Question
The olive oil company Ybarra produces virgin and extra virgin olive oil in different presentations: 1 L, 3 liters and 20 liters. The last two
The olive oil company "Ybarra" produces virgin and extra virgin olive oil in different presentations: 1 L, 3 liters and 20 liters. The last two are only supplied wholesale to restaurant companies that make preparations in commissaries. A few years ago, only the finished product was imported from Spain, but the company developed suppliers in Mexico because it wanted to take advantage of the cost of labor in the Aztec country. Currently, it has two suppliers located in milpa alta mayor of XDMX and in Perote Veracruz with a supply of 60% and 40% respectively. The Ybarra company and the suppliers work in an integrated manner. There are no claims regarding the quality of the raw material, but in some periods of the year it is insufficient. The company has 3 olive oil production plants, one in the north in Monterrey. The second in the center in Quertaro and the one in the south in Tabasco. It does not have distribution centers. It supplies the main supermarkets in the Mexican Republic and some wholesalers such as regional grocery stores. It also manages exports to Spain because the plants in the European country do not have the capacity to supply the entire market. In the case of the export product, it must be labeled in such a way that it complies with the regulations of Spain. The same occurs for exports to South America, the United States and Canada. In Spain it reaches a distribution center that supplies different countries of the old continent, in South America it reaches distribution centers in Argentina, Brazil and Chile. For the United States and Canada, it supplies different distribution centers throughout those countries. In recent times, it has presented shortages in some points where its product is sold and with its wholesalers and restaurateurs, which has impacted on sales volume. last year the profit margin was barely three points above bank performance. That has prevented it from fulfilling its expansion plans. Regarding the supply, the plants in Mexico have been insufficient for the demand, but importing olive oil from Asia turns out to be too expensive, but not impossible because there are international trade agreements with some Asian countries. The distribution transport is its own, it has a fleet of 10-ton trucks, only in cases scheduled for export larger units are rented as trailers of one or two containers, the packaging is in cardboard boxes and the capacity of each pallet depends on the container. It also rents units for the domestic market when necessary. Regarding the financial statements of the company, the reported utility is less than the annual bank yield. It manages large inventories in its factories due to the variability of demand, but the product has an expiration date of three months, it has been reported. 4% loss due to expiration. On the other hand, its information system is decentralized, which means that each plant in Mexico processes its own database with independent reports and is independent from Spain, that is, they are managed as suppliers for other countries and not as subsidiaries. Its main international client is Walmart, which, due to the lack of Ybarra's presence on its shelves, has at least 10 more suppliers of olive oil that it is promoting in addition to its own brand. The same has happened with restaurant chains that have opted for other brands. The company wants to expand into international markets because the product has international awards, but recognizes that it has many problems to solve in its supply chain. They have hired him along with his work team to propose different strategies to solve the problem. Consider all the variables of the case so that the strategies solve the current problem of the company and help it fulfill its mission Please fill in the following boxes, in case of not applying please just put NOT APPLICABLE and the justification
SOURCING
Problem(s) detected, Justification, Strategy, Expected results PRODUCTION Problem(s) detected, Justification, Strategy, Expected results
DISTRIBUTION Problem(s) detected, Justification, Strategy, Expected results
INTERNAL AND EXTERNAL LOGISTICS
Problem(s) detected, Justification, Strategy, Expected results
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started