Oakhurst Dairy’s Operations Management and Sustainability

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Introduction

Sustainability is typically defined as a company approach that is financially viable, socially ethical, and ecologically responsible. Businesses that prioritize social responsibility and environmental stewardship as critical components of their strategic approach frequently generate sustainable financial values (Maury, 2018). Oakhurst Dairy Farm is a significant producer in the milk sector that has demonstrated tremendous advances and has been respected in Northern New England throughout the years. Oakhurst Dairy identified several impending issues in its 2010 report, which manifested themselves in 2012 and lasted several years. Oakhurst Dairy’s policies span numerous areas and are geared toward promoting sustainability in all of the company’s activities (Gittell et al., 2012). This paper aims to analyze the role of Oakhurst’s sustainable business practices and the benefits it gained from its partnership with the NGO Clean Air-Cool Planet. Additionally, the essay identifies how monitoring sustainable efforts contributes to effective management and the company’s challenges in 2012 and beyond.

Oakhurst’s Survival and the Role of the of the Company’s Sustainable Business Practices

Rather than capitulating to external macroeconomic factors that degraded many family enterprises to romantic recollections of pastoral America, Oakhurst discovered ways to make the dairy sector a viable component of the Maine business. The following elements contributed to Oakhurst’s sustenance: lean manufacturing, operating excellence, and commercial value generation via ecological sustainability. Lean manufacturing is the practice of continuously eliminating waste from an operator’s product life cycle, increasing consumer value through constant improvement of the company’s operational effectiveness (Wyrwicka & Mrugalska, 2017). Oakhurst has concentrated on production efficiency enhancements in the highly competitive milk industry.

With significant price competition in the sector, achieving cost savings without jeopardizing product quality or authenticity could lead to greater earnings. Finding solutions to minimize the price of power, energy, water, and sewerage could increase institution’s profitability while reducing the firm’s ecological effect and enhancing the corporation’s positive public image with a more extensive customer base. The Bennett family was adamant that environmental protection was critical to the success of their enterprise and the US dairy sector (Gittell et al., 2012). Oakhurst’s collaborative and inclusive strategy for cutting emissions has established the industry benchmark for quality standards. They have partnered on sustainability initiatives with interested parties, federal agencies, industry rivals, and others.

Oakhurst’s corporate sustainability approach involves a willingness by senior executives to sustainability initiatives in its activities and distribution network and the implementation of sustainable aims and procedures into the firm’s infrastructure. Furthermore, the company’s other sustainable methods include the application of financial and operating statistics and information, assessing environmental achievements, and executing constant improvement. The company saved over $620,000 in annual fuel expenditures by implementing sustainable strategies throughout its processes (Gittell et al., 2012). Therefore, this has resulted in yearly savings of $52,500 at $3.50 per gallon gasoline price and 6.5-year amortization on its venture (Gittell et al., 2012). The corporation’s strategic planning, which includes developing and implementing a carbon reduction strategy, has caused a decline in its carbon footprint and improved quality of life in its operating environments. Oakhurst has made a concerted effort to considerably reduce its atmospheric emissions, principally by reducing its reliance on fossil fuels and streamlining processes through the application of lean production techniques.

Benefits Oakhurst received from its Relationship with Clean Air-Cool Planet (CA–CP)

The relationship between Oakhurst and CA-CP saw Oakhurst derive numerous advantages, as discussed herein. Due to their partnership, Oakhurst witnessed plant growth and operational efficiencies. The business implemented various energy-efficient technology, systems, and processes in collaboration with an energy specialist and CA–CP (Gittell et al., 2012). These included insulating cold storage tanks and building a heated water backup system. The hot water reclamation technology drastically decreased costs and water consumption. The hot water regeneration system conserved 2,500 barrels of heating oil annually and reduced 25 metric tons of carbon footprints (Gittell et al., 2012). Milk manufacturing requires a lot of hot water for pasteurization and washing of containers and infrastructure.

The collaboration enabled Oakhurst to switch to the use of biofuel in its operations. Oakhurst working with CA-CP projected that by moving its fleet of trucks from diesel to B20, a combination of 20% soy and 80% petroleum, they could reduce carbon emissions (Gittell et al., 2012). Oakhurst administration transitioned over one hundred vehicles and loaders to biodiesel energy without making any improvements due to this assessment. By 2006, Oakhurst Dairy was operating New England’s leading corporate fleet powered by soy-based biodiesel. As a result of the changeover, Oakhurst’s carbon pollutants were reduced by 1,332 tons (Gittell et al., 2012). Additionally, the cooperation made it possible for Oakhurst to install solar panels in its facilities in Portland and Waterville.

These two plants were vital in Oakhurst milk production and supply; therefore, the solar boards were essential. Oakhurst placed 72 solar thermal panels representing nearly 2,500 square feet on the ceiling of its Portland building in the spring of 2008 with the assistance of CA–CP and Ascendant Energy (Gittell et al., 2012). As a result, this made it one of the most significant deployments of its sort in the northeast. The hot water frames cut the plant’s annual heating oil consumption by over 5,000 gallons, reducing 51 metric tons of carbon output by pressurizing water (Gittell et al., 2012). On the roofing of its Waterville site, Oakhurst erected a photovoltaic panel energy system in 2009 (Gittell et al., 2012). The 216 solar photovoltaic panels generated an estimated 45,500 kilowatt-hour (kWh) of energy each year, or around 15% of the structure’s electrical utilization (Gittell et al., 2012). The upgrade also saved additional 5,000 gallons of fuel oil each year, or 51 metric tons (Gittell et al., 2012). Additionally, the improvements extended the life of the institution’s furnaces.

Finally, in addition to receiving other benefits due to its sustainable business practice, Oakhurst also engaged in reconfiguring software for its commercial vehicles in 2005 as part of its endeavor to cut emissions. The new program enabled the organization to minimize its distribution networks from 92 to 67 (Gittell et al., 2012). Oakhurst’s brand name is highly respected because of its investment in cost-cutting business management techniques that boost brand awareness and recognition and convey messages about the corporation’s carbon-reducing strategies.

How Detailed Targets, Calculations, and Monitoring of Sustainability Efforts Contribute to Effective Management

Indeed, specific targets, assessments, and evaluations of sustainability practices are critical and crucial for competent governance and an organization’s overall performance. A few critical ways they can aid in ensuring professional control have been explained below. First, they contribute to a better understanding of the objective prerequisites (Esmaeilian et al., 2018). With an all-encompassing point-by-point aim, measurement, and tracking of environmental initiatives, staff members will have an incredible consensus that will aid in their understanding of what is required to reach the established targets properly.

Second, they assist in reducing unnecessary expenses of effort and cost. Some of the leakages caused by correlations are the lack of adequate details, estimations, and green initiative supervision. Suppose the details are adequately spelled out, deduced, and surveilled; in that case, they will assist executives and group members in reducing the wastage of resources and materials since most endeavors will be adequately outfitted and implemented (Epstein et al., 2018). Third, they aid in the supervision of coworkers’ activities; for correct orientation and assistance, it is critical to provide complete details regarding target requirements, estimates, and evaluation of sustainability efforts (Epstein et al., 2018). Finally, they contribute to the firm’s overall performance and effectiveness (Epstein et al., 2018). When objectives are defined, they become more achievable, contributing to the organization’s general competency and production efficiency, as most efforts will result in advantageous consequences.

Oakhurst’s Main Challenges in 2012 and Beyond

In 2012 and beyond, Oakhurst Dairy had numerous obstacles that disrupted the majority of its market transactions as a dairy company. The examination found that rivalry became more intense in 2012 and that the enterprise operated on a razor-thin cushion while fuel costs continued to rise. One significant problem that Oakhurst Dairy encountered was the state’s shift in the pricing of milk and other commodities (Gittell et al., 2012). The government set milk prices below the manufacturing cost for numerous years, threatening Oakhurst Dairy. Most milk customers are concerned mainly with price, not environmental impact. As a result, Walmart and other major milk sellers were progressively seeking lower prices from Oakhurst and other milk producers for the milk they purchased.

Another issue that the Oakhurst Dairy farm faces is environmental destruction caused by cattle congestion and milk poisoning at any time. As a result, this has become a difficulty for Oakhurst Dairy, as the administration has implemented numerous business methods to overcome the obstacle at any time (Gittell et al., 2012). Oakhurst Dairy’s running expenditures did not recoup and generate income for the business. As a result of this difficulty, Oakhurst Dairy found it challenging to manage greenhouse gas emissions over time commencing in 2012 and continuing into the future (Gittell et al., 2012). The institution’s critical information was at risk of deletion, but it would be safeguarded and proposed reforms implemented to end the issues that began in 2012 and continue to face the Oakhurst Dairy leadership.

For sure, I still expect the firm to carry out its business activities as an independent dairy in 2020. The company’s sustainable initiatives have greatly aided in its operational efficiencies. For instance, its lean manufacturing procedures have made it market its brand successfully among its consumers and the broader American society. Its visionary leaders also contribute to my idea of its independent operations in 2020. Additionally, Oakhurst’s collaborative initiatives with like-minded institutions like CA-CP in reducing GHG emissions provide it with an added advantage in succeeding in its operations as a sole proprietor.

Conclusion

In conclusion, sustainability is characterized as a business strategy that is financially successful, socially ethical, and environmentally responsible. Businesses that take responsibility for society and ecological conservation fundamental aspects of their strategic approach usually obtain durable financial benefits. Oakhurst’s collective and participatory approach to emissions reduction has set the sector standard of excellence. Oakhurst saw plant expansion and operational benefits due to its cooperation with CA-CP. The enterprise developed various energy-efficient technologies, systems, and procedures in partnership with a power consultant and CA- CP. However, the Oakhurst family farm is constantly threatened by environmental degradation induced by cattle bottleneck and milk toxicity. As a result, this has become a challenge for Oakhurst Dairy, despite the administration’s multiple business strategies for overcoming the impediment at any moment. Regardless of the obstacles, the business’s sustainable measures have significantly benefited it’s continuing operational efficiency.

References

Epstein, M. J., Elkington, J., & Herman, B. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.

Esmaeilian, B., Wang, B., Lewis, K., Duarte, F., Ratti, C., & Behdad, S. (2018). The future of waste management in smart and sustainable cities: A review and concept paper. Waste Management, 81, 177-195. Web.

Gittell, R., Magnusson, M., & Merenda, M. (2012). The sustainable business case book. The Saylor Foundation.

Maury, B. (2018). Sustainable competitive advantage and profitability persistence: Sources versus outcomes for assessing advantage. Journal of Business Research, 84, 100-113. Web.

Wyrwicka, M. K., & Mrugalska, B. (2017). Mirages of lean manufacturing in practice.Procedia Engineering, 182, 780-785. Web.

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