8-1 Aero Marine Logistics - Case Study Example

At the outset it seems that the second alternative is preferable. However, AML has expertise and capability to handle 20-foot containers. Their flatbed trailers can transport these containers. If they are to go for 40-foot containers it is not clear whether they have the capability of transporting such huge containers. Even if the transport can be arranged, it is not mentioned whether fitting larger flatbed trailers with refrigeration equipments will cost more than Rs 12 lakh. If it costs more, the second proposal may not remain more efficacious.

Further, there is always a chance, albeit smaller, of one container getting waylaid or damaged. In that case, with the second proposal, the loss will be higher. Another potential risk may be that the promised 150,000 kg mushrooms per month may not be feasible. Then it will be easier to decommission one smaller container rather than one larger container. 4. Here the supply chain considered is based on an agricultural production. Mushroom is not an ordinary agricultural product. Special expertise is required for mushroom farming.

Assuming the farming is done in Holland (since the port mentioned is Amsterdam), export of food item from there to India is considered. Farmers (Holland) Wholesellers/ Distributors (Holland) Food Processing Unit (Holland) Freshfoods (Holland) Shipping Company AML (India) Market (India) Consumers (India) 5. Costs are due to production (mushroom spawn, medium, labor), transport to distributors, storage, cost of freezing and storage in the Food Processing Units, power cost, containers and others as described in the case study, cost of setting up channels to market, cost of shelf display etc.

At every stage labor cost is there as well as management cost. Then, even though it is not mentioned, there will be insurance premiums and shipping costs to be taken care of. Since it