Question

Afi Josephine & Daughters Company Limited is a small organisation that deals in the distribution of high-end fresh vegetables, fruits and herbs in Ghana. In its current operations, the company sources for its products from different farmers from different parts of the country and stores these in intermediate warehouses. Customers can then walk into a few of their outlets to place and pick up their orders. As an expert in supply chain management, you are to analyse the operations of the company and submit a report detailing the following to management of the company: a. An evaluation of their current distribution net works design, providing a description of the performance characteristics of the current distribution network. (8 marks) b. The types of customers and products which are best suited to the type of distribution design being used by the company and why? (6 marks) c. How they may exploit the use of online sales in the distribution of their products so as to improve the value provided to their customers and improve supply chain cost. (6 marks)

Answer 1

Here we will get into the topic where we will discuss the three cases as being the supply chain management expert.

Case 1:- The current distribution network identified in the above case is the indirect channel as it gets mentioned above that the company sources for its products from different farmers from different parts of the country and stores.

Two sources from the different parts of the countries the indirect channel is required as the geographical area is vast, which cannot get handled by the direct channels as it will require the indirect channels for the lots of intermediaries such as manufacturers, wholesalers, agents, and retailers.

Case 2:- The suitable customers and products which are best suited for the indirect channel get used by the company should get widely spread customers and consumer and industrial goods.

When the consumers get widely spread in means of the geographical area, the indirect channel is required because direct channels would not be able to transfer the goods from one place to another in such widely spread geographical regions. The main interests which get used during the indirect channel and widely spread customer should be the consumer goods and the industrial good as these goods are the most used goods which are acquired by everyone at every place.

Case 3:- They can exploit the use of online sales in the distribution of their products to improve the value provided to their customers and improve the supply chain course by charging them much money on necessarily. During the online sales, the Selleck charge the price according to him, and there would not be any bargaining because there is no option of that during online sales, and this is how they can exploit the use of online sales in the distribution of their products.