Supply Chain Project: Al-Ain Water - Case Study Example

Supply Chain Project: Al-Ain Water Background Al-Ain Water is a mineral water company. The organization was established as a significant initiative of the Late Sheikh Zayed bin Sultan Al Nahyan. The production facility was established in the year 1990 (Al Ain, 2013). This initiative was undertaken by Sheikh Saeed bin tandoon. This factory is located in Khattam Al Shiklah Road. This area is situated in Al Ain. This place is known as the Garden City of UAE. The organization is known as one of the popular and leading mineral bottled water brands within the competitive and potential market place of UAE. The organization has a strong tradition and heritage in the Emirate of Abu Dhabi. In terms of customer preference the brand is known as the most popular brands. This Al Ain water company is owned by the AGTHIA group. This group of companies is one of the leading listed companies in the Abu Dhabi securities and stock market. The organization has various product lines, such as Al Ain bottled water. Under this segment the organization used to sell pure natural water, flavoured water and added fluoride and calcium water. Under the fruit drink segment the organization used to sell Capri Sun. this product is very much popular among the children. This Capri Sun is used to manufacture in several leading countries including USA. Moreover, the organization has launched Al Ain 5 Gallon water. Lastly, WOW Vitamin water is known as effective healthy drinks that have been introduced by the organization. The organization has strong international presence. They used to export their product in four leading Middle East countries, such as, Bahrain, Oman, Kuwait and Qatar. Moreover, there Capri Sun is very much popular among the children in several international places. Several developed and developing countries including USA have the manufacturing facility of this specific product. In terms of logistic activities, Al Ain mineral water used to supply their bottled mineral water to several popular UAE based international airlines. Fly Emirates and Etihad are the leading clients of Al Ain water. The manufacturing and delivery process is quite adequate. Moreover, the organization always used to control the quality of products in order to gain customer loyalty. Inventory Al Ain mineral water organization has implemented advanced information communication technology in their inventory management. They have implemented PDA service in their warehouses in order to find and deliver the products in quick period of time. In terms of raw materials, they used to collect the water from the mountains with full of calcium and mineral. Effective R&D team, skilled employees and integrated manufacturing and distribution process has helped the organization to finish the products. Moreover, the organization used to collect fresh fruit in order to add fresh and healthy extracted juice in the mineral water bottles. The life cycle of their stock is not more than 6 weeks (Shauter & Theillio, 2006). In the fifth week of the inventory cycle the organization used to place reorder in order to utilize the time of distribution. The organization has implemented manufacturing and merchandise inventory. For an example, in terms of Al Ain mineral water organization, raw materials, work in progress and finished goods come under merchandise inventory segment. The organization has classified its inventory basis on several aspects of business operation. The major aim of quadrant model is to focus on the vendor relations, prioritization and inventory. The organization has managed its critical products, Such as Capri Sin based on the criticality aspect. Then the organization has developed effective and strong relationship with its vendors and target customers basis on the product uniqueness and organizational value and mission. They have reduced unnecessary transportation cost and stockade level. The organization has implemented push forward strategy for the critical items. EOQ model is an effective inventory management Model. The following is the figure of the model. Moreover, the study will provide the application of this model in the organization’s operation. Al Ain mineral water has effectively set up the order quantity objective. This strategy has reduced the marginal annual cost regarding the holding inventory and order placement of the various product lines of the organization. Looking into the above aspects, it can be state that, the organization is managing their inventory effectively. The business output and international popularity is one of the proving points of this statement. Transportation In terms of mode of transport, Al Ain mineral water organization used to utilize long headed trailers in order to cover a long distance distribution network within the UAE. The products of the organization are very much popular in several leading places of UAE, such as Sharjah, Abu Dhabi and Dubai. In order to cover short distribution network, the organization used to utilize forklift trucks. On the other hand, in terms of international logistics and supply chains, the organization used to utilize the cargo flights. These are effective mode of transport depending upon the nature and the attributes of the products. It is evidenced that, the long headed trucks used to carry huge number of products. Therefore, the company has able to deliver more number of products to their distributers and retailers within the channel or network comparing to the other competitors. In terms of forklift trucks, the organization can able to minimize their operational time and cost. They have chosen these types of modes of transport as these are fuel efficiency vehicles. Moreover, in terms of international logistics and supply chain, with the help of cargo flights, the organization can deliver the products within the shorter period of time. As these are the food products, therefore, it would be effective to use air mode rather than shipping mode of transportation. By implementing these transportation strategies, the organization has able to provide fresh mineral water to their end customers in global and domestic market (Dubreuil, 2005). Distribution management The leading organizations around the globe are trying to capitalize on the opportunities that have been created due to the globalization. Globalization and implementation of advanced technology has developed the global distribution system. The organization used to export their products in several Middle East countries. Moreover, in case of several products the organization has set up a manufacturing unit. For an example, the organization has set up a manufacturing plant in US for their popular product named Capri Sun. however, the organization implemented vertical integration in distribution management system. This type of distribution network is effectively cost and time effective. Moreover, through this distribution approach the organization can ale to cover vast area within the country in a limited period of time. The organization has implemented centralized manufacturing and distribution process. Therefore, it is feasible that, the organization used to depend on the centralized unit that is situated in Al Ain. In terms of Warehouses, the organization has set up their warehouses in the major parts of the country. This centralized warehouse and manufacturing unit used to control overall distribution and selling process of other Middle East countries like, Bahrain, Oman, and Kuwait. Taking into consideration, it can be state that, this centralized process in not time effective due to limited number of warehouses and manufacturing units. If the organization could have increase the number of manufacturing units and warehouses and decentralized their production and distribution process, then they should able to cut down several operating costs, such as export cost, logistic and supply chain cost. Therefore, it is feasible that, it is very much difficult to control a vast operation area through the centralized process. In terms of material handling technique, it can be state that, Al Ain mineral water has utilized long headed trailers in order to cover large distribution area within the country. In order to cover the shor6t distances, the organization used to utilize forklift trucks. Lastly, the organization uses several conveyors, such as wheel conveyors, roller conveyers and chain conveyors in order to supply the finished and processed products from the manufacturing unit to warehouses. The organization has also implemented the customer centric distribution strategy. Al Ain water has implemented effective technology in their domestic and international logistic system. Moreover, they have implement reward and incentive strategy for the retailers and distributors in order to satisfy the customers need. It is known to all that, the organization used to provide quality products. For an example, considering the domestic market, Al Ain mineral water organization used to shift their manufactured products to the warehouses. From the warehouses, the organization used to deliver their products to their distributers. Then the products go to the retailers from the distributers. Finally, all the end customers of UAE can get the products through several retail outlets. Moreover, the organization has started a feedback strategy in order to improve their quality of products and services (Mohamed, 2010). Customer Service and Demand Management The organization has implemented effective customer service strategy in their business operation. According to the organization value of Al Ain mineral water, it is their commitment that, they will provide their products to the end customers with huge determination and seer passion. Moreover, in terms of quality they have establishes a strong research and development tem in order to control the quality of products effectively. The organization has implemented effective distribution and logistics & supply chain strategy considering both international and domestic market. It is very much difficult to control the customer service factor regarding the FMCG product. The organization used to sell FMCG products with various product lines. The time effective distributio0n strategy, superior quality of products and effective product differentiation strategy with effective quality control has increased the core competency of Al Ain mineral water. Moreover, these strategies have effectively increased the brand value and brand image in their potential target market (Meunier, 2005). It is feasible that, the customers are ultimate drivers of any kind of business. If the organization fails to provide effective quality products and services, then the customers can switch to other brand. Taking the UAE as well as global market into consideration, it is known to all that, the bottle3d mineral water industry is very much competitive as well as potential. Therefore, it is necessary for the organization to monitor and control their business process in order to fulfil the customer’s need. Now-a-days, it is feasible that, people are tending to avoid traditional shopping strategy due to their daily busy work schedule. Therefore, they are seeking to get or purchase the products, through online shopping and home delivery. Looking into these factors and understanding or realizing this current trend of the customers, the organization has started to provide home delivery facility for all the product lines with a reasonable price range. Moreover, the organization has started to give incentives or rewards to their distributors or retailers in order to fulfil the customer’s satisfaction and comfort level. Lastly, it is evidenced that, the organization is going to implement online purchasing and order placing and product delivery strategy with the application of advanced technology in their website. References Al Ain. (2013). About Us. Retrieved From: . Dubreuil, A. (2005). Life Cycle Assessment of Metals. New Jersey: Pearson Education. Meunier, A. (2005). Clays. London: Routledge. Mohamed, A. (2010). Arid Land Hydrogeology. New York: Taylor & Francis. Sauter, D., & Theillio, D. (2006). Automation in Mining, Mineral and Metal Processing. Stamford: Cengage Learning. Read More