Profit model analysis of new tea industry from the perspective of supply chain

Darlington School, 30161 Rome, Georgia, United States

^* Corresponding author: rwang@darlingtonschool.org

Abstract

This study uses the example of Gu Ming analyzes the profit model of the new tea industry from a supply chain perspective, highlighting how efficient supply chain management contributes to profitability. Key findings include the benefits of centralized procurement, which reduces raw material costs through economies of scale, and the use of cold chain logistics and digital systems to optimize operations and minimize waste. Vertical integration, where companies control suppliers, enhances profit margins by securing material stability and lowering costs. Additionally, offering supply chain services to franchisees provides an additional revenue stream. However, these models may face limitations due to vulnerabilities in external supply disruptions and price fluctuations. The analysis primarily applies to large brands, suggesting limited generalizability to smaller companies. Future research should explore technological innovations and sustainable practices to further enhance supply chain efficiency and research differences between large-scale and emerging tea brands.