The Curious Case Of The Disappearing Nuts |

The Curious Case of the Disappearing Nuts

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The Curious Case of the Disappearing Nuts
Student Name:
Date of submission:
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From the case, there are cases of nuts being stolen under unclear circumstance which has made it
very difficult for the investigators to assess thee syndicate behind the shoddy business. The fact
that Alex Hernandez as he identifies himself knows so much about the process through which the
nuts have to go through for them to be transported to Ontario makes one to have a belief that he
is indeed genuine and knows his job only to later be shocked that it was a well-organized plan to
steal the nuts and the details he gave were all untrue hence being tracked is also a challenge
(Vigneron, 2017). The reason behind this is fact that the nuts are on high demand and they
rewards very well hence the idea where people are trying to make thing work out.
Explanation of the Californian Nut Industry Supply Chain
Producer Wholesaler Distributor Retailer Final consumer
The above diagram is a representation of the supply chain that is used in the supply of the nuts in
California. The Producer in this case the farmer in California who has invested in farming of nuts
and then sells them to companies that buy them in wholesale and transport them to Ontario for
processing (Hugos, 2018). The retailer is an example of the Ontario based firms that upon buying
them the nuts, they repackage them and sale them to final consumer in smaller units. The also
add value to the nuts by processing them. In this case, there is the farmer in California, and then
there are transport companies that usually bridge the gap between one market player and the
others (Stadtler, 2015). The Bulk Barn Foods Company limited is in this case the representative
of the retailer.
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Explanation of the Vulnerabilities in the Californian Nut Industry Supply Chain and How These
Are Being Exploited By Thieves
The lack of a tracking system that can actually track the movement of the trucks that are usually
charged with the responsibility of transporting the nuts is a key thing that has certainly lead to
loss of the nuts. The thieves are aware they can divert to any other route and they won’t be
noticed by anyone. It is indeed clear that there is a loop hole in that there is no guarantee that the
nuts will get to their final destination that was expected. Another key thing is lack of a system to
check the credibility of the documents being presented by drivers when they come to pick the
consignment. This is the perfect case here where the documents [resented are fake there is no
body by such details as Alex Hernandez as well as the plate number of the truck are not the
correct one hence it is hard to track the whole crime (Telep et al., 2014). This is a loophole.
Tabular Numerical Demonstration of The Value Of The Californian Nut Industry
Financial Value
No. of those Benefiting from the
American Pistachio Growers
association Annual sales
US $1.6 Billion
It benefited more than 3000
people who are members.
Endorsement deals from
British cyclist Mark
Cavendish, Jeremy Jones (big-
mountain snowboarder), and
the U.S. water-polo teams.
Very huge financial values
It benefited all the members of the
The value of each load
Each of them has been of
It has benefited over 3000 farmers
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computed based on the heists
that have taken place recently.
an average of US
plus their relatives. It has also
benefit all those who transport the
products, the retailers as well as
the wholesalers.
Tabular Numerical Demonstration of the Total Cost of Nut Theft To The Californian Nut
Amount Lost
In 2015
US $450,000 worth of products was lost by
Horizon. It was a load of Pistachios.
In 2014
US $7 million was lost.
In 2013
US $1 million including the $85,000, in the
Hernandez theft.
In 2012
$300,000 specifically in Tehama County this is
according to Anderson (2017).
Tabular Numerical Demonstration of the Cost of Nut Theft to the Californian Nut Industry at
Specific Points of the Supply Chain
Stage in the supply Chain
Cost Implications
The producer
Ends up earning less amount money since produce
is stolen before they are paid.
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The wholesaler
The reduced earnings due to a reduction in the
amount of the product being sold since a huge
volume is stolen without payments being made
(Liu et al., 2016).
Lack of business since they are no longer trusted
people thinks all of them are thieves this means less
Increased cost of stocking the product
End up being charged high prices in attempt to
recover the increased cost of operations.
Solutions for Preventing Nut Theft At Each Point Of The Supply Chain
1. Let there be a tracking system that will check the movement of the truck from the beginning of
the journey to its final destination. This will mean in the event that the driver tries to run away
with the product the system should be able to automatically prevent further movement of the
track. This will be key in ensuring that those who participate in this kind of activities are also
2. There should be a digital identification of the drivers’ documents just to ensure that all the
documents are authentic. This will ensure there are no cases of forgery as it has been witnessed
in the Alex Hernandez case.
3. The trucks used should be for specific brand just to ensure no any other person wakes up and
decides to steal the nuts as it is evident. By having specific branded trucks come for the products
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it will be very difficult for anyone to impersonate an employee in the attempt to steal the
4. The last one is the fact that there is need for serious checks and balances in that such kind
of consignment is checked and doubled just to ensure the information given tally with what
is the system in line with the same consignment. This will ensure there are no cases of
imposters taking the hard sourced product for free.
Tabular Numerical Demonstration of the Cost Savings To The Californian Nut Industry
If Your Recommendations Are Adopted
Cost savings
The cost of having to investigate the
crimes after the nuts have been stolen since
the system will now be tight in that it will
more than impossible for anyone to steal
the nuts. So the cost of investigating the
crimes in the attempt to understand what
happened will be minimized.
It will be reduce the cost incurred in
establishing the actual identity of the
persons who took the nuts under the guise
of being the transporter yet in reality they
were thieves.
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This will be able to reduce monitoring
costs as well as the costs incurred in
identifying the real registration as well as
the identity if the trucks that are involved
in the heists since it is usually very
complex and time consuming. So this
measure will reduce such scenarios.
This will ensure that overall cost of
recovering the lost nuts is reduced since
the checks and balances will omit any
cases of losing nuts thereby increasing
accountability in the involved firms.
The case has been well written with much emphasis being placed on the fact that there
are no systems in place to ensure accountability. This is also based on the understanding that
almost 90 percent of all the heists that have taken place since 2013 have mainly been as a result
of poor verification of document as well as lack of accountability. This is based on the
understanding that the task of verifying documents is left to a single person in that when he or
she makes a mistake then the whole system is messed up. This should not be the case due to the
fact that the load carried by these trucks is so valued in term of the financial implications hence
ought to be well assessed and the credibility of the whole consignment established or else there
will be crises.
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Anderson. Z. 2017. The Curious Case of the Disappearing Nuts. Retrieved from
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Liu, J.J., Wang, Z., Yao, D.Q. and Yue, X., 2016. Transaction cost analysis of supply chain
logistics services: firm-based versus port-focal. Journal of the Operational Research Society,
67(2), pp.176-186.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Telep, C.W., Mitchell, R.J. and Weisburd, D., 2014. How much time should the police spend at
crime hot spots? Answers from a police agency directed randomized field trial in Sacramento,
California. Justice Quarterly, 31(5), pp.905-933.
Vigneron, P . 2017. The Curious Case of the Disappearing Nuts. Retrieved from

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