Introduction
Following global warming and greenhouse gas emissions, sustainable business operations have attracted much attention. Oakhurst Dairy is a renowned dairy company with a considerable market share in the northern region of New England. Since its start, the company has maintained a high level of quality in its operations management. The 2010 study provided a chance to identify difficulties that persisted in obstructing its progress in the future (Gittell et al., 2012). Despite the obstacles that risked the firm’s future, it adopted sustainability initiatives that could be linked to future success. When looking at Oakhurst Dairy’s policies from the perspective of sustainable business practices, it’s evident that the organization follows an operations model for cost-saving production facilities with minimal greenhouse gas emissions. Oakhurst’s case provides a framework on which companies can evaluate their operations models and from which individuals can learn ways to minimize their carbon emissions and save on costs.
Challenges Facing Oakhurst and Mitigation Strategies
Although Oakhurst has enjoyed a large market share and a significant profit margin, it needs to re-evaluate current operation processes for future sustainability goals. In 2011 and in years to come, the company may not earn as much revenue as it does presently. Geissdoerfer et al. (2018) note that sustainable business practices require periodic evaluation and adjustment. Increased competition has become one of the most pressing issues at Oakhurst. Furthermore, the government imposed significant price modifications for milk and associated products, posing a difficulty for Oakhurst. (Gittell et al., 2012). From 2011 forward, the firm could no longer profit as it had in previous years by setting dairy prices lower than actual output.
Every producer wants to enjoy maximum revenue growth and face minimum challenges while staying ahead of competitors. Given the rising rivalry from established enterprises such as Houlton Farms Dairy, the propensity for revenue margin had gotten slimmer as energy prices continued to rise (Gittell et al., 2012). As a result of congestion, Oakhurst Dairy also had to deal with pollution generated by cattle. Gittell et al. (2012) also point out that there was a growing tendency toward big-scale dairy farming, with a concentration on bulk production and storage and an impetus for dairy unification and retaining a significant profit margin.
Oakhurst Dairy implemented various methods to mitigate the dairy industry’s role in environmental contamination. Most of these strategies were geared toward lowering GHG emissions, ensuring that the company’s reputation and profitability remained unblemished. This was accomplished by installing solar panels, modernizing its fleet of trucks, and implementing advanced commercial truck rerouting software (Gittell et al., 2012). The firm’s dedication to reducing pollution is shown in these initiatives. Fortunately, the results have been spectacular, including a decrease of more than a thousand tons of carbon dioxide emissions, lower production costs, and low main energy expenditures (Gittell et al., 2012). The corporation has invested in technological solutions such as a methane digestion system to reduce gas emissions. These initiatives align with Goni et al.’s (2021) views of sustainable production through clean technologies. The company has effectively minimized its operating costs through sustainable production, thereby increasing its net profits.
When it comes to competition, the company keeps a greater level of brand recognition to stay ahead of rivals. As part of its branding strategy, the corporation invests over $2 million per year in advertising and marketing (Gittell et al., 2012). To keep its good name, the corporation eschewed employing growth hormones. Maintaining healthy production processes has, in effect, contributed to environmental and social well-being while giving the company a good name. According to Goni et al. (2021), sustainable practices span every business area. This is evident in Oakhurst’s case since it has involved technological and strategic solutions in the production and marketing dimensions. As a result, even though Oakhurst Dairy faced numerous obstacles, it developed clear plans for dealing with them.
Oakhurst’s Practices and the Natural Resources Defense Council
Apart from the manufacturing process, food delivery is a cause of pollution in the form of emissions. As a result, smart logistics becomes a critical component of combating climate change. Natural resources must be treated with extreme caution to mitigate environmental pollution.
Natural resources, such as domestically sourced food, have been considered important contributors to environmental conservation. Reducing dependence on imported food reduces transportation-related emissions, resulting in better GHG and climate change management (Mi et al., 2019). Oakhurst Dairy depends on its truck network to deliver dairy products to customers across its territories. It indicates that without correct procedures, it may not reflect the Natural Resources Defense Council’s (NRDC) conclusions that utilization of local produce would have dual effects, assisting Maine farmers while also helping to protect the environment.
Oakhurst Dairy’s strong initiatives to guarantee that their undertakings support the NRDC conclusions are paying off. While the business has proceeded to supply milk and milk products to its customers, it has retrofitted its fleet and implemented rerouting algorithms to reduce pollutants (Gittell et al., 2012). The system ensures that the fleet only travels on routes with clients, emitting minimal carbon into the atmosphere. Large-scale milk production guarantees that local farmers in Maine are sufficiently provided with dairy products, minimizing dependency on comparable items imported from other states. Access to local dairy cattle feeds also benefits the corporation, as it decreases the likelihood of contaminants accumulating in Maine, which might harm residents’ health. Maine’s continuing self-sufficiency in agricultural production is due to the well-being of both society and the environment. As a result, Oakhurst Dairy’s dedication and commitment to “green” techniques align with the NRDC’s conclusions that relying on local food products benefits both residents and the planet.
Reducing Carbon Emissions and Cost-Saving
There are a variety of techniques for people to lessen their carbon footprint. One of them is cultivating a culture of relying on locally-made food unless situations demand it. The increasing amount of evidence suggests that this helps safeguard the environment in various ways, including reducing carbon emissions from multiple forms of transportation (Gittell et al., 2012). Furthermore, adopting energy-efficient activities can help people lessen their carbon footprint. Since it is popular to burn worthless materials, several activities such as reusing, recycling, and reducing may be adopted to cut carbon emissions (Hanif, 2018). Another option for reducing one’s carbon emissions is to consider other transportation modes. For example, choosing public transit over private vehicles could lower total energy usage and harmful toxic gases from vehicles. These ideas demonstrate that individuals can minimize their carbon emissions by implementing a variety of strategies.
The fact of the matter is that most of the measures that people can employ to cut their carbon output are also cost-effective. As a result, adopting eco-friendly activities is wise to save the environment and money. The three pillars (reuse, reduce, and recycle) could, for example, assist people in saving money so that they can acquire things that can be reused without depreciating (Hanif, 2018). Taking public transportation reduces the expense of maintenance and gasoline for car owners. Furthermore, relying too heavily on non-local foods results in additional costs that could be spent elsewhere. Because imported food must be delivered, locally-made food is affordable, a point that must be factored into the pricing model of the sellers. As a result, it may be claimed that consumers are saving money without realizing it by reducing carbon emissions.
Conclusion
In conclusion, climate change and global warming are some of the world’s biggest challenges. Most of the greenhouse gases are released during manufacturing and transporting finished products to the market in addition to import. Analyzing the Oakhurst case, sustainable business practices are vital for reducing carbon emissions, saving on production costs, and protecting the environment. Companies can reduce their carbon footprint by focusing on the routes with clients when transporting their products. Consumers can also endeavor to support local industries by buying from them and limiting greenhouse gas emissions when importing goods. Using locally-produced food and adopting alternative means of transport has been shown to significantly lower environmental pollution while minimizing the associated costs. Individuals can also limit their carbon emissions by reusing, recycling, and reducing to ensure that materials that can be reutilized without depreciating are not wasted.
References
Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). Sustainable business model innovation: A review. Journal of Cleaner Production, 198, 401-416. Web.
Gittell, R. J., Magnusson, M., & Merenda, M. (2012). Case: Oakhurst Dairy: Operations Management and Sustainability. In R. J. Gittel, M. Magnusson, &M. Merenda (Eds.), The sustainable business casebook. Saylor Foundation.
Goni, F. A., Gholamzadeh Chofreh, A., Estaki Orakani, Z., Klemeš, J. J., Davoudi, M., & Mardani, A. (2021). Sustainable business model: A review and framework development. Clean Technologies and Environmental Policy, 23(3), 889-897. Web.
Hanif, I. (2018). Impact of economic growth, non-renewable and renewable energy consumption, and urbanization on carbon emissions in Sub-Saharan Africa. Environmental Science and Pollution Research, 25(15), 15057-15067. Web.
Mi, Z., Zheng, J., Meng, J., Zheng, H., Li, X., Coffman, D. M., Woltjer, J., Wang, S., & Guan, D. (2019). Carbon emissions of cities from a consumption-based perspective. Applied Energy, 235, 509-518. Web.