- The best way to deal with the crisis and break in the supply chain would be to fill the gap with the alternative channel of supply chain. In this case, instead of using the dockyard and shipping service, the use of postal and air freight would be beneficial. Although the cost of air freight and postal service will be twice that of sea freight, the Broadway coffee can introduce an option of express delivery. Here an extra cost would be charge from the customers as premium who would want to get their products quickly. Later this premium will be used to subsidize the costs of normal delivery. This is a marketing tactic to make the customers pay more for a faster and better service. Although the delivery time will be same for both the customer paying the premium and the normal service, Broadway coffee should delay the delivery a little for customers who are using the normal service. This will justify the charging of a premium on an express service and at the same time, the customer would be willing to pay extra premium in order to get their products quickly for special occasions like marriages, child birth and birthday events.
- The best strategy is to use the airmail, and postal services for the product. The company cannot stop these services as they are the specialty services of Broadway Café. Another strategy for the company could be to look for alternatives from nearby places where postal service and air freight is not as expensive as China’s. The company can find some unique items in nearby countries and can use it in order market its exclusivity and uniqueness of Broadway Café. However, it will require time and in the meantime, Broadway café should continue using the airfreight and postal service with an option of normal and express delivery.
BC # 12
- It will be tedious for the manager or person posting the sales in a separate system. It will also be costly to buy a different system for each different item in the stock. Another issue will be lack of coordination between the system such as items in inventory, order points, and determining the season or fast sales of an item at different times. These issues will lead to business being not performed efficiently and a great deal of effort will be required. Hence, it is not good for the company to use separate systems for different items as the company will not be able to forecast the sales or to use the sales record to their advantage.
- In case of such an event there will be an over stock of some items, and under stock for the others. In each case, the company will face a bullwhip effect and its inventory and sales recording costs will rise creating inefficiency in the organization and the operational costs will start rising.
- There will be no coordination and hence the right time to market each product will not be known. The right market audience will not be targeted and hence the marketing campaigns will be unlikely to yield good results.
- The major problem will be business and supply chain planning. It will involve over and under inventory of certain items. It will also create a bullwhip in the organization’s supply channel. There will be lack of coordination in marketing. The efficacy of marketing campaign will be low. Other than that, the operational costs will rise as a result of ineffiency. Also, the organization will have to hire seprate people to record the sale of different items, and it will be very costly. If the organization chooses one person to record the sales, it will be time consuming, and the person may not keep up with the pace of sales. In other words, the total business will suffer and record maintained will be very poor.