We are sourcing our 12 oz. aluminum cans from Southern Virginia from one the largest aluminum product providers in the region, Ball Corporation. Since this is a domestic transaction we will not be using Incoterms but we still will negotiate a contract with the supplier. Ball Corporation has many corporate accounts that buy in much large quantities than we are currently capable so we are facing a higher unit price. Industry averages for companies our size indicate Patriot Brewery will pay $0.06 to $0.07 a can. Ball Corporation has an extensive distribution network and those cans, which are hard to ship because of their volume and weight, will be delivered to our manufacturing plant within one business day. Because of their superior logistics capabilities, we are using the Uniform Commercial Code FOB Destination, Freight Collected. We decided upon freight collected because of the difficulty and risk of damage associated with shipping aluminum cans.
We evaluated the options of sourcing just the aluminum can but Ball Corp has the ability to add labels. For only about $.02 a can we can help build a professionally developed
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Distribution
Our finished products warehouse is located on our campus as well, to briefly host finished product awaiting distribution. We have a simple distribution strategy. The first tier includes selling to a local to distributor: Wantz Distributors Inc. Beer at wholesale prices for bi-weekly deliveries. The second tier includes selling to local bars, liquor stores, clubs, and hotels on a weekly basis, again at wholesale prices to move more inventory and to stay competitive in the local market.
The goal of this distribution strategy is to mark up our prices minimally as we have to make some profit. However, due to the low cost of production and relatively low cost of expenses, our distribution strategy relies on moving large quantities of inventory consistently. The more volume we move, the more profit we will make (Refer to Appendix
Boston Beer strives to efficiently warehouse the raw materials that they need. At times this can be a struggle because of shortages. Sometimes this can be caused by weather or environmental conditions. Other times it is caused by the supplier switching products in order to meet their financial needs or the needs of the other companies that it supplies for.
In particular, promotions should target consumer who use paper-products and foams. Leveraging the company's highly trained sales personnel, relative benefits and long-term cost savings afforded by superior bubble product should be stressed. Additional promotional efforts should include direct mailings to potential clients in the US and Europe. Importantly, all promotional efforts must target packaging engineers.
This can be accomplished by using disciplined delivery time windows, developing close relationships with a small group of reliable transportation carriers, and shipping only what is needed at a particular time, which means small lots being delivered more frequently often using partially filled trucks” (Taylor, 2013, p. 6).
“How would you describe the costs of the proposed ballpark if you opposed the proposal?” Frame / Use the “evidence” provided in “class discussion” to support your viewpoint.
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
Distribution channels for when, how and where an organisation’s products are distributed to their consumers. [REFERENCE] The organisation needs to carefully place where they want to distribute their products. For instance, they may have an expensive handbag, so they it would make sense to place it in upmarket department stores and boutiques so that the product is seen as being more exclusive and it also makes it more difficult to obtain if they aren’t available everywhere. [REF] However, if the product is seen as too difficult to obtain, it could affect the overall opinion of the product, which could result in less sales as consumers in developing countries would not consider it a necessary purchase so may choose to go without it.
In this assignment, both control in the workplace and work satisfaction dimensions will be analysed at length. Relating them both to the case study of the Sports Direct Company and other relevant organisational theories; such as scientific management. Sports Direct was founded in 1982 by Michael Ashley in Maidenhead. In 18 years, ‘Mike’ Ashley expanded internationally opening stores in Belgium, and just seven years later listed his company on the London stock exchange. It was that listing that really kick-started Sports Directs’ exponential growth. 2 years later in 2009, Sports Direct established market leadership after their sales exceeded £1.0bn (Sports Direct, no date given). This information presents Mike Ashley as an entrepreneurial genius,
The purpose of this report to compare the current distribution system to a distribution system without the aforementioned limitations on which distribution centers are allowed to service a specific area. In order to determine which system would be better, Darby Company has gathered additional information about the costs of shipping to other areas. For example, the Ft. Worth center could also service Denver, in addition to its current zones, Santa Fe could ship to any customer and Las Vegas could ship to Denver, Salt Lake City, and Phoenix, as well as LA and San Diego. In Appendix 2.2B, specific costs of shipping from distribution centers to customers are detailed.
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
Another method of distribution that we will use to sell our products and services is e-commerce. With everyone using the Internet and technology at an all-time high today, this method gives the company a strategic technique to help sell these items for consumption. It allows for them to reach all customers, any genders and ages. This is beneficial because customers are more apt to purchase these items when they are eased into it and it is very convenient. More and more people are interested in clicking on a link to go directly to our website, see our menu, and place their order. Adapting to this fast pace environment is a great benefit for our company, especially since we send the items right to the customers. This process is easy and
Because Dollar General does not sell in bulk, they tailor their supply chain to focus on more frequent deliveries of goods to smaller stores. Although this creates some inefficiencies relative to their big box rivals who were able to ship larger truckloads to their stores, Dollar General benefits from a denser network of stores in many areas as they had more than twice as many US locations (11,061) as Wal-Mart (4,807) in 2013. Additionally, Dollar General owns all trailers moving to and from distribution centers, but subcontracts trucking [dollar general 10K]. This reduces their necessary capital investment, while retaining key distribution activities including control of the loading, unloading and delivery scheduling of products to both retail stores and distribution centers.
The discount come from the saving for deliveries, which turn less cost per bound. They also share distribution center to help save money.
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
As a consultant for Toys, Inc., I have been called in for my advice by the company’s president, Marybeth Corbella; on which of the two proposed options would be best for the company and for the customers as well. Toys, Inc. is a 20-year-old company that produces toys and board games, our company has a reputation built on quality and innovation. Although we have been the market leader in our field, the sales have become stagnant in recent years, and sales have begun to decline when comparing them to the sales in the past. With the company’s managers attributing the decline of sales on the economy, the company was forced to reduce production costs and layoffs in the design and product development departments; this action will hopefully increase