Wild D o g Coffee C o m p a n y

MBA-FPX5016
SASSO JOHN
Operations Management for Leaders
Assessment 3:Supply Chain Management Plan
 Wet R o a s tin g
Coffee Shipped
Mill/Dry P lan t –
Farm - o v e r s e a s to
Mill - U n i ted
C o lo m b ia U S P o rt
C o lo m b ia States

Espresso
Machine Coffee S h o p
S erv icin g
Co.

Syrups,
Paper
Dairy Farm coffee
P r o d u ct s
co n d im e n t s

S c e n a r i o 1 – Different v e n d o r s
 Wet
Coffee Roasting –
M ill/D ry
Farm - U n i ted
Mill -
States
Mexico
M e xico

Espresso
Machine Coffee S h o p

S erv icin g
Co.

D eliv ery
Vendor

Syrups,
D a iry Paper coffee
P r o d u ct s co n d im en ts
Farm

S c e n a r i o 2 – C o m b i n e Delivery V e n d o r
Supply Chain Comparison
Scenario 1
 Each delivery to Wild Dog
Coffee Company is made
by a different vendor
 Latin American coffee
 External vendor for
espresso machine service
Scenario 2
 Milk, syrups, cups, lids,
sleeves, and straws are
all delivered by the same
vendor.
 Hawaiian coffee
 External vendor for
espresso machine
service
Log istics
-While purchasing coffee beans from a Latin American supplier may
appear to be more cost efficient, there are other considerations. These
fees usually amount to between 14% and 60% of the purchasing price.
(Burton, 2013).
Costs include:
• Freight for cargo (fuel cost can vary)
• Management and contract manufacturing costs
• Inventory management performance (theft, errors in counting)
-Logistically, purchasing coffee beans from a corporation based in the
United States makes more sense for this business. Wild Dog Coffee
Company may obtain the beans they require immediately, avoiding
extended shipping times and unforeseeable hazards.
Log istics
-Wild Dog Coffee Company can place direct orders with suppliers for paper
products, syrups, and other items. If you order in volume, you may be able to
save money directly from the manufacturer. Due to the café's compact size,
there is little space for keeping additional goods.
-A food distributor might store and deliver Wild Dog Coffee Company's food
and supplies. They can establish a delivery schedule for perishable items to
be delivered more frequently and non-perishable items (cups, lids, sleeves)
to be delivered weekly.
-Because the business will have only two sites (likely inside the same city),
inventory placement can be handled by a food distributor.
Bottlenecks in the Supply
Chain
-A late delivery or an out-of-stock item can bring an entire supply chain
to a halt. By anticipating issues, Wild Dog Company can avoid or minimize
bottlenecks that impede company flow.
-By anticipating future bottlenecks, the business can continue operations.
As an example, "when a component's supply chain is disrupted by a
natural disaster, the corporation turns to air travel rather than ships"
(Sharp, 2017).
-A coffee shop may encounter excess inventory, which is why they must
place frequent orders to avoid consumables expiring. Frequent orders
enable the delivery of fresh coffee beans, syrups, and other goods. Stock
will need to be cycled in response to new orders.
 Wet
Coffee Roasting –
M ill/D ry
Farm - U n i ted
Mill -
States
Mexico
M e xico

Espresso
Machine Coffee S h o p

S erv icin g
Co.

Delivery
Ve n d o r/W a
rehouse

Syrups,
D a iry Paper coffee
P r o d u ct s co n d im en ts
Farm

Recommended Supply Chain

Supply Chain Recommendation
 Purchasing beans from Mexico rather than a South American country
can help eliminate some logistical bottlenecks and delays. Due to
the country's proximity to the United States, there are more
shipping options—land, sea, or air.

 While Wild Dog Coffee Company can place bulk orders directly with
vendors, they lack the warehouse space to hold big quantities.
Additionally, the issue of keeping things fresh to avoid waste must
be considered.

 By utilizing a supply chain that is capable of promptly responding to

potential impediments, Wild Dog Coffee Company may continue to
operate and satisfy customers while maintaining a high level of
product quality.
References

Burton, Terence T (2013). The 1 0 Hidden Costs of Outsourcing. CSCMP’s

Supply Chain Quarterly. Retrieved on September 11, 2 0 1 8 from
http://www.supplychainquarterly.com/topics/Procurement/20130621-the-10-h

idden-costs-of-outsourcing/

Sharp, Rachel (2017, January 12). The Challenge of Supply Chain

Bottlenecks. Procurement Leaders. Retrieved on September 11, 2 0 1 8
from
https://www.procurementleaders.com/blog/blog/the-challenge-of-supply-c
hain-bottlenecks-671187#.W5foyOhKiUk