Read the scenarios below to answer the following question : After operating from the founder’s garage for three years, the team at Yebo Sauce, a condiment manufacturing business, that is dealing primarily in table sauces, has decided that it is time to expand their operation to the rest of Gauteng province. The implication of this expansion is that they need to introduce wide-ranging supply chain management processes within the business. As the newly appointed head for the logistics part of the operation, your primary focus is to align all employees and managers to the key concepts, processes and implications of adopting the necessary supply chain processes. Sauces & Spices Revenue in the Sauces & Condiments segment amounts to US$486.40m in 2022. The market is expected to grow annually by 3.49% (CAGR 2022-2027). In global comparison, most revenue is generated in China (US$38.24bn in 2022). In relation to total population figures, per person revenues of US$8.01 are generated in 2022. In the Sauces & Condiments segment, volume is expected to amount to 108.1mkg by 2027. The Sauces & Condiments segment is expected to show a volume growth of 0.2% in 2023. The average volume per person in the Sauces & Condiments segment is expected to amount to 1.9kg in 2022. Sauces and condiments are additional ingredients used during the food preparation process. The Sauces & Condiments segment covers ketchup, other sauces, spices and culinary herbs. Yebo Sauces have received a five-year contract to supply sauces to a tinned foods manufacturer in China. The supply chain team has proposed that the business should consider entering into a warehousing contract, so that they can manufacture products for this contract and store them in bulk. The leadership team of the organisation is not convinced that establishing a warehouse operation is the best option for the business right now, therefore they are hesitant to approve this proposal. Q.1. Compare and contrast private warehouses and public warehouses. Make a recommendation to Yebo Sauces as to whether they should use a private or a public warehouse. Justify your recommendation by providing at least 3 key application points.
Read the scenarios below to answer the following question :
After operating from the founder’s garage for three years, the team at Yebo Sauce, a condiment manufacturing business, that is dealing primarily in table sauces, has decided that it is time to expand their operation to the rest of Gauteng province. The implication of this expansion is that they need to introduce wide-ranging supply chain management processes within the business. As the newly appointed head for the logistics part of the operation, your primary focus is to align all employees and managers to the key concepts, processes and implications of adopting the necessary supply chain processes.
Sauces & Spices
Revenue in the Sauces & Condiments segment amounts to US$486.40m in 2022. The market is expected to grow annually by 3.49% (CAGR 2022-2027). In global comparison, most revenue is generated in China (US$38.24bn in 2022). In relation to total population figures, per person revenues of US$8.01 are generated in 2022. In the Sauces & Condiments segment, volume is expected to amount to 108.1mkg by 2027. The Sauces & Condiments segment is expected to show a volume growth of 0.2% in 2023. The average volume per person in the Sauces & Condiments segment is expected to amount to 1.9kg in 2022.
Sauces and condiments are additional ingredients used during the food preparation process. The Sauces & Condiments segment covers ketchup, other sauces, spices and culinary herbs.
Yebo Sauces have received a five-year contract to supply sauces to a tinned foods manufacturer in China. The supply chain team has proposed that the business should consider entering into a warehousing contract, so that they can manufacture products for this contract and store them in bulk. The leadership team of the organisation is not convinced that establishing a warehouse operation is the best option for the business right now, therefore they are hesitant to approve this proposal.
Q.1. Compare and contrast private warehouses and public warehouses. Make a recommendation to Yebo Sauces as to whether they should use a private or a public warehouse. Justify your recommendation by providing at least 3 key application points.
Step by step
Solved in 3 steps
