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1. Introduction:
The application of perspectives and theories of operations management as reference points in
other disciplines in the fields of research and practice leads to beneficial results for firms
(Kickul, Grif!ths, Jayaram, & Wagner, 2011). The increase in the intensity of competition in
the recent decades has led manufacturing organizations to adopt a number of diverse and
discrete operational remedies (Neely, 1993). Hence, it might be fairly commented that the
enhancement of the operations management of a business enterprise is majorly, if not entirely,
responsible for its overall collective success. Firms excel their competitors improving their
own competitive dimensions. Karjewski & Ritzman (2002) define these dimensions to be
operating advantages that a certain firms processes are required to have in order excel vis--
vis its competitors (Krajewski & Ritzman, 2002).
This paper discusses the operations management of an Australian fresh juice manufacturer,
namely Emma & Toms. The Australian fruit juice industry vies focusing on new product
development and not on price (Weemaes & Riethmuller, 2001). The Australian fruit juice
consumers are offered diverse choices of juice blends varying in size and concentrations as
these characteristics are believed to be valued by consumers according to the manufacturers
and retailers (Weemaes & Riethmuller, 2001). Emma & Toms exploits the value of health
consciousness among consumers and differentiates its core product by terming it as Life
Juice which is minimally processed. Fresh fruit juices serve the daily requirement of fruit
intake and the latter is encouraged by a lot of public health campaigns internationally
(Landon, 2007). Preying on this consumer value, Emma & Toms carries out its operations
ensuring the quality of its products complying with health issues which conflates absence of
preservatives, concentrations, added sugar, artificial colours and flavours (Emma & Tom's,
n.d.). Emma & Toms operates upholding this differentiation and quality. This paper
essentially is an analysis of the case study of Emma & Toms provided in the appendix
section. The analysis is made through the theoretical lens of operations management and the
application of the theories of operations management in the business is elaborated herein.
1.1. Objectives
This paper is an assessment requirement for the unit of International Manufacturing (unit
code: MGF 5470) at Monash University for semester 1 of the year 2014 under the tutelage of
Associate Professor Daniel Prajogo. The objectives of the paper are as follows:
i) Analyse the application of the theories of operations management, taught in the
aforementioned unit, in the operations of Emma & Toms.
ii) Analyse the deployment of competitive strategies into operations management
activities based on the case study of Emma & Toms provided in the latter section
of this paper.
The case study of Emma & Toms that has been provided in the section of the paper
succeeding this is used as the reference point for analysis and interpretation. The broad
objective of this paper is to provide the reader an understanding of the theoretical tools of
operations management that are applied in the operations of the business, Emma & Toms, in
an analytical and elaborative manner.
1.2. Source of data
The authors of this paper have conducted an interview with Ms Petrina Krelle who serves as
the New Product Development and Quality Assurance Assistant at the warehouse of Emma &
Toms at the Prahran suburb of Melbourne. The interview lasted for nearly half an hour. Ms
Krelle provided the authors important information regarding the operations and modus
operandi of the business entity. The interviewee also responded to a number of questions
posed by the authors. Some of the questions were pre-structured while a lot were follow-up
and open-ended questions that sprouted from the course of the interview. This interview is the
major and only source of primary data that has been used for the preparation of this paper.
The case study, subjecting this analysis, which is attached in the appendix section of the
paper, has been written based on the interview.
In addition to the interview, Ms Krelle provided the authors a catalogue of Emma & Toms
which provided substantial information regarding the company and the products of the
company. The material has been cited herein as well. Other than these, the theoretical aspects
and insights of operations management have been drawn from the coursework of the unit for
which this paper is prepared. Moreover, a number of journal articles, consumer reports and
academic write-ups have been used as secondary sources of data.
2. Company overview:
Emma & Toms is founded by childhood friends Emma Welsh and Tom Griffith (Emma &
Tom's). The company started its operations in 2004, which makes it operational for nearly a
decade now. This has given the company a substantial amount of operational experience and
comprehension of the market. The core product of Emma & Toms is fresh fruit juice besides
its other product ranges that include life bars, quenchers and sparkling fruit juice. Fruit juice
refers to a heterogeneous product base (Weemaes & Riethmuller, 2001) and in the Australian
market it includes a wide range of products differing in the containment of preservatives,
colours and sugar. Emma & Toms terms its fresh juice as Life Juice, which is marketed in
predominantly eight different flavors, and differentiates it from its competitors in being
minimally processed and flash pasteurized. This point of differentiation confers the
characteristic of order winner upon Emma & Toms. The differentiation makes the Life
Juice of Emma & Toms fresher containing more whole fruit components and the flash
pasteurization gives it a short shelf life of six weeks. This short shelf life has implications on
the inventory and supply chain management of the company. The company operates with the
philosophy of providing healthy drinks to its customers who are typically characterized to be
young, affluent and health conscious.
The production of the Life Juices are not undertaken by Emma & Toms per se. In other
words, Emma & Toms in essence does not have any production plant of its own. Rather, the
company operates by outsourcing the production process to contractual manufacturers.
Currently, five subcontractors are in agreement with Emma & Toms. The raw materials are
procured in the fruit-growing region of Griffith in New South Wales. This is where the fruits
are juiced and blended through flash pasteurization and short-term heat treatment. This short
term heat-treating retains most of the vitamins and fruit nutrients in the juice blends and
makes it short lived in the shelves. The juice blends are drummed and transported by road
refrigerated to Brisbane in Queensland for bottling. The bottling process is also outsourced.
Emma & Toms selects its contractual manufacturers based on certain criteria, namely
possession of right equipment and HACCP certification.
3. Industry overview:
The Fruit Juice Drink Manufacturing industry is regarded as the businesses that process,
blend and package the fruit juice drink products on their own for the consumer market. The
products these industries make may be labeled juice, nectar, fruit juice drink or freshly
squeezed juice (Review, 2014).
According to the industry report for the fruit juice drink manufacturing research report of
Australia, due to the fluctuation of the fruit prices and the tighter retail environment, the
revenue of the industry is significantly volatility in the past five years. Furthermore, the
revenue is expected to fail to nearly total 722 million dollars in the year of 2013 to 2014
(IBISWorld, 2014)However, with an increasing consciousness of health of the customers,
there is still a minor growth for the fruit juice drink industry (IBISWorld, 2014).
It has been realized that for the companies, like Emma and Toms, who fight for the market
share in the fractionalized juice drink manufacturing industry, it is essential to guarantee the
quality of the juice products that are provided to the market. The business of the industry
should be able to reduce the risk of ingredient contamination and meet quality and compliance
mandates. Meanwhile, the efficiency of cost and dependability are the basic requirements for
the industry. Moreover, with the achievement of the quality and the dependability, the
flexibility of the products would improve the performance of the company even better.
4. Competitive dimension:
The fruit juice industry has been given a bad wrap during the past several years, as states that
fruit juice is low in fibre compared to eating piece s of whole fruit, because it contains only
pasteurized juice for a longer shelf life. As for Emma and Tom, the company develops the
whole fruit smoothies use the whole fruits, so all of the fleshy goodness goes into the bottle
(Emma & Tom). Therefore, the company can provide a relative higher quality of products to
the customers and help itself to stand out among the highly competitive fresh juice market.
By providing about 20 per cent of daily fibre requirement and at least 2 portions of whole
fruit juice, flesh and all, Emma and Tom has built up a strong competitiveness on its quality
among its competitors like Spring Valley or Nudies (Emma & Tom). All the fruit ingredients
use to producing for the products of Emma and Tom is strictly picked from Griffith and
Brisbane, in which the local weather is a huge advantage for the growth of the fruit and
therefore the flavor and quality of the fruit could be ensured.
Additionally, the upper quality of the products from Emma and Tom can also reflect on its
producing process. As all the subcontractors of the company have the HACCP certificate,
Emma and Tom blend the juice right after the fruits been picked and gathered in the same
location to keep the fresh flavour. Then the juice would be refrigerated and transport to the
final processing immediately before bottling and transfer to the warehouses in the other states.
By minimizing the process, the juice can be sold in a more fresh and qualified manner to the
Moreover, in order to keep the fresh status of the juice without adding any preserves, the
juices from Emma and Tom renders a relatively shorter shelf life. By using both road and rail
transportation when delivering the products, the juices of Emma and Tom could be delivered
in a weekly basis, while only 6 weeks shelf life comparing with the other brands.
Apart from the quality dimension, Emma and Toms also flexibly develop several new
product lines like, the quenchers, vitamin water and so on, to make itself more fit into the
variety of needs from the customers in the market. The retailers can both make the order
straight to the company, as well as through the portal online. Due to a shorter and efficiency
delivering process, Emma and Tom can deliver its products quickly and in a more fresh status
to its customers. Therefore, Emma and Tom has not only fulfill the order qualifiers of the
industry, which are the quality and dependability, meanwhile, the upper-level of quality of
products has distinguished this brand from the other juice companies, and give a more health-
care concern and a stronger sense of dependability to the customers. The concept of fresh
that the Emma and Toms is trying to deliver through a more minimized process, a relatively
shorter shelf life, contributing to the higher quality of the products, could be seen as the
winner qualifier of the company to win its market.
5. Operation management:
5.1. Supply chain management:
The complexities pertaining to food supply chain cause the processors to incur heavy
challenges (Ruteri & Xu, 2009). The Life Juice product line of Emma & Toms is
characterized by minimal processing which renders fresh fruit juice retaining wholesome and
natural fruit nutrition to the final consumers. This involves short-term heat treatment and flash
pasteurization followed by immediate refrigeration as has been mentioned earlier and noted in
the case. Thus, the factors needed for carrying out this procedure involve technology and right
equipment. Emma & Toms has evaded the heavy challenge for managing this operation by
outsourcing the processing of its Life Juice to contractual manufacturers.
It should be noted that Emma & Toms is essentially a brand that is recognized by the
consumers. From the case study it is noted that Emma & Toms gets its products processed
and bottled from contractual manufacturers who conform to the criteria set down by the
former. Currently Emma & Toms is operational with five contractual manufacturers. Emma
& Toms, in essence, has outsourced its product processing and has focused on the operation
of delivering the finished goods, i.e. bottled Life Juice, to the accessibility of the final
consumers. Koszewska (2004) rightly notes that outsourcing benefits a business by allowing
it to focus on its core activities. Emma & Toms is basically ensuring the quality of its
products as being fresh and minimally processed through passing on the responsibility to its
contractual manufacturers who are efficient in doing so. The contractual manufacturers
include Harvey Fresh in the operations involving juicing and blending of fruits and other
suitable firms in Griffith and Brisbane that are efficient in processing and bottling.
Depending upon the contract with the manufacturer, the procurement of raw materials is
carried out by the contractual manufacturer or Emma & Toms or both. It can be inferred that
the stipulation is subjected to the potential efficiency and cost management. Since the Life
Juices have short shelf lives the orders for new supplies are placed weekly. The amount of
orders are figured based on previous records and trends of particular dates in the preceding
year, which is under the purview of the inventory management of Emma & Toms. Modern
management thoughts recommend collaboration among business entities and responsiveness
to clients to develop a successful competitive strategy (Vorst, Silva, & Trienekens, 2009).
Emma & Toms, in practice, is developing such a competitive strategy whereby it is
collaborating with its suppliers and contractual manufacturers in controlling the quality and
responding to customer demands by placing orders weekly.
Emma & Toms, therefore, is fundamentally operational with a vertically integrated format.
As such, the business is ensuring its supplies and does not have to worry much about it rather
it is focusing on storing the finished products rightly in its warehouses and delivering them
efficiently. However, there is a risk that Emma & Toms is subjecting itself to through the
measure of outsourcing. With no production plant of its own and getting its products
processed by other business entities who are not under its umbrella, Emma & Toms operates
with the threat of being hollowed out. The current contractual manufacturers of Emma &
Toms might become its potential competitor in the long run.
5.2. Quality control:
The Company as such does not hold any quality certification from any board. However, since
contract manufacturers carry many of the Companys supply chain activities out, the
Company ensures that each one of the contract manufacturers holds a HACCP certification.
The HACCP certification is issued after the concerned authority scientifically assess the
product(s) or product range(s) with regard to all facets of food safety; their compatibility with
HACCP based food safety programmed and their contribution to food safety. The process
includes examination of the design, manufacture, materials, instructions, delivery, storage,
accuracy, labeling, food safety claims and any other relevant food safety matters. (HACCP,
This quality control mechanism ensures that the products are
Non toxic (or appropriate levels of toxicity)
Easy to clean (or appropriate for use)
Likely to reduce the risk of any form of contamination
Designed for a low consequence of error in use.
So by this Emma & Toms ensures that a third party body namely HACCP Australia monitors
the standard of quality prior to the products arriving at the warehouses of Emma and Tom.
However, the selection criteria of the contract manufacturers are not only limited to the
certification. The machinery and equipment of the contract manufacturers are also evaluated
to ensure that they are able to provide optimal quality finished products. These quality control
measures however limits Emma & Toms control over any discrepancies or inconsistencies.
They rely a lot on the HACCP board. However this might prove detrimental to the company
as the reputation of Emma & Tom will be damaged in case of any inconsistency.
5.3. Distribution management:
The bottled life juices, which are producing by the contracted manufacturers, are transported
to four warehouses in Brisbane, Melbourne, Sydney and Perth. Essentially, road
transportation with the facility of refrigeration is used for getting finished products from
bottle factories to warehouses. However, the only difference occurs when regarding to Perth,
which is railway transportation. The lead-time of distribution to warehouses is one day for
Brisbane, three days for Melbourne and Sydney and one week for Perth. Both Emma & Tom
and some distributors conduct the distribution to consumers. The company operates with eight
vans with refrigeration facility and directly distributes the products within the CBD and
metropolitan area. And the certain distributors, such like G&K Fine Foods and Foodies,
which Emma & Toms works with, are responsible to distribute to the customers in the
The choice of transportation of products from factory to warehouses, saying road and rail
transportations, matches the features of Emma & Toms products, which is high quality with
short product life, and the feature of the reality. The requirements of refrigerating products in
order to maintain quality can be achieved by road and rail transportation in a cost-efficient
way. In addition, by considering the volume of the products and Australian geographical
situation, road and rail transportation are most appropriate for the company. Besides, it is
much easier to control the schedule of transportation by road and railway. In this way Emma
& Tom can ensure the dependability of its delivery to its consumers. The refrigeration facility
all-over the distribution process is the quality insurance of its products, which maintains the
fresh juice in cool environment, directly contributing to its competitive dimension of quality.
Throughout the distribution management of Emma & Tom, it can be concluded that the
decisions regarding to transporting products are critically made by Emma & Tom with
consideration of all the elements, including cost, lead-time, quality control and schedule
5.4. Inventory management:
Emma & Tom continuously chases customer demand and extends or contracts its supply
(output) to match existing customer demand levels. This strategy will require flexible
utilization of operational resources. Minimization of stock levels (aim is zero stock) and
therefore cash flow tied up when resources are underutilized (Meridith & Shafer, 2013).
The Companys demand is more or less constant throughout the year. Demand fluctuations
are very rare. The products held in inventory are considerably less as the juices are produced
only after orders are placed. Further, considering the low shelf life of the product, goods
cannot be held in warehouses for more than a week so the capacity to hold buffer stock is
greatly limited.
For the big supermarkets, Emma & Tom by past experience and trial and error have estimated
the number of products that are sold to each of these supermarkets and will thus produce only
that which is required. If in case excess goods are produced it is given to charity.
The volume and timing decisions are taken only by the demand of the previous year. Since
the demand and quantity of order is more or less constant the inventory costs are significantly
low. Further the juices will have to be sold within a weeks time. Emma & Tom use a Just-in-
time delivery system, especially to the big supermarkets. The JIT time philosophy employed
by the company ensures that the juices are only produced if there is an internal or external
customer is waiting for them or the demand forecast by previous experience. So the main aim
of the company is to try and ensure zero stock and to do this Emma & Tom try and ensure
that raw materials and the processed juices are delivered immediately at the time they are
needed and finished goods are produced only when there is an existing customer waiting.
Hence cash is not tied up unnecessarily within raw materials or stock allowing more effective
cash flow management for Emma & Tom. The Company uses a type of chase demand
strategy trying to effectively balance supply and demand. This system helps in keeping
inventory to a minimum and another strategy employed to reduce inventory is that the input
inventory is outsourced to the suppliers. However, if there is a change of prices regarding to
raw fruits materials, the same will be detrimental to Emma & Tom.
6. Performance:
As for performance, the Company has penetrated into the market and has a rough estimate of
20 percent share amongst its other 4 competitors. The implementation of the quality control
measures has ensured that the company has not received any complaints from consumers.
Further, the target goals have been achieved as on date. Financial results have not been made
available to the public, however we have been informed that the performance and growth of
the company has been stable over the years. However, the company is seeking for further
growth by introducing new product lines to the market.
7. Conclusion:
According to the information collecting, the insight understanding of the industry, the
summary of competitive capability of Emma & Tom and the analysis of its operation
management, it can be concluded that the success of Emma & Tom comes from its reasonable
technology about its operation process and correct choice of competitive dimensions which fit
the characteristics of the industry. The develop and control over the formula makes the
company unique when competing in the market. The establishment of selection criteria over
its contact manufacturers ensures the quality of its products and directly contributes to its
competitive dimension of quality. The vertically integrated supply chain and just-in-time
inventory management provide Emma & Tom competitive dimension of dependability, which
further lead to its success. These different kinds of operation management join together to
make its performance outstand among the competitors in the market.
However, the threats coming from its competitors, saying Nudie and Charlies, and its
potential competitors, saying its contract manufacturers, require Emma & Tom to find new
weapons, such like building own manufacturing plants and developing new product lines,
while insisting on its current competitive dimensions of quality and dependability.


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pp. SSS-SS8.

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Appendix 1:
Case Study
Emma & Toms
The warehouse of Emma & Toms in the Prahran suburb distributes the companys products
throughout urban Melbourne. In Australia, besides Melbourne, Emma & Toms has similar
warehouses in the cities of Brisbane, Sydney and Perth. The company operates with a distinct
business model exploiting its brand name with a commitment to offer its customers with
nutritious and minimally processed whole fruit products. This philosophy is reflected
throughout the companys operations management that starts from the procurement of raw
materials to the delivery of the finished products.
The product lines of Emma & Toms include Life Juice, Life Bars, Quenchers and Sparkling
fruit juice. The core and signature product line of the Emma & Toms brand, however, is that
of the Life Juice. In other words, most of the sales the company makes are attributed to the
sales of the Life Juice product line. There are predominantly eight flavours offered by the Life
Juice category offering various blends of fruit juices. The brand aims young affluent and
health conscious people as its target customers. The business of Emma & Toms, with its
motto of look after yourself, goes through an integrated operations procedure in giving its
consumers its products that help them to look after themselves.
The business model of Emma & Toms is one where the name of Emma & Toms is the
brand name that is recognized by the customer base. The brand of Emma & Toms works
with a number of contract manufacturers who carry out the value adding transformation of the
raw materials to finished products. Currently, Emma & Toms is operational with five
contracted manufacturers. The terms of contracts with these contracted manufacturers vary
and are not uniform. Some of the contracted manufacturers are involved in procurement of
raw materials while some carry out the processing and packaging. Moreover, the management
of procurement and transport of the individual subcontractors are also subjected to the
contracts they have entered to with Emma & Toms. For instance, deal with the supplier of
raw materials for processing might be managed by the subcontractor or Emma & Toms.
However, it can be said that the industrial and technical operations, whereby substantial and
significant transformation takes place, are implemented by the subcontractors. Emma &
Toms does not have any industrial plant of its own.
The major locales that contribute to the operationalization of Emma & Toms are two, namely
Griffith in New South Wales and Brisbane in Queensland. Griffith is well known for its fruit
growing. The procurement of fruits, the major raw materials of Life Juice and other product
lines of Emma & Toms, takes place here. The business entity of Harvey Fresh with its plant
in Griffith, which is currently contracted with Emma & Toms, does the blending and juicing
of the fruits to be put in drums.
The drummed juice blends from Griffith are put in refrigerated vehicles and transported to
Brisbane for final processing and bottling. The bottles of Emma & Toms Life Juice are light
and made from recyclable plastic that store more efficiently than round bottles. The
processing of the raw materials significantly distinguishes Emma & Toms from its
competitors. While there are a number of processed fruit juice manufacturers operational in
the Australian juice market, very few claim to provide fruit juices with minimal processing
and no preservatives. The major entities that Emma & Toms reckon as its close competitors
are Charlies, Nudie, Goldman Valley and Spring Valley. The processing of the raw materials
for the Life Juice, marketed by Emma & Toms, incorporates flash pasteurization, short
period of heat treatment and immediate refrigeration after the completion of the process. This
differentiates Emma & Toms from most of its competitors in terms of the juices of Emma &
Toms being minimally processed. The short heat treatment period retains vitamins and
nutritional components rendering a short shelf life. Therefore, the Life Juice line of Emma &
Toms has no preservatives and offer fresh juice experience with a shelf life of six weeks
which is notably less vis--vis the other juice manufacturers. Moreover, the juice offered by
Emma & Toms have whole fruit components and fruit pure giving a smoothie texture.
The contracted manufacturers, as mentioned earlier, are the ones who carry out this
processing. The management of integration and proper communication is done by Emma &
Toms. The contracted manufacturers are selected by Emma & Toms based on criteria such
as possession of right equipment that is necessary to carry out flash pasteurization and short
term heat treatment in order to maintain the minimally processed and fresh quality of the
finished products. Other than that, besides possessing the proper technology, in order to be a
subcontractor working for Emma & Toms the enterprise has to be HACCP certified.
The bottled Life Juices are then transported to the warehouses of the four major Australian
cities, namely Brisbane Melbourne, Sydney and Perth. Essentially road transport with the
facility of refrigeration is used for getting materials from one place to another. On the
contrary, rail transport is used to transport the bottled Life Juices from the Brisbane bottling
facilities to Perth. This transport mechanism of road and rail is to yield the most efficient
outcome maintaining the quality, refrigerated, of the finished products en route. The finished
products reach Brisbane on the next day while they reach Sydney and Melbourne three days
later. As far as Perth is concerned, the city the farthest from Brisbane, it takes a week to reach
there on rail.
The warehouse of Emma & Toms in Melbourne operates with eight vans with refrigeration
facility. The sales in Victoria, particularly Melbourne, are mostly direct. Nonetheless, Emma
& Toms works with certain distributors like G&K Fine Foods and Foodies to reach the
markets in the countryside. Operating for nearly a decade Emma & Toms manages its
supplies based on past figures. The demand in the beverage market is largely seasonal. In
Brisbane where summer lingers a little longer than the volatile weather of Melbourne, the
figures for the demand for Emma & Toms Life Juice are more evenly spread out annually in
Brisbane. With a low shelf life of six weeks of the Life Juice of Emma & Toms, order for
supplies are made weekly and produced thus. The placement of order is based on the demand
figures of the previous year.
The supplies in the warehouse in Prahran are distributed throughout the suburbs and city
centre of Melbourne. Additional orders by big customers like supermarkets and cafs are put
on auto-ordering mobile systems. These additional orders are placed to contracted
manufacturers who produce accordingly. Thus, very little and occasional discrepancy results
in the quantities supplied and demanded. Emma & Toms works with fundraising and
charities. If any additional supplies remain that might not be sold within its shelf lives, they
are donated to such organizations.
In the juice market Emma & Toms has a stable and formidable position. The prices of the
Life Juices of Emma & Toms are on par with the products of Nudie and Charlies. However,
the quantity offered by Emma & Toms is more, for the same price, compared to the other
two. The brand has seen good growth in recent years which has now steadied according to
Petrina Krelle, New Product Development and Quality Assurance Assistant of Emma &
Toms in Melbourne. Although, no formal figures and statistics on the juice market are
available Petrina estimates a roughly optimistic share of twenty per cent by Emma & Toms
considering the company itself and its close competitors, named earlier, to be the whole
The volatility of the prices of raw materials, namely fruits, might seem to be a profit
minimizing threat. However, Emma & Toms does not transfer this volatility to its customers
through raising prices. The fluctuations are absorbed by Emma & Toms rendering a stable
price for its products. Currently, the challenge posed to Emma & Toms is grabbing more
markets in its current locales of operations. This means getting access to the shelves of more
supermarkets and other customer touch points.

Appendix 2: