dealing with these worldwide socioeconomic and environmental concerns (Demirbas, 2009). According to the World watch Institute, global production of biofuel has been growing rapidly in recent years. Despite this exponential increase, biofuel still represents a very small share of global energy consumption.

5.2.2 Alternative 2: Solar Energy Systems

Although the rate of Global warming is increasing, the high amount of solar energy emitted by the sun in the form of heat or ultraviolet rays makes it a feasible alternative. Ghana receives a high amount of sunshine all year round unlike other countries such as Japan, Russia and USA. It will be a good alternative to invest into solar energy so as to harvest solar power during the day with a solar farm that will power the factory during night shifts and anytime there is a power outage.

Solar thermal systems have significant options for industrial process heating worldwide. Small scale plants and industries that are less energy-intensive (like the textile and food sectors) have a significant technical and economic potential for renewable energy through solar thermal systems.

5.2.3 Alternative 3: Energy Saving Equipment

Companies that enforce the use of energy saving equipment are able to prevent the wastage of energy while equipments are not in use and even when being operated due to their ability to consume a lower amount of energy; save the firm on operation cost of running the equipment and replacement of that equipment since it usually last longer. This way, the amount ofwaste and cost is not only reduced but it gives the firm a competitive advantage in the area of cost reduction (Worrell, Angelini and Masanet, 2010).

5.2.4 Recommendation and Justification

All the above alternatives provide efficient ways of managing energy consumption and achieving results toward the objective of “The overall study objective is to analyze the trend in energy consumption levels of CPC.”

The provision of efficient energy can therefore be achieved by the solar energy systems; particularly Photovoltaic Grid-connected AC system with no battery back-up, since its capability falls within the highest consumed electric energy of 9,692,640 kWh in November, 2016 by CPC. This can be supported with or without the energy saving equipment and biofuel for transport will prove beneficial to Cocoa Processing Company in the coming future.

It has been realized that from the year 2010, the cost of generating electricity with Photovoltaic solar systems has reduced by 73% and is continuing to reduce to the rapid global advancements and increase in the manufacturing companies of these solar systems (IRENA, 2018).

Technological advancements have made these systems affordable and available with improve efficiencies. The reducing cost of procuring solar systems indicates that it may become a toll for gaining competitive advantage in terms of cost reduction. The other alternatives however only provide a partial solution to the energy costs whiles bioenergy is difficult to startup and maintain.

Figure 3.9 Global weighted averages for Solar PV (2010-2017)

Figure 4.0 Global trends in electricity generation (2010-2017)

Figure 4.1 Global weighted averages investment cost for Solar PV (2010-2017)

The trends prove that electricity generation by PV solar energy systems is highly possible and capable of powering Cocoa Processing Company Limited (CPC). Between 2010 and 2017, the global capacity weighted average total installed cost of newly commissioned utility-scale PV projects decreased by 68%, with a 10% decrease in 2017 from 2016 levels. Projects in newer markets are being developed at costs that are increasingly at par, and sometimes even cheaper than the averages in more cost mature markets (IRENA, 2018).

5.3 Issue B: The low utilization of the total production capacity of CPC

The processing of cocoa beans in Ghana is gradually increasing with the introduction of new processing firms. According to Oxford Business Group, there has been an increase of added value to cocoa beans by processors by 69.1% at a tonnage of 225,000 in five seasons previously. Adding value to 50% of the county’s cocoa beans has been one of Ghana’s main aims so as to increase patronage and price on the international market. Research done by Sulaiman & Boachie-Danquah, shows that the current processing capacity at CPC is 63,500MT whiles 21,810MT is utilized per annum and in totality all processing companies in Ghana are only utilizing about 53% of their capacity. This goes to show that the company is under utilizing its capacity. The data collected also showed that in 2017 CPC utilized 21,390.694MT out of its 64,500MT capacity.

5.3.1 Alternative 1: Sharing Capacity

In some cases, a firm would like to produce its own goods at its own standards. The better option to not leaving your goods to be produced by another firm is to rent and share the space so as to perform operations with your own dedicated staff. There are firms which wish to join the cocoa processing market in Ghana but lack the capacity to do it. In this case CPC can rent the capacity out at a fee which will ultimately add on to their income. The sharing of capacity provides another market for CPC where capacity seekers and capacity owners are able to get value for their capital resources.

5.3.2 Alternative 2: Subcontracting

CPC can consider taking on the production for firms who wish to process cocoa beans but lack the capacity to do so. This saves CPC cost and attracts revenue to the company since the underutilized part of CPC’s production capacity is put to use by producing for other firms whiles producing its own goods to the public. This alternative actually increases the profitability of CPC since the idle space is put to use.

5.3.3 Alternative 3: Sales Promotions

The provision of budgetary relief to the sales and marketing department of CPC will aid in boosting the visibility of the products so as to increase demand by raising the level of desire of customers either through recreational or healthy lifestyle positioning of the products to the general public. The reason being that capacity utilization complements market demand.

5.3.4 Recommendation and Justification

It is in the best interest for CPC to choose the subcontracting alternative to utilize capacity to its 64,500MT whiles saving costs and gaining revenue from another firm.

Alternative 2 of subcontracting orders from firms who need cocoa beans processed allow CPC to privately produce the goods for the firm and have them delivered to the firm unlike the sharing capacity which allows another firm to operate on your premises to process the cocoa beans. Also the alternative of boosting visibility by increasing sales promotions may rather lead to extra cost which at this critical stage of cost saving needs to be avoided although it would produce results as well.

5.4 Issue C: The availability of light crop cocoa beans for production

The government and COCOBOD is still making a decision on offering discounts on main crop cocoa beans to local processing companies so as to prevent them from buying the main crop cocoa beans at the premium price offered internationally when the light crop cocoa beans are not available. COCOBOD is already supplying these local processing companies; including CPC a 20% discount on all purchases made for light crop cocoa beans but the issue here is its availability because it’s season does not yield as abundantly as the main crop cocoa beans. As it stands now, light crop cocoa beans have a yield of about 50,000 to 200,000 tonnes on the average and are reducing at a fast pace causing local processing companies to either purchase main crop cocoa beans for their operations or leave a huge portion of their capacity idle.

5.4.1 Alternative 1: Support Farmers

CPC can have an initiative to support farmers to continue growing the cocoa bean producing plants to assure the availability of the light crop cocoa bean annually. This can be done in a form of occasionally providing certain farmers who have a high yield of the light crop with solar drying systems and other necessary raw materials to further improve their yield and efficiently dry cocoa beans in a cleaner and faster way. This will encourage farmers to rather expand their cocoa plantation business which will ensure the availability of the light crop cocoa beans to not only CPC but many other processing companies. It is with this little first step of social corporate responsibility that other processing companies will also contribute in the initiative so as to secure the future of the rise in cocoa beans production by farmers in Ghana when those processing firms also begin enjoying the benefits that come with supporting our local cocoa farmers.

5.4.2 Alternative 2: Vertical Integration

Alternatively, CPC can vertically integrate its supply chain network upstream towards the procurement of raw materials such as the cocoa beans from local cocoa farmers. By having large share in the cocoa plantations of farmers, CPC can have control over the provision of light crop breads annually whiles assure farmers of the benefits of staying in business and increase the availability of the cocoa beans for both main crop and light crop seasons from those particular farms all year round.

5.4.3 Alternative 3: Owned or dedicated farms

Due to the exit of farmers from the cocoa beans production or farming business CPC can make an offer to all farmers who wish to exit by selling the plantation to CPC so as to all CPC full ownership of those farms. They will be dedicated farms that will be managed by farmers employed by CPC and will supply CPC its annual light crop cocoa while generating revenue from the sale of main crop cocoa beans to the CMC.

5.4.4 Recommendation and Justification

From the above alternative it will be advisable to vertically integrate with the cocoa farmers rather than actually owning plantations. There are many more risks that will have to be bared fully by CPC if they are to dive into dedicated cocoa beans plantation; which an industry on its own. Rather sharing risk by partial ownership will depict a midrange of supporting farmers whiles owning the plantations during vertical integration. It will boost team work with the cocoa industry and ultimately allow each sector to excel at their core competencies.

CHAPTER SIX

IMPLEMENTATION OF RECOMMENDATIONS

6.1 Introduction

This chapter will provide the implementation plan for recommended alternatives that were chosen as solutions to the three managerial issues identified in the previous chapters.Section6.2 discusses the implementation of solar energy systems which is the alternative recommendation to solve the issue of increase in cost of operations due to high electricity consumption.

Section 6.3 briefly highlights on the implementation of the recommended alternative of subcontracting idle capacity by taking production orders from firms who need capacity so as to solve the issue on capacity utilization at CPC whiles section 6.4 provides the implementation of alternative recommendation for vertical integration as solution to the availability of light crop cocoa beans to CPC for production. The implementation stage of this case study is the pivotal point or the way forward in the coming future if taken up by management of CPC and COCOBOD.

6.2 Alternative Solution for Issue A: Solar Energy Systems

Solar energy systems will provide an opportunity for management to reduce cost on energy whiles creating new jobs and electricity production. This potential can only be realized, however, if specific policies are developed to create a business environment that is conducive for private and public sector investment, particularly in the food manufacturing industry. Cost reductions through harvesting renewable energy, helping areas in Ghana without electricity to have a possibility of being supplied hence improving the society through reliable energy supply and ensuring little or no reliance on hydroelectric power are the priorities. Ghana’s Energy Commission will aid in electricity production of about 10% from renewable sources by 2020 when the tax deficits are put in place for the procurement of equipment (Afrelec, 2017).

In the coming future it is forecasted that he cost of producing electricity from renewable sources; particularly solar energy system will increase. The increase in population and manufacturing industries have caused high demand of energy these past few years and the demand will continue to increase. West Africa can leverage on it tropical hot sun to produce renewable energy with solar energy systems and green forms of clean energy for the transport sector to save cost whiles protecting the environment (Vilar, 2012).

6.2.1 Implementation Plan for Solar Energy Systems

Activity	Resource	Decision Makers	Duration	Budget
Planning and Funding	Capital, Raw materials and equipments	COCOBOD	3 months	GHS 350,000
Installation and testing	Skilled persons and Solar PV equipments	CPC and Third-Party Solar Company	5 months	GHS300,000
Operation, training and maintenance	Resource Personnel and Technicians	CPC and Third-Party Solar Company	3 weeks	GHS 40,000

There are three primary technologies by which solar energy can be used for electricity. The advancements in solar energy systems production firms come have come up with and improved several efficient, effective and innovative ways to utilize the sun’s power which is abundant in Ghana. These technologies are:

1. Photovoltaic (PV): A solar energy system which directly converts light to electricity and can be stored as well for use at a later time.

2. Concentrating solar power (CSP): A solar energy system which uses heat from the sun (thermal energy) to drive utility-scale and electric turbines.

3. Heating and cooling systems: A solar energy system which collects thermal energy to provide hot water and air conditioning.

Here we will focus on Photovoltaic solar energy systems that are connected to the utility transmission grid, variously referred to as utility-connected, grid-connected, grid-interconnected and grid-intertied systems. These systems generate the same quality of alternating current (AC) electricity as is provided by your utility. Any surplus power that is generated is fed or “pushed” onto the electric utility’s transmission grid, in this case GRICO. The collected power from the sun that is not used is later fed to the system by GRIDCO when needed and hence acts like an of site battery (Washington State University Extension Energy Program, 2009).

6.3 Alternative Solution for Issue B: Subcontracting

Capacity can be an asset or liability depending on how it is used. The under utilization and idle capacity has a tendency to ad on to a firms operating cost due to the energy that will be used by that capacity whiles on standby and persons required to maintain it. When a manufacturing firm either uses its capacity to produce goods and services or dedicates a portion of capacity for producing goods for firms that lack the capacity; it ultimately produces results a in terms of profitability and productivity. It is therefore a good decision to utilize the idle capacity that CPC has by taking orders for production of goods for other firms through subcontracts.

6.3.1 Implementation Plan for Subcontracting

Activity	Resource	Decision Makers	Duration	Budget
Planning	Market research and skilled persons	Marketing and Procurement (CPC)	2 weeks	GHS 5,000
Tender announcement	Skilled persons and online presence	Marketing and Procurement (CPC)	3 weeks	GHS 2,000
Operation	Idle capacity and Skilled persons	Operations and outbound logistics	5 months	GHS 20,000

6.4 Alternative Solution for Issue C: Vertical Integration

Another alternative will be to vertically integrate CPC by owning a part of the upstream of their supply chain. The focus here is on the farmers but CPC can also partner with CMC to have reserves especially for production at CPC. The farmers who wish to exit or are in search of support can sell or partner with CPC so as to assure availability of the light crop cocoa beans.

6.4.1 Implementation Plan for Vertical Integration

Activity	Resource	Decision Makers	Duration	Budget
Planning	Capital and skilled persons	COCOBOD CPC	2 weeks	GHS 5,000
Acquisition	Skilled persons	Farmers and Procurement (CPC)	3 weeks	GHS 22,000
Operation	Farm equipments and haulage	Operations and inbound logistics	5 months	GHS 35,000

CHAPTER SEVEN

SUMMARY AND CONCLUSIONS

7.1 Summary of the study

In the qualitative and quantitative analysis it was established that the value chain for Cocoa Processing Company Limited (CPC) can be made leaner by reducing the number of processes that have been duplicated (such as heat treatment and tempering) whiles the associated electricity and fuel consumptions was realized to be high. This case study identified that amongst the seven forms of waste; there is energy waste embedded in those wastes. It was with electricity, production and fuel consumption data of CPC for the period of (2015-2017) that we established that the need for alternative energy sources (specifically Solar Photovoltaic Systems) is necessary to reduce the reliance on hydroelectric power.

Finally, this case study was able to assess the trend of electricity consumption for the past three years and ascertained that the consumption rate for the coming future can be catered for by Solar PV Systems, either fully or with support from electricity supplied by the Ghana Grid Company. The needs of the customers were also identified and the value chain was reduced for operations at the cocoa factory. This will go a long way in reducing operations costs for CPC while promoting green logistics through energy efficiency and a leaner value chain.

7.2 Conclusion of the study

To conclude, the data analysis, environmental and situational analysis all point to solar energy systems being the best options in this case study to achieve the objective of ascertaining if the operations at CPC can be powered by alternative sources of energy. The combination of the chosen alternative solutions for each of the three managerial issues complement each other in the area of environmental, economic and societal cost reduction for CPC and the country in totality.

Also the survey was able to point out that the main issues that customers have with products made by CPC is their price affordability, accessibility and availability of desired products especially during festive seasons.

The other alternatives such as the subcontracting of orders for production for other firms who lack the capacity to process cocoa will also create revenue and ultimately reduce idle time cost on capacity at CPC since the vertical integration will ensure that there are enough light crop cocoa beans for processing and any idle capacity is also utilized. This will ultimately improve efficiency in energy and resource management at CPC which will reflect positively on its productivity and profitability.

It is therefore time for CPC to use green logistics in the aspects of energy consumption to save on operational cost while protecting the environment in the long time whiles avoiding the backlash of the unreliable power supply in Ghana. It is for this reason that the case study has the title “The use of green logistics: The way forward for Cocoa Processing Company Limited (CPC)”.

REFERENCES

Amankwah-Amoah, J. (2014): Solar Energy in Sub-Saharan Africa: The Challenges and Opportunities of Technological Leapfrogging. Thunder bird International Business Review.

De Brito M.P., Flapper, S.D.P., Dekker, R. (2002): Reverse Logistics: a review of case studies: Econometric Institute. Netherlands: Erasmus University Rotterdam.

Carreira, B. (2005): Lean manufacturing that works: powerful tools for dramatically reducing waste and maximizing profits. New York: Amacom.

Cocoa Processing Company Limited, (Accessed 04, February 2019)https://www.goldentreeghana.com

Corzine, J.S., Jackson, L.P. (2006):Green purchasing: A guide for local Governments and communities. Athens

Demirbas, A. (2009): Biofuels Securing the Planet’s Future Energy Needs: Energy Conversion and Management.

Elhedhli, S., Merrick, R. (2012):Green supply chain network design to reduce carbon emissions. Ontario, Canada: University of Waterloo.

Energy Commission. (2010): Draft of Bioenergy Policy of Ghana. Accra

European Commission. (2019): Photovoltaic solar energy: Development and current research. Luxembourg: Office for Official Publications of the European Union.

Worrell, E., Angelini, T., Masanet, E.(2010):Managing Your Energy: An Energy Star Guide for Identifying Energy Savings in Manufacturing Plants

ESTIF. (2006):Solar Industrial Process Heat: State of the Art Intelligent Energy Europe

Gogula, V., Wan, H., Kuriger, G. (2011):Impact of lean tools on energy consumption

Howell, K. E. (2013):Introduction to the Philosophy of Methodology. London: Sage Publications

How manufacturers are developing and using renewable energy:(Accessed 10, March 2019)

https://www.smartcitiesdive.com/ex/sustainablecitiescollective/how-manufacturers-are-developing-and-using-renewable-energy/1175001/

IEA. (2010):Technology Roadmap on Concentrating Solar Power. Paris.

International Renewable Energy Agency (IRENA). (2016): Solar PV in Africa: Costs and Markets. Abu Dhabi.

International Renewable Energy Agency (IRENA). Africa’s Renewable Future: The Path to Sustainable Growth. Available online: (Accessed 10, March 2019).http://www.irena.org/documentdownloads/publications/africa_renewable_future.pdf

International Renewable Energy Agency (IRENA). (2018):Renewable Power Generation Costs in 2017: International Renewable Energy Agency. Abu Dhabi

IRENA.(2016):The Power to Change: Solar and Wind Cost Reduction Potential to 2025:International Renewable Energy Agency. Abu Dhabi.

IRENA.(2012):Renewable Energy Technologies: Costs Analysis Series: Solar Photovoltaic. Abu Dhabi.

Kuriger, G., & Chen, F. (2010): Lean and green: A current state view.

Levelized cost of energy. (2017): (Accessed 12, March 2019): https://www.lazard.com/media/450337/lazard-levelized-cost-of-energy-version-110.pdf

Lu, D. (2011): Fundamentals of supply chain management. Denmark: Ventus Publishing ApS.

Milward, R., Gilless, C. (2013): Lean, Energy, and Savings: Energy Impacts of Lean Manufacturing. Available online: https://pdfs.semanticscholar.org/7b14/7bffbe6a413f0cba45f808b183528b6cf363.pdf

Monczka, R.M., Handfield, R.B., Giunipero, L.C., Petterson, J.L. (2009): Purchasing and supply chain management. 4th ed. USA: Cengage Learning.

Moreira, F., Alves, A.C., Sousa, R.M. (2010): Towards Eco-efficient Lean Production Systems: Production and Systems Engineering Department. Boston: Springer.

Morton, M., Pentico, D. (1993):Heuristic scheduling systems. New York: John Wiley & Sons.

National Research Council (2000):Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press.

Oteng-Adjei, J. (2010):Draft Bioenergy Policy of Ghana: Energy Commission: Accra, Ghana.

Ray, C. D., Zuo, X., Michael, J. H., Wiedenbeck, J. K. (2006): The lean index: Operational “lean” metrics for the wood products Industry

Rother, M., Shook, J. (1999). Learning to see: Value stream mapping to add value and eliminate muda. Cambridge, MA: Lean Enterprise Institute.

Sciortino, M., Watson, S., Presnar, R. (2009): The Importance of Energy Efficiency in Lean Manufacturing: Declaring Energy the Ninth Waste. Washington, D.C.: American Council for an Energy-Efficient Economy.

Solar Energy Industry Association (SEIA). (2014): Solar Energy Technologies: Solutions for today’s energy needs.USA.

Stock, J.R. (1998): Development and Implementation of Reverse Logistics Programs. Oak Brook, Illinois: Council of Logistics Management

Stock, J.R. (2001): Reverse Logistics in the Supply Chain: Global supply chain strategies.

Sulaiman, I., Boachie-Danquah, B. (2017):Investing in Ghana’s Cocoa Processing Industry: Opportunities, Risks &The Competitive Advantage. Accra, Ghana: Goodman AMC

UNIDO. (2007): Renewable Energy in Industrial Applications: An assessment of the 2050 potential. Vienna

United States Environmental Protection Agency (EPA). (2007): The Lean and Energy Toolkit: Achieving Process Excellence Using Less Energy. USA: Ross & Associates Environmental Consulting. Ltd

Vilar. (ED). (2012):Renewable Energy in West Africa: Situation, Experiences and Tendencies

Washington State University Extension Energy Program. (2009): Solar Electric System Design, Operation and Installation. Washington: USA

Wheelen T.L., Hunger J.D. (2012): Strategic management and business policy: Towards global sustainability. 13th ed. USA: Pearson.

Womack, J. P., Jones, D. T. (1996):Lean thinking: Banish waste and create wealth in your corporation. New York: Simon & Schuster.

Wong, C.W.Y., Lai, K.H., Lun, Y.H.V., Cheng, T.C.E. (2015): Environmental Management: The Supply Chain Perspective. Springer

World watch Institute. (2011): Biofuels Make a Comeback despite Tough Economy: World watch Institute. Available at: http://www.worldwatch.org/biofuels-make-comeback-despite-tough-economy

APPENDICES

RESULTS FROM CUSTOMER SURVEY