The type of supply chain you will be using The i
This work must be based on the attached information in the Word document.
This assignment must include:
The type of supply chain you will be using
The implications of sourcing/procuring of natural resources
Approach to manufacturing-driven supply chain strategies
The friction of distance issues and how you plan to diffuse congestion through advanced technology
How do you plan to mitigate the supply-driven imbalance
How do you plan to mitigate the demand-driven imbalance
Cite your research.
Use APA format and MS WORD.
Your paper (content portion) must be a minimum of three pages.
Business plan
Our Company
Fresh Fruits is a Latina-Owned company founded in California, 2017. Fresh Fruits company provides wholesale distribution services under the highest quality and hygiene standards, and at the best market prices. Our team imports and supplies quality fruit to retail stores, industrial kitchen industries, restaurants, and hotels. We comply with the highest quality standards like ISO 22000, to benefit how we store our products, deliver our products, and most importantly serve our consumers.
Problem statement
Fruits play a major role in the health of human beings. The benefits of fruits are as follows; fruits help in controlling diseases, fruits are the main source of vitamins and minerals in the human body, fruits also enable the person to enjoy a variety of flavors and textures, and finally, fruits are important because they help to maintain both physical and mental health of a person. Lack of fruits in a particular country or a region can be a major issue. Lack of fruits can lead to the development of various diseases. Also, fruits are essential elements in the aging population.
The lack of fruit business in the country is due to ignorance and lack of information among the business investors. Also, the sector of agriculture needs to initiate strategies that enable farmers to be able to plant fruits in America. Most of the fruits that are used in the United States of America are being imported from outside countries. (Mostafidi, et al. 2020) This issue makes it difficult for investors to be able to invest in these business types. The solution to this is to improve/build the sector of agriculture in the United States of America. When the production of fruits is high, the supply of fruits in the United States of America will increase. This action will make it easier for many businesses to develop and prosper because they will be able to avoid the costs of importing fruits from another country.
In conclusion, it will be important for many businesses and also the economy itself to invest in agriculture. Businesses will be able to provide employment opportunities and the government of the United States of America will benefit from the revenue that comes from these businesses. Finally, the community will benefit more because they will have plenty of fruits to choose from to be able to live in a healthy and sustainable way. As the popular phrase goes "An apple a day keeps the doctor away".
The product we import and distribute
Our business currently deals with three products: bananas, avocados, and oranges. With these products, we believe that they will be able to satisfy the needs of our customers in California and across the United States of America. In order to obtain the full satisfaction of each customer, our purpose and our commitment are to provide the best solution using products of the best quality and competitive prices. The two fruits, bananas and avocados are imported from our neighboring countries. For instance, we import bananas from the three neighboring countries, these countries are Guatemala, Ecuador, and Costa Rica. While the avocados are imported from Mexico. Finally, the oranges are carefully selected, then purchased, and shipped from our neighbors in the East coast, Florida.
Our company complies with the highest quality standards such as ISO 22000, to benefit the way we store our products and deliver our products. Once these products arrive at our warehouse, we prepare their handling, picking, and distribution. In our stores, the correct storage of fruit, given its characteristics, is complex and requires the investment of resources and personnel for its proper functioning. Our company has storage facilities of 58,137 SF equipped with temperature control, ensuring proper storage and guarantees of food consumption. In addition, our company has a team specialized in picking: the ability to prepare and process orders in a personalized way for each customer. Correct packaging and preparation for transport are also ensured in this process. Finally, distribution and delivery: the transportation of fruit is a delicate process that requires vehicles to be adapted to our standards. At Fresh Fruits, we have 20 vehicles dedicated to distribution throughout California, equipped with remote location tracking through GPS and monitoring systems of temperature in real-time. When we need extra help due to high demand, we work with a third-party company that offers us solutions and resources to cover our supply chain. It provides us with economic benefits and a reduction in both logistics and personnel costs when managing the supply of fruit.
Our company initiates a strategy to sell the fruits as a whole and to make fruit juice from the fruits. With this strategy, our company will be able to associate with new businesses such as supermarkets in the distribution of our products. Also, we intend to open shops in major sub-towns in the state of California. This idea will enable us as the company to distribute our products and most importantly our customers will be able to get our products in season. This will create a greater customer experience hence resulting in improving our business.
How we import our products
Since most of our products are sourced from outside, our business imports the products in two ways. For the products that we import from outside our country, such as bananas and avocados, we usually use maritime transport and trucks as a means of transport. The international transport of goods is carried out mainly by sea. In addition, transportation with neighboring countries is carried out by the road. We have employees based in these countries in order to have closer contact with foreign suppliers. Their main duty is to look for these fruits, analyze their quality, buy them, and cargo them to the United States of America. While in the case of oranges, oranges are available in our country, our business currently uses trucks with a mode of transport from Florida. Fresh fruits work with five farmers who are able to send our product to California upon our request. The structure of our business is a partnership, we partner with various businesses in the states such as hotels and supermarkets. We sell our product to our partners at wholesale prices, so they can also be able to make a profit from our products.
Reasons why our plan is feasible
Our plan is feasible for the following reasons: first, there is a high demand for fruits like bananas, oranges, and avocados. This helps us grow as a company and strengthen ties with our business partners. The relations between our company and our national and international suppliers are very close in the field of cooperation. In terms of quality, our suppliers meet or exceed the expectations or requirements of our purchasing team. In addition to meeting our current requirements, our suppliers demonstrate a continual improvement in their performance. Thanks to the contribution of our suppliers and our quality policy, our company has an ISO 22000 certificate.
This ISO 22000 certificate helps us to the current prestige of our company. It allows us to reinforce trust between current and potential customers according to the company's ability to consistently supply our agreed products and/or services. Also, it helps us increase customer loyalty, through repeat business and the referral or recommendation of our company.
Finally, our plan is feasible because we have a skilled workforce. We have qualified employees who help us with the best management of the warehouse, picking, and distribution of our products in the region of the state of California.
The image of our company is constantly improving without forgetting the solid foundations that have characterized our company since its inception: Commitment, Quality, and Service
The expected outcomes that back our approach
The expected outcome behind our approach is; our business tends to open branches across the state of California. We strive to make our product accessible to our customers. Also, in five years, our business intends to extend our services to the states that are neighbors to California (Oregon, Nevada, Arizona, Mexican state, and Colorado). In a ten years period, our business intends to offer services in all the states of America.
Expand Your Business Plan
The business of selling imported fruits in the country may at some point prove difficult as it requires a lot of initial investment, for this reason, the management will need a sophisticated management plan to create the surety on the intended goals. The business must also have a good financial plan that will ensure every coin invested into the business is properly utilized and well accounted for. Our business will require a great deal of capital to start, thus a good plan must be placed with considerations of all the business aspects such as licensing and acquiring other permits for the business. As the business will be mainly engaged in import business it is important that a serious background check be done, and market prices compared.
Financial forecast
One of the most important goals of the business is to have a steady financial flow while profit maximization is the main objective. The business, therefore, has a forecast of profit-making right from the beginning of the business and can be achieved through various strategies. The main strategy of the business is to reduce the money channel process so that the finances are handled by a selective few. This will encourage accountability and promote transparency in handling finances. The management team will consist of a financial manager that will have a deeper insight into financial management. The chain will also include a sophisticated financial program such that all records are recorded safely in computers, the most suitable method will be the use of personal capital. This is an accounting system that allows the user to keep track of all financial accounts in one platform, such as bank records, mortgage, and investment accounts (Ragnedda,2018).
Operational plan
The operations plan includes the details of the daily activities that are to be carried out and how it should be conducted in the business. An operation plan is key as it determines the success of the business or any shortcomings that may be faced by the business. The business management will be in charge of allocating different duties to associated parties as this will promote the speed of work and avoid conflicts in the course of work. The team will comprise sections that will also need managers to help run and monitor the rest of the employees thus division of labor and specialization will be very important to implement (Tian,2021).
Competitors
The business must be well aware of the market status so that it may compete favorably thus guaranteeing survival in the market. The main competitors of the business are already established fruit sellers such as Gebbers Farms and Borton and Sons, these two companies have had a good run in the market, thus, are serious competitors in the market.
Customers and Marketing plan
The business looks to serve a very broad market. Fruits are very important for the healthy living of an individual therefore it is forecast that the majority of the public will provide a market for the business. Other than these, the business intends to supply fruits to hospitals in the country and schools as these places’ fruits are always in very high demand. Fruits provide the body with vitamins that boost the immune system of the body and produce energy in the body thus keeping the body and person healthy and vigil (Pal et al. 2021).
The business will use a simple marketing strategy to reduce costs while reaching the largest market possible. One of our first goals will be to establish a social media marketing plan. This plan must include an audit of the situation of Fresh Fruit's profile, the goals that we decide to meet in the future, and all the tools that we want to use to meet them. Developing a marketing plan on social networks will allow us to better evaluate the effectiveness of our actions, but it will also be a measure with which we can determine if we are being successful or not. In addition, the business will utilize radio stations in advertising and television channels occasionally. Also, the business will use gifts when a customer buys goods and offer packaging services. Posters will also be used to advertise the business and products thus ensuring a wider market.
Fresh Fruits SWOT Analysis
Fresh Fruits, as a supply company needs a SWOT analysis to ensure it stays in the market and continues to make a reasonable profit. The strengths and the opportunities of our company need to outweigh the weaknesses and threats. Our analysis starts from the site where the fruits are growing, how the fruits are transported to California, their safe storage, transportation to the market, and finally when they are being sold to customers.
Strengths
Fresh Fruits company has numerous strengths. One of our main strengths is the supply chain. Fresh Fruits actively works with the suppliers of origins, it begins with the investigation of producers, suppliers, and transporters on behalf of the buyers in the countries from which we import the fruits. Our buyers make sure to investigate the quality of the fruits in addition to carrying out audits to guarantee the safety of each of the facilities and transportation vehicles through which our products will pass through before arriving in California. As for packaging, our producers work with packing companies that have technological systems to receive the fruit and separate it according to size and quality.
Once the fruits are ready to ship, the fruits are shipped by sea and by land to California. For the products that we import from outside our country, such as bananas and avocados, we mostly use maritime transport and trucks as a means of transport. The international transport of goods is carried out mainly by sea. In addition, transportation with neighboring countries or in the USA (Florida) which we purchase locally is carried out by the road.
Once the fruits arrive at our warehouses, they are carefully stored by type according to their characteristics. Fresh Fruits have both equipment and personnel needed for storage for the correct handling of merchandise. Due to the delicate nature of fruits, we require special transportation from the warehouse to the destination of the final consumer. We use our own company vehicles that are equipped with facilities to control the temperature of the fruits in transit. Our vehicles also have their locations tracked to ensure they end up at the correct destinations. This idea ensures that the highest quality and hygiene is being maintained throughout the distribution process and transportation. This makes them very competitive in the market as customers always yearn for exemplary services. Fresh Fruits complies with the highest quality standards ensuring that your business legally operates within the established standards.
Finally, Fresh Fruits has a solution for high demand, we work with an outsourced company that offers us solutions and resources to cover our supply chain. It brings us economic benefits and a reduction in both logistics and personnel costs when managing the supply of fruit.
Weaknesses
Fresh fruits require a strong capital investment. A great deal of financial power needs to be invested as the business requires many people and experts working throughout the supply chain. For instance, investing in refrigeration experts, drivers, buyers, and experts that required within the foreign country, who ensure that the entire process meets the highest quality and safety standards. Our company requires a complex plan. A detailed and well-reviewed plan of how the fruit is acquired in the foreign country in good condition, safely transported to California, stored, distributed, and finally delivered to consumers. The plan is drawn up and everything must be included; otherwise, the deployment process will be incomplete.
Another weakness for Fresh Fruits can be any human, mechanical, technological, administrative, or logistical error that leads us to incur extra expenses through the supply chain. These extra expenses are transferred to the final cost of our products, which means an increase in the final price.
Finally, staff turnover is a great weakness these days, excessive staff changes can cause problems such as the bad reputation of our company, higher payroll expenses, instability, uncertainty, and insecurity for workers.
Opportunities
Fresh Fruits see the trend in consumption as a great opportunity and, in turn, the great demand for fruits such as bananas, oranges, and avocados, which generate change in the lifestyle of people. This response helps us grow as a company and strengthen ties with our business partners. More than that, the community will benefit more because they will have plenty of fruits to choose from to be able to live in a healthy and sustainable way.
Fresh Fruits company intends to widen its market by supplying fruits to the hospitals and schools where the market is large. The company plans to use a social media as a marketing tool. This will ensure to reach a much larger market covered at a low cost. For example, online business is on the rise as many people are always busy on the internet learning new trends, people would come across our website and start to engage by getting to know our products and see which are available and where to order them. When someone from a different location orders fruits and shares the experience with neighbors and friends’ new markets are reached.
Our company is focused on opening branches across California. This will increase the market served and consequently the profits. An increase in profits of the company means that it is flexible for further expansion. In addition, Fresh Fruits is preparing a business plan to operate soon in all the states of America.
Threats
For our company, the main threat is climate change. Fruits, vegetables, and plants all require carbon dioxide to grow and could not survive without it. However, because of global warming an increase in carbon dioxide emissions into the atmosphere will make it harder for farmers to work. Climate change affects agriculture directly through changes in the frequency and intensity of extreme weather events, and indirectly through the spread of stressors such as weeds, disease, and insect pests.
Fresh Fruits also sees any unexpected events that could disrupt our supply chain as a threat. Geopolitical tensions, natural disasters derived from undeniable climate change, trade wars led by a rise in protectionism, the advancement of ICTs, increased wages in developing countries, etc. Now, we have been at the stage of the COVID-19 that has compromised and challenged globalization and international relations. The chain of events leading to the spread of the virus has resulted in distortions on the demand and supply sides, exposing weaknesses surrounding global supply chains.
Another threat is the competitors who are also selling fruits. The Bostons and sons together with Gebbers who have joined hands resulting to dynamic organization with strong volume and excellent product mix (Thornton, 1989). These competing firms have their own farms rather than importing fruits making their processes cheaper and hence sell their fruits at a lower price.
Finally, although the fruit market has exceptional strengths and opportunities, the heavy capital investment required to sustain the import process continues to be a great challenge for our company. The final cost of the imported fruit ends up being higher than the price of the competition that grows its products in our country.
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