Question no 1

I The task consists in a critical reading and evaluation of the BlueGestus Cosmetic company growth business case, understanding the relationship between this case and the Supply Chain Management course content. I The task also consists in answering the followlng questions: o Calculate the Net Working Capital at the end of Irear 2022. Write down the main challenges BlueGestus has in 2023 in order to Irnprove It, o Write down the main risks l,rou encounter and foresee In the supply chain forthis growth project. erte down what would be forvou the actions and actlon plan you would put in place to tackle them. to Write down 3 indicators that are crucial for you in order to track the progress of the project and explain why. I The format is a WORD report (uploaded Into Moodle as a PDFI. If any calculatlon needs to be done. do it In Excel and copy-paste It in the Word doc and explain the different steps you used to get to the result. in fact, Blueestus has been growing a lot for the past 5 years. and now. David and his team are facing an issue that need to be addressed carefully. The issue Is that the site where they are based at this moment is too small to cope with the increase of production and sales they are expecting. Bluegestus goal in this growth project is to align the expected growth and needs with the design and sizing of the site. Manuel. the head of the Sales area has been doing a big effort on explaining the strategy to all our big and medium customers. and he foresees a 2023 sales increase oi 30% versus 2021 sales figure, which was 1.000.000 units. Current sales in 2022 are 1.050.000 units and will remain like this till the end of the year. Previous year's sales picture: David is happy on how the plan is working and in order to secure the mid and long terms he meets the marketing team in order to follow up on all the new product launches that should be ready between 2024 and 2026. Four projects are in the pipeline and the plan is as follows: Project 'l'ear Launch it 0! countries Expected Total Expected sales {units} sales {CI _-EEE-_ . . M_ 5 '-_ .2 - sauaeparrumxmas m_ l- There is a project that is already developed and is in the process of being produced and shipped to the warehouse in order to be stored and ready to he sold now in 2023. This is the main challenge to Manuel's team as he needs to make sure customers are going to take the new product in 2023. They are working on getting firm orders for the product to be bought. They expect to sell 75.000units in 2023. George is the head of Logistics. and he is struggling to nd a warehouse that fits the increasing demand of space they have tor the coming months. The goal for George and David is to buy a new place. Renting is not an option for them. They are in deep talks with different banks. Discussions though, are led by Ferdinand, the head of Finance, who is worried abdut haw all this growth wiii affect the net working capital of the company. At this time of the year, the balance sheet of the company shows the following picture: ASSETS llABIUTES Long Term assets Long Term liabilities Building . . Equity 22-500000 Machines and means . . Banks 4.500.000 m Total 27.000300 Short Term tiabilities 3 Debt 500.000 Accounts Payable 1.500.000 m Total 2-month Torstuasiunts 21mm The budget for the new warehouse is 50.000.DDD. It must be bought before the end at the year. the nancial plan for that is that BlueGestus will use its cash to pay the 10% at the building and the bank will lend the other 45.000.000C to BtueGestus as a long-term debt. (in top of that we are negotiating to get another 1.500.000: from the bank belore Ion-year end, in order to buy more machinery and means. Those 1.500.000'1 will be as a short-term debt. Apart from the changes above, Ferdinand does not expect to have any change in any other account within the balance sheet before the end of 2022. Even having this big project ahead, David cannot forget about the current daily activity of the business. He has had a meeting with both the head of Customer Service, Cesar, and George, Logistics guy. It looks like customers are experiencing Issues with the deliveries. For the past 3 months we have had 150.1200 shipments to customers. Even having an increase in the incidents report, we had never had more than one issue in a shipment complaint. The goal is to reduce the number of issues. The main issues encountered in this period are as follows: Issue ll of times occurred it: total lost C lost - -r one issue -Ii!_ .'_IEEE-_ _[EE__ ___ mm _E_ _ David is very worried about the situation and has challenged both George and Cesar to come up with solutions and a plan to tackle and mitigate the situation. Besides, tron-l now on, they will have a daily meeting to follow up the plan and its results. Unless we revert this situation soon, we could damage the big plans we have tor 2023