Tuesday, August 26, 2008

MSMW Case Study: Possible Supply Chain Benefits

MSMW Case Study: Possible Supply Chain Benefits

MSMW might consider entering a supply chain arrangement as a source of supply with Carrefour, Abella's, Spinneys, Lulus all major retailers in Dubai as this would be the most likely example of high inventory stocking levels thus are largest costs prior to sales.

Evaluation of MSMW's local/global product would have to be positive, as well as functional, and technical requirements would need to be met. However, with an upmarket product approach the actual preferred supply chain would be A&E (African & Eastern) and MMI (Maritime Mecantile International) where price, delivery, quality and reliability needs might be more easily met with smaller inventory requirements in smaller or less fequent cycles and match monthly customer markets forecasts. Especially exclusivity of the product would be assured as no Muslims or under-aged buyers would be permitted to enter and purchase the product perhaps increasing its allure to the general public.

African and Eastern


Palette-sized loads which conform to alcohol delivery dimensions would also allow partial loads and small orders to be fulfilled. Particularly supply chain alliances with Canadian alcohol exporters would possibly reduce collective delivery costs and assist distributors in filling out partial container loads of products. Our costs would increase on peak season demands which would conform to alcohol consumption patterns as our water product would be associated with ices, mixes, and minerals.

Canadian Alcohol and Spirits Companies

Some alliance or trade partnership with either local distribution company or with new to exporting niche market alcohol and spirits companies with a shared equitable distribution of earnings (inflated water prices for inflated egos) could preclude any needs for contracted warehousing and/or simplify logistics. It would also lower our overall risk for example, we could supply half-container loads instead of full and share the costs with another smaller new marekt entrant in a non-competitive product category.

Similar premium water products are sold exclusively under terms of supplier contracts in Las Vegas premium five star hotels. Dubai possesses in the range of, "more than fifty five star hotels... The Statistics Centre of Dubai notes a total of 302 hotels with 30,648 rooms with an average overall occupancy rate of 75.5% further supplemented 111 hotel apartments totaling 8652 serviced apartments with an average occupancy rate of 71.1% as of 2006. " (Costello, International Business Plan, 2008) All of these locally compete for consumer sales with often renovated and renewed lounge and bar facilities ranging from the ultra-chic to the common honkey-tonk.

For example Alpine Creek supplies 10,000 BC to the Las Vegas Hilton exclusively.

Similar supplier relationships might be favourably reviewed by Canadian hoteliers in Dubai such as:

Fairmont: Seeing rapid expansion in UAE with new plans for Abu Dhabi.

Four Seasons: No UAE hotels as of yet but a global network.

Progessive possible supplier roles abound and the simpler the better. If our product is designed and marketed correctly appeals for supplier relationships could be quite competitive in attempts to secure exclusivity. As demand grows then inventory may increase or conversely inventory might be highly limited also possibly affecting increased demand to maintain perceived exclusivity. We would want to minimize our direct and indirect costs and our management would prefer MSMW to function in a B2B environment. This would all require superior creativity carried through in successful global negotiation. Minimize storage times, minimize excessive packaging, move goods as little as possible, forecast and order fulfillment correctly, extensive strategic production planning required, superlative customer service required, consider moving entire export bottling facility line as close to Halifax Halterm container port as possible.

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