The Peanutty Food & Co. Supply Chain1
Company Background
Peanutty Food & Co., a small Brazilian food sector company, has shown significant growth rates in the volume of its operations, obtained through a consistent and committed performance aligned with the needs of its customers. Their activities are based on businessto-business (B2B) relationships, supplying food ingredients to a few large customers.
Peanutty’s business is concentrated in the processing and delivery of ingredients made from peanuts (mainly) and other nuts (secondarily). In this sense, the company has two strategic focuses:
• First, as a manufacturer of ingredients for the food industry, which includes the processing (selection, roasting, granulation, finishing, and preparation) of nuts purchased directly from producers. The outputs (roasted peanuts in parts, peanut fudge, crispy peanuts, and flour, among others) are provided as inputs for food manufacturers.
This activity is responsible for 65 percent of their total US$2 million annual revenue.
• Second, as a service provider: This includes the preparation of food items for large companies in the sector, such as fruit fillings, coated nuts, marshmallow syrup, dry mixes, and other components, using inputs provided by various food manufacturers.
Such activity requires the purchase of packaging, labels, and other supplementary materials from third parties, as well as the management of the suppliers’ quality and the logistics flow.
Peanutty’s Supply Chain
Peanutty’s supply chain presents several challenges, both upstream and downstream.
These are related to the concentration and size of Peanutty’s trading partners. The following figure represents Peanutty’s supply chain:

Farmers

Cooperatives / associations PEANUTTY

Food Industry
Manufacturers

Distributors/
Wholesalers

Retailers

Unprocessed foods

Figure 1. PEANUTTY’s Supply Chain

The first