Supply chin and logistics management

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Business Finance

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* you have write about arij vegetable oil 3000 words

http://avod.om/us-en/

* when you finish from my assignment i have to submit in turnitin and that website its looking or searching in my assignment words if i taken from any resource of ( internet, students , books, newspaper ...) so you have be careful in that to not become higher then 5%.

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Explanation & Answer

Attached.

Running head: TRANSPORT AND LOGISTICS

1

TRANSPORT AND LOGISTICS
Name
Institute
Course
Date

TRANSPORT AND LOGISTICS

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Areej Vegetable Oils and Derivatives SAOG is a fast moving consumer goods company I
the business of manufacturing and distributing vegetable oil products mainly to its institutional
customers located in the Middle East countries. The company deals with a diverse range of
products including cooking oils, gee, sunflower oil, palm oils, margarine, and mayonnaise. The
company practices supply chain process including transport and logistics functions in all of its
branches to facilitate the movement of products from the point of manufacture to the point of
consumption which is the customers’ premises. The company operates under different brand
names that are suitable for its different markets. These brands include Jabar, Minara, Akhdar,
and Sohar.
The transfer of cargo activities from Muscat to Sohar will have affected the procedure
and operations of the company in many ways. For example, the company has been having a
concrete system of operation located in one location for its cargo services . The movement to the
new location will force the management to restructure most of its services to fit in the new
location, having a distance of the logistics department from the other departments in the
organization, most of which work hand in hand in achieving the company objectives.
The market for the company’s products will also be affected negatively in that it will lose
most of its customers in the previous market, as customers will need to travel long distances in
search of the products which were previously available within their vicinity (Murphy, 2018).
They will instead resolve to get alternative sources that are closer to them instead of relying on
the company which is inefficient. On the other side, the company will be obliged to put up new
strategies for its logistical operations where it will have to restructure new systems that will be
able to offer sufficient transport services from the new location in Sohar, these might be a
problem since the cost of transport will be higher than the present time.
The suppliers will also be affected through the shift of cargo services since they will be
tasked to longer distances in supplying materials to the company, while they also have a change
in their scheduling of fleet to fit the requirements of the company. Because of this, some
suppliers might do a cost analysis for their services to Areej and decide to seize their supplier
operations to the company if they do not experience benefits that they were experiencing in the
previous location. On the other hand, the company might require paying more to the suppliers so
as to retain them in the new location.

TRANSPORT AND LOGISTICS

3

The support industries will also be affected. Areej depends on the support industries for
help oi nth marketing of their products and vice versa. These industries are usually
complimenting the services offered by other companies and their shift in location translates to a
difference in the rate of support that Areej will receive from them (Bentley,2013). Factors such
as promotions and advertisements will be required in more intensity to help in creating a
provision for brand visibility within the new location as well as attract new industries who would
partner with the company to increase their market penetration.
SWOT Analysis
A swot analysis for the company after the movement of cargo services to the new
location will be as follows; one, the company will experience strengths in the new location
including competitive prices for the products which will be as a result of cost reduction in its
services from operating in the new location which is not inhabited with other competitors. The
companies that shift here will have the opportunity to start over from a ground level and have
their products reach the market as they wish.
The company will also have a large local market within the new location where it can
expand into, hence maximizing its sales and profits. On the other side, the weaknesses will be
long lead times after ordering for products since the suppliers will have longer distances to cover
since they will not be taking products where they used to before the company moved. It will also
be hard to integrate the functions and departments of the company because they will be
differentiated by location having them far from each other. This means that the logistics
department will work on its own separate from the rest.
However, the company will have the opportunity of growing its brand into new markets
that have not...


Anonymous
Very useful material for studying!

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