Highlights
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 promoted 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 meeting with the General Manager and present your launch plan for Pakistan.
You will need to determine the following for Pakistan:
1. Prepare annual Sales Forecast & on the basis of which prepare production forecast
Volume Forecast:
a. Consumer research of the idea, Full cream milk powder annual volume is 22.7 K tons. Past launches have shown that 60% of these consumers will buy the 1000gm and 40% will buy the 500 gm pack. The test was based on a price for the 1000 gm of $12(hypothetical).
A negotiating plan to determine shelf share and secondary placement s you want with the customer.
Selection of Manufacturing site & Production Start Timing
Transporter Selection and frequency of inbound shipments and monthly volume. 5) Finished Product Logistics Cost
PRODUCT SUPPLY
Product Supply deals with the questions 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 have to calculate manufacturing costs of the product for the final evaluation.
Sourcing and Plants:
Sourcing is an integral part of any launch plan, and your task is to determine the best possible solutions that links in with 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 worldwide. In order to provide your market with the new product, you will need to evaluate and source from two alternative locations.
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 transferred some of its Middle eastern production volume to Abu Dhabi plant by 1st Aug 2020, thereby freeing up some capacity. Production of any new powdered milk initiatives 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 finished products. You have heard from your Marketing colleagues 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 investment of $500,000, and is not considered to be strategic by the Product Supply organization.
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