Supply Chain
TCI's Finest
MarleyCoffeelecturesnotes.docxKindly include the following information and expand on existing information
Include in the executive summary: The partners in the US, when Marley Coffee part ways with them and build a facility in Jamaica
Distributors of Marley Coffee
https://www.google.com/search?q=who+are+distributors+of+marley+coffee&sxsrf=AOaemvKbepux_mq9IavUOabHLx0KsmnaWQ%3A1637282858255&ei=KvSWYev4DqWIwbkP1J-6kAE&ved=0ahUKEwjrtab5maP0AhUlRDABHdSPDhIQ4dUDCA4&uact=5&oq=who+are+distributors+of+marley+coffee&gs_lcp=Cgdnd3Mtd2l6EAM6BAgjECc6BQgAEJECOhEILhCABBCxAxCDARDHARCjAjoOCC4QgAQQsQMQxwEQowI6CAgAEIAEELEDOg4ILhCABBCxAxDHARDRAzoECAAQQzoECC4QQzoICAAQsQMQgwE6CggAELEDEIMBEEM6CAguELEDEIMBOgcILhCxAxBDOgsIABCABBCxAxCDAToFCAAQgAQ6CAguEIAEELEDOgYIABAWEB46BQghEKABOggIABAWEAoQHjoFCAAQhgM6CAghEBYQHRAeOgcIIRAKEKABOgUIIRCrAkoECEEYAFAAWN9TYL1YaARwAHgAgAHKAYgB-iuSAQYxLjM5LjGYAQCgAQHAAQE&sclient=gws-wiz
Network Design
Phase 1 - SC Strategy
· Providing customers with a unique blend of organic coffee. Thus they are more for differentiation. Aims to provide high availability of a variety of high quality blends at reasonable prices. Its competitive strategy is built around providing the customer with convenience, availability, and responsiveness.
· The company reach is a global market, hence there is global competition
· Growth will be accomplished through partnerships and acquiring existing facilities
· Any internal constraints as it relates to capital, growth or existing network.
· Include a network design chain diagram
Phase 2 – Regional Facility Configuration
· identify regions where facilities will be located, their potential roles, and their approximate capacity
· Jamaica – Farm/manufacturing or processing plant (why), DC (where?)
· Demand forecast in regions– homogenous products requirement which favors large consolidated facilities (exclusive distributors for regions)
· Identify demand risk, exchange-rate risk, political risk, tariffs, requirements for local production, tax incentives, and export or import restrictions.
Phase 3 – Potential Desirable Sites
· Sites should be selected based on an analysis of infrastructure availability to support the desired production methodologies.
· Farm (Blue mountain peak (Portland) – good climate for coffee farming) (Plant (Kingston – manufacturing Hard infrastructure - availability of suppliers, transportation services, communication, utilities and warehousing facilities
· Soft infrastructure requirements - skilled workforce, workforce turnover and community receptivity to business and industry
Phase 4 – Location choice (Jamaica)
· Select a precise location and capacity allocation for each facility.
Transportation Network Design – Tailored Network
Inbound Transportation
· Jamaican Farm – Shipment to Manufacturing plant via truck-loads
· Regional Suppliers – Direct Shipment Network to Single Destination - shipment to manufacturing plant using intermodal (containers via water and then trucked to manufacturing plant. OR All Shipments via Intermediate Transit Point with Cross-Docking
Outbound Transportation
· From Manufacturing plant to Distributors - Direct Shipment Network to Single Destination using intermodal (water and truck)
· From Distributors to retailers - Direct Shipping with Milk Runs
· For online customers – package carriers
Revenue Management
Revenue management is the use of pricing to increase the supply chain surplus and profit generated from a limited availability of supply chain assets.
Revenue management may also be defined as the use of differential pricing based
on customer segment, time of use, and product or capacity availability to increase supply chain
surplus and profits.
· Using revenue management, the firm could do much more as long as there are customers whose willingness to pay varies with some dimension of the service such as response time.
· One approach is to charge a lower price to customers willing to commit their orders far in advance and a higher price to customers looking for transportation capacity at the last minute.
· Another approach is to charge a lower price to customers with long-term contracts and a higher price to customers looking to purchase capacity at the last minute.
· A third approach is to charge a higher price during periods of high demand and lower prices during periods of low demand.
Chopra, S. & Meindl, P. (2013). Supply Chain Management: Strategy, Planning and Operation, 5th Ed. Pearson Education, Inc. New Jersey
Sourcing
Sourcing is the set of business processes required to purchase goods and services. These decisions affect the ability of the firm to be both responsive and efficient.
Marley Coffee include input from its 52 acreage farm in Jamaica, but the product is expensive and there is a limited supply. This has the potential to reduce the supply chain surplus. The company decided to source coffee beans from multiple third parties to complement its own supply with the aim of improving the supply chain surplus. Using multiple suppliers ensure a certain degree of competition and also lowers risk by providing a backup should one of the sources fail to deliver.
The supply sources, therefore, are Cost efficient – and are given large, steady orders. Ethiopia, “the birthplace of coffee” for instance, is where most of the coffee beans come from as it is an input in almost all the blends offered. Additional supply sources include suppliers from South and Central America. (you can add why these areas, what are they known for)
Suppliers are not selected solely on price. Other factors such as the total cost is influenced by supplier terms, delivery costs, inventory costs, warehousing costs, quality costs, reputational impact, support costs, other costs such as exchange rates, taxes, and supplier capabilities such as replenishment lead time, on-time performance, and flexibility.
On such applicable criteria, we engage suppliers in negotiations and enter into supplier agreement contracts for procurement.
E-business Opportunities
https://www.vskills.in/certification/blog/e-business-and-supply-chain-management/
IT in the supply chain
https://www.vskills.in/certification/blog/role-of-iy-in-supply-chain/
Unit 6 (slides 9-26)
E-business framework to evaluate company’s potential
https://iveybusinessjournal.com/publication/the-strategic-management-process-in-e-business/
