High fuel cost in the transportation of its dairy products

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Reference no: EM132411304

1. Almarai, being one of the largest food company, it is likely to experience the high fuel cost in the transportation of its dairy products. When the cost of fuel rises, it increases the cost of transporting dairy foods. High fuel prices may also result in decreased demand because of the increased prices of dairy products. As such, the company may face challenges in hiring and retaining its drivers. With so many vehicles and the company itself, the company may also find itself struggling with some environmental issues such as emission reduction. The company may also suffer from technological strategy and implementation which comes with so many benefits but with a cost implication.

2. The supply chain design in the Almarai company plays a critical role since they enable the management to make use of various techniques that can yield maximum profits. It is also important to help in the identification of the solution with the least cost when meeting particular goals. Structures of minimum cost and maximum profit will not always be the same. There comes a time when they can vary. For instance, maximum profits and minimum costs differ because of locations, number of facilities, sizes, and product mix, which makes demand and supply allocation to be different.

3. It is important to take note of how and why customers reach out to a business enterprise. For instance, customers who reach out vial telephone calls, web chat, social media and other support and contacting services may be in need of assistance. As such, customer want a solution as well as to be acknowledged. Almarai adopts various dynamics in the pursuit of customer satisfaction. For instance, the company uses various marketing dynamics, flexibility in its delivery systems, the cost, and quality of its products, its dependability and the speed of delivery.

4. There is no business which does not face risks that threatens its success. As such, there is always a need to have a risk management plan to minimize the consequences associated with the occurrence of a risk. Risk management is put in place in order to identify what is likely to go wrong, evaluate the risks that requires attention and put in place strategies to handle the risks. The focus of Almarai is on its supply chain design solutions which is important when it comes to the prediction of the unseen market changes. As such, it helps to evaluate how the implementation of an alternative risk management strategy would affect how the company performs and responds to market changes before the company allocates its time and other resources for implementation.

5. Competitive advantage refers to a condition that makes a company superior and competes favorably. In order to attain this, a business may need to improving some aspects of the company to make it different from the competitors. Competitive advantage can be achieved by enhancing the quality of products sold by Almarai. This is done through the identification of target customers. Almarai can also reduce the prices of its products without compromising quality with aiming of increasing the customer base. Customers should also receive the company's in time before they decide to use products from other companies. There is also a need of Almarai being dependable and improve its internal working conditions to save money that would otherwise be spent on disruptions caused.

Reference

Miller,. R. (2012, December 25). How to Satisfy Customer Needs. https://www.business2community.com/customer-experience/how-to-satisfy-customer-needs-0359511

Turnbull, K. F., National Research Council (U.S.)., United States., & United States. (2008). U.S. and international approaches to performance measurement for transportation systems: Summary of a conference [held] September 9-12, 2007, Beckman Conference Center, Irvine, California.

Reference no: EM132411304

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