Seedo PDF

Preview

Summary

Seedo is a hypothetical brand trying to enter in Pakistan...

Description

Seedo Full Cream Powder Milk’s

COUNTRY MANAGER CHALLENGE BRIEF

EXPECTED OUTCOME: 1) Submit solution to on [email protected] by July 15th, 2020 . 2) Base format is PPT but is not restricted to. (Be Creative!)

ALL ABOUT THE RULES: Criteria There is no Right or Wrong Answer! We will be assessing the team’s submission based on the fol lowing criteria: Clear Logic Feasibility & Relevance Creativity Holistic Plan

30% 20% 20% 30%

Ground Rules: 1) Each team will compete fairly and uphold business ethics. Unfair and unethical acts will be noted and be grounds f or rejection which means 0 marks. 2) Each team must send in deliverables by specified deadlines. Failure to do so will be subject to disqualification

CASE OBJECTIVE:

Seedo(Hypothetical Brand) is one of the leading Full Cream Powdered Milk having a global footprints planning to enter in to Pakistan Marketplace.You have been pr omoted to the Supply Chain Manager position within the Seedo Milk division . As GM planning to launch Seedo in Pakistan Market. You need to prepare for your mee ting with the General Manager and present your launch plan f or Pakistan. You will need to determi ne the following for Pakistan: 1) Prepare annual Sales Forecast & on the basis of which prepare production forecast  Volume For ecast:  a. Consumer research of the idea, Full cream milk powder annual volume is 22.7 K tons. Pa st la unches have shown that 60% of these consumers will buy the 1000gm and 40% will buy the 5 0 0 g m p a c k. The test was based on a price for the 1000 gm of $12(hypothetical). 2) 3) 4) 5)

A negotiating plan to determine shelf share and secondar y placement s you want with the customer. Selection of Manufact uring site & Production Start Timing Transporter Sel ection and frequency of inbound shipments and monthly volume. Finished Product Logistics Cost

PRODUCT SUPPLY Product Supply deals with the question s and problems of the manufacturing, purchasing and logistics processes. Based on the information given below, you should decide on the location where to produce the new product (Seedo). Depending on this result, you ha ve to calculate manufactur ing costs of the product for the final evaluati on.

Sourcing and P lants: Sourcing is an integral part of any launch plan, and your task is to determine the best possible solutions that links in w it h your vision. The decision of where to produce is not made on a national, but on a global basis. The purpose is to do what is best for Seedo worldwi de. In order to prov ide your market wit h the new product, you will need to evaluate and source from two alt ernative lo cations. Right now, production for Seedo is in, Istanbul Turkey. The Turkish plant currently is manufacturing near the peak of its capacity. The second location is the Dairy Product plant is Al Jubayl, located in the Kingdom Of Saudi Arabia. Al Jubayl has just undergone a major re- organization, thereby making space for additional production lines. Al Jubayl currently produces Dairy products & flavored milks etc. It has been announced that Istanbul will have tr ansferr ed some of its Middle eastern production volume to Abu Dhabi plant by 1st Aug 2020, thereby freeing up some capacity. Produc tion of any new powdered milk in it iatives can thus only be scheduled as of that date. It usually takes 4 weeks from the start of production to the start of shipments (SOS) to send out to customers the f inis hed products. You have heard from your Mar keting coll eagues that to launch Seedo earlier than Aug 2020 would be desirable. The only option to do so from a product supply standpoint would be to set up a powdered milk production line temporarily in Al Jubayl. However, this will require a one-time inve stment of $500,000, and is not considered to be strategic by the Product Supply org aniza tion.

Manufacturing and Logistics Costs: On top of the one -time startup cost payment differen ce between the Istanbul and Al Jubayl pl ants, there are cos t differences that will re sult from the different pr oduction costs per unit. Your cost analyst has shared with the manu facturing and l ogist ics cost for cases of the 500 grams and 1000 grams Tin Packs to help guide your decision. (Please note: Cartons are a mea suring unit. One case contain s 8 sellable units of Seedo. Product Line 500 gram Seedo 1000 gram Seedo

Production Capacity (Carton* p/Month) Istanbul (as of Aug 2020) Al Jubayl (w/ $500,000 investment) 10,000 12,000 8,000 9,000

Product Line 500 gram Seedo 1000 gram Seedo

Minimum Order Quantity (Cartons* p/ Month) Istanbu 4,000 3,200

Product Line 500 gram Seedo 1000 gram Seedo

Container Capacity (Cartons* p/ Month) Istanbu 2,000 1,800

Al Jubayl 3,720 2,790

Al Jubayl 3,720 2,000

Constraints: Minimum Order Quantit y applies to a single product line.

Import Logistics: Getting the product to Pakistan contributes to the bulk of Logistics cost. You ha ve to ma ke smart, informed de cision based on your choice of plant, and the launch and lever age plan. Be sure to include in your plans the frequency of shipments and the volume (in containers) brought in per month.

Shipping Lines Maersk Hapang- LIoyd NYK Hanjin

Shipping Lines Maersk Hapang- LIoyd NYK Hanjin

Transit Time days Istnbul 15 17 14 11 Haulier Costs ($/ container) Istanbu $2,520 $2,635 $2,780 $2400

Jeddah 7 8 7 Not Available

Jeddah $1,050 $935 $1200 Not Available

Taxes are levied by the Government of Pakistan on all imported goods, In your calculations assume a 25% tax rate on cost and freight.

Example: Tota l Tax Due= 1((Cost of 1 case X Total Ca ses in 1 container) + Haulier Cost) X 0.25

Warehousing Seedo believes in the best possible quality being delivered to the consumer every tim e and hence stores all its product in a single, state of the art facility in Karachi. Products are stored on individual pallet s, the rent of which is $27 a week. Your main task is to i dentif y the stock levels r equired to sustain your launch plan. Make sure that you clea rly identi fy the stock level s (Safet y/ Intensive) and tie them in wit h your plans from Sa les and Marketing. Pallet Occupation Product Line 500 gram Seedo 1000 gram Seedo

Cartons p/ Pallet 30 20

Finished Product Logistics Cost (FP LC) Once you have det ermined your sourcing pla ns (Logistics, imports and Sourcing Stra tegies) you ha ve to come up with a final cost for the year. To help you along the way the formula for determining FPLC cost is given below . FPLC= Total Logistics Cost ($ per Year) / Total Ca ses Moved per Year...