Supply Chain and Economic Viability of Vanilla planifolia Andrew Production: A Case Study

Abstract

Objectives: To characterize the supply chain of vanilla (Vanilla planifolia Andrew) inorder to detect areas which could be improved and to determine the economic viabilityof its production.Design/Methodology/Approach: The information was compiled through semi-structured interviews in a vanilla company. The Value Stream Mapping technique wasused to describe the supply chain. Additional databases were consulted in order toobtain information on the production and commercialization of vanilla. The economicviability of vanilla production was analyzed with IRR.Results: This case study had five phases in its supply chain. The IRR of cash flow inthe traditional and technological production systems were positive, although the IRR ofthe traditional system was greater even though it had lower production volumes.Study Limitations/Implications: It was observed that vanilla requires between 3 and 4years for its first harvest, independently of the production system, traditional ortechnological, which means that there are negative cash flow numbers during the firsttwo years in both systems, despite a positive IRR.Findings/Conclusions: The critical stage in the supply chain of the company studiedwas the production. The cash flow for the technological system was superior whencompared to the traditional system. However, the IRR for the technological system waslower, since the investment in shade cloth was not compensated by the discountedcash flows that could otherwise be obtained.