This paper compares two small food-industry companies — Berger Ingredients and Hansell — examining how each operates despite sharing similar workforce size and market context. Berger Ingredients, founded in 2009, supplies raw food materials such as spices and natural preservatives to meat-product manufacturers, while Hansell, established in 1990, produces finished consumer food goods sold to major wholesalers. The paper reviews each company's ordering processes, inventory management, quality assurance programs, and logistics practices before identifying key similarities and differences. It concludes that while both firms show strengths, Berger's domestic supply chain provides a competitive advantage over Hansell's reliance on overseas ingredient sourcing, and each company has specific areas where operational improvements could be made.
The paper demonstrates point-by-point comparative analysis, systematically evaluating shared criteria (ordering, QA, inventory, logistics, workforce) across both companies. This technique allows the writer to build a cumulative argument about which firm has the stronger overall business model while acknowledging strengths in both.
The paper opens with a brief introduction stating the comparison's scope, then devotes roughly equal space to profiling each company individually. Two central analytical sections draw out similarities and then differences, with the differences section containing the paper's most critical evaluative content. A short conclusion synthesizes the findings without introducing new information. References follow APA format.
Just because two companies are of comparable size and operate in similar industries does not mean they will be alike in other ways. A comparison of Berger Ingredients and Hansell is one made between two companies both involved in the food industry, sharing some commonalities because of that fact. However, the companies are very different in the way they conduct business and in some of the products they sell. This paper first looks at each company separately, then compares the products and practices of both, before offering a few concluding statements regarding the comparison.
Berger Ingredients is a relatively new company, established in 2009, that supplies raw food materials to other manufacturers who use these ingredients to make packaged foods. The company is a small-scale operation with 20 employees and only 1,000 square meters of manufacturing space. The company does not require a larger space both because it has not been in business long enough to build a larger customer base and because it does not make finished products for sale to consumers.
The market for the goods that Berger supplies consists of manufacturing concerns that produce sausages, ham, bacon, and salami. Berger deals in the spices used in these meat products as well as natural preservatives. Essentially, the company acts as a middleman between the producers of spices and other raw materials and the manufacturers of finished products. A major new component of the business is the research and development of other markets for the ingredients they currently have available, as well as additional products they can sell to existing customers to enhance those companies' businesses. A significant ongoing challenge for Berger Ingredients is the control of pest populations that consume or nest around salable products. This problem is a regular issue within the plant's quality assurance (QA) and other management systems (Dries & Mancini, 2006).
The ordering system for the plant is handled electronically. A manager receives a fax on a standardized ordering form requesting specific ingredients in specified amounts. The fax is followed up by a telephone call confirming the order details and verifying that the interpretation of the order is correct. After the order is received and confirmed, it is entered into a system called JIWA. This system verifies the company's current inventory and determines whether the order can be filled from available stock. If the product is not available, it is placed on back order and flagged within the management system. Once the back order is placed, Berger Ingredients can then inform the customer when to expect delivery.
The next step is to generate a pick order, which is sent to the employee responsible for filling orders so that the product can be dispatched to the customer when it is on hand (Piasecki, 2011). The picking system is critical because most of the products Berger sells have a limited shelf life of around six months, and with more than 2,000 products, the company must track expiration carefully. Products are arranged on shelves so that older items are picked first. Because of this limited shelf life, on-hand inventory is kept minimal, with only high-volume products maintained as a safety stock.
When an order is picked, it goes to a QA inspector who verifies that it is correct. After the inspector checks the load for a specific customer, it is wrapped and a certificate of analysis is attached. Large-volume orders are packed on pallets and shipped via rented truck. Smaller orders are packed in boxes and cartons and shipped via TNT. Every order is labeled with a barcode containing all shipment information, enabling tracking en route. The ordering cycle is complete when the customer receives the product and their own QA team verifies it is correct. If the customer's QA officials identify a problem with the shipment, it is returned and re-entered into the system for correction.
Another aspect of the QA program at Berger Ingredients is ensuring that the premixes they sell contain the correct list of ingredients and are mixed to specification. The company uses a team concept to ensure that it introduces mixes relevant to the market. This team, composed of people from all departments, meets together to discuss the proper way to market and launch new products. The company also employs a reverse logistics program to ensure customer satisfaction. If a customer is not satisfied, Berger will attempt to remix the ingredients correctly; if that is not possible, the resulting material is sold to farmers as cattle feed.
The company uses key performance indicators and input from its distributors to ensure that its inventory of ingredients matches current demand. By using a monthly end-inventory value report and other inventory trackers, the company is able to maintain the product it needs and prevent items from going out of date.
The second company under consideration is Hansell. Much like Berger, it is a small company, but Hansell sells finished products rather than raw ingredients and ingredient mixes. Foods such as puddings and salad dressings are manufactured alongside sales of honey, cooking oil, and dried fruits. The company, established in 1990, has 20 employees and operates in a warehouse of 3,000 square meters. Hansell sells its products to wholesalers such as Woolworths, Coles, and Franklin.
The ordering system is broadly similar to that of Berger Ingredients, with a few differences. Customers place orders via fax or email; the seller checks the order to confirm product availability and conducts a credit check on the customer. The customer is then sent an email confirming the order with the correct price and quantity. The order is subsequently entered into a management system called ZAPTA. Because the ingredients for Hansell's products are all sourced from overseas suppliers, there are sometimes delays related to customs and quarantine. Once the employee responsible for the order confirms that the required ingredients are available, the customer is given a shipping date. If the product is unavailable, it is backordered. Hansell holds an eight-week inventory of the foods it sells in order to maintain a sufficient buffer against delivery times from overseas suppliers.
After the ordering process is completed, a pick order is generated. The warehouse picks the product — if it is immediately available — and then it is consolidated and wrapped for dispatch. Large orders require hired trucks and are packed and wrapped on pallets (Mayr & Bock, 2002). Smaller orders, as with Berger, are shipped by box or carton via TNT Express, UPS, or another carrier. All orders, whether large or small, are sent with a barcode that allows tracking throughout the shipping process. QA is also an important part of Hansell's process, with inspectors verifying that the right product is sent to the correct customer and that all orders are filled to specification. If an item is rejected by a customer, it cannot be returned because it is a finished product. Therefore, if there is nothing materially wrong with the product, it is donated to a food bank or other charity. If the error lies in the ingredients, the product is discarded to avoid endangering anyone who might consume it.
In the end, these are two very similar companies that are working to grow as demand develops in their respective markets. Both small companies have areas requiring improvement — whether in the way they procure products or in the way they track monthly inventory. As is often the case with small businesses, there are likely other ways each could streamline operations. Nevertheless, the innovative approach of Berger Ingredients and the social consciousness demonstrated by Hansell show that both companies are doing many things the right way.
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