Bath-&-Body-Works (BBW) is an American brand of bath, beauty, and home fragrance products operating in 34 countries across six continents. BBW deals with several suppliers to obtain high-quality, environmentally friendly, and ethically obtained materials for their products.

(a) In Singapore, BBW has been working with a third-party logistics (3PL) provider to deliver its products across different stores. The contract with the current 3PL is close to completion after 5 years and BBW needs to renew the contract or engage a different 3PL.

Show how BBW should use the six (6) steps to sustain a relationship with the current 3PL or establish a relationship with a new 3PL. Do not provide a generic answer but discuss it in the context of BBW.

(b) BBW buys jasmine fragrance from the top producer in the world that is located in India (the producer only produces jasmine fragrance). The average demand for jasmine fragrance was 6859ml/month when the transport rate was 0.79/ml. Then, the demand changed to 7320ml/month when the transport rate decreased to 0.68$/ml and all other external conditions remained the same.

Explain, in your own words:
• the demand elasticity for jasmine fragrance (provide supporting calculations)
• the role of geographic specialization in this situation.