American Sugar Refining Inc.

American Sugar Refining Inc.
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University Affiliation
Abstract
The American Sugar Refining Inc. is the world's largest sugar refining company. It has more than 150 years of experience in the production of sugar. The purpose of this research is to examine how the processes of transportation economics play a role in transportation decision of the organization. The activities of acquiring raw materials from all over the world and the distribution of finished product have clearly explained the topic. Through the research, we are also going to describe the complex and dynamic supply chain management of the company and how it contributes to the customer service level. The process is accomplished by looking at the movement of raw material in transit and storage, work in progress, distribution of finished and sharing of information between stakeholders. The research will also look at the inventory control system and how it ensures a smooth running of the organization through ensuring there is no shortage or surplus of products. The research shows the company has remained profitable over the years by being flexible and adaptable to changes in technology, economy, and people's taste and preference. Despite many sugar companies in the world collapsing due to poor management, American Sugar Refining Inc. has always found new ways to reinvent itself and stay in business
American Sugar Refining Inc.
The American Sugar Refining Inc. in 2013 adopted a corporate name, the American Sugar Refining (ASR) Group. The ownership structure is a partnership between the Florida Crystals Corporation and the Sugar Cane Growers Cooperative of Florida. The company is the largest in the world with a production capacity of 6 million tons of sugar annually (ASR Group, 2013). It owns and operates six sugar refineries in North America. It also owns refineries in Canada, England, Portugal, and Mexico. The company also produces industrial, food services and sweetener products. Over the years, it has acquired companies such as Domino Sugar, Redpath Sugar, and Tate & Lyles European sugar operations (Tate & Lyles Sugar, 2015)
Transport economics is a field of study concerned with the allocation of transportation resources to meet the needs of the society. The field has a team of engineers, economists, scientist and other transport professionals. It is concerned with project evaluation, risk assessment, transport demand modeling and forecasting, road pricing and the cost of congestion. It also looks at freight and logistics analysis, transport policy analysis and integrated planning and analysis of transport externalities relating to the environment, social and safety aspects (Palma, Robin, Quinet, & Vickerman,2011).
The ASR Group is an international company that transports its products to the Middle East, Europe, Asia, Mexico, and other parts of the world. The processes of transportation economics play a major role in the transportation decision of the organization. Transportation is vital in the economic activities of the organization. Through transportation, products are moved from where they are sourced to locations where they are demanded. Transportation acts as a link to the company's supplier and customers.
The companies in the ASR group import their materials from suppliers all over the world. For example, the Tate & Lyles Company imports its materials from the British Commonwealth nations (Tate & Lyles Sugar, 2015). Florida Crystals gets most of its raw materials from farmers in Florida. The ASR group is, therefore, affected by different countries transport infrastructures and road pricing. These factors influence the decision of the company on where to import from and where to export their products. The cost of energy also affects the price of the products.
The company is also concerned with the environment policies. Pollution of the environment is a negative externality. Air pollution and water pollution affects the transport industry. The company, therefore, uses the sugar waste fiber to generate clean and renewable energy that powers the sugar operations and houses. The company further implements to cater for the environment through pollution prevention, material substitution, waste minimization and recycling.
In maximizing the shareholders’ values in the ASR Group, profits have to increase. The group’s companies can increase the profits by reducing the costs in the transport sector. The company reviews the transportation process. The process ensures there is a maximum volume of the supply of a given delivery route. To reduce the cost of shipment of material the company uses a harmonized tariff. With products that are non-perishable, the company uses ocean shipping that is more cost effective. The group also has contracts with transport companies that give them discounts.
The companies have also blended its operations to reduce the transport cost by utilizing their freight off trucks to get raw material and also supply products. The companies also outsource to minimize cost. For example, during peak seasons the companies can outsource on transport and warehouses to increase their supply to certain markets. The process ensures there is cost cutting. Outsourcing a service provider that is more efficient and skilled in the performing of a certain service is another way of cutting cost.
The supply chain management is concerned with the management of goods and services. It looks at the movement and storage of raw material, work in progress and finished goods from source to consumption by the customer. The supply chain of ASR Group is complex and dynamic. The company acquires the raw materials from all over the world. The raw sugar procurement department is tasked with managing the supply and delivery of raw sugar on a fully hedged basis (ASR ...