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Alpine Beverages Company’s Third-Party Logistics Research Paper

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Updated: May 12th, 2021

Introduction

Alpine Beverages is a multinational company with headquarters in Switzerland. It produces almost all possible soft drinks from carbonated to fresh milk ones. I will imagine that I am the Logistics Manager in the Dubai office. The purpose of this work is to decide which logistics service to choose to undertake warehousing and delivery. In the paper, several logistics companies will be discussed according to the conditions given in the task. Storage and delivery requirements will be taken into consideration. Then, it will be decided what online data should be available from the logistics service for Alpine Beverage to manage the process correctly. Finally, the appropriate third-party logistics service company will be selected.

Conditions

Firstly, the Dubai operation of Alpine Beverages needs 3400 pallet storage places. 3000 of them are required for hermetic cans, bottles, and cartons with long-life beverages that do not need cooling. 400 pallet places need cooling as fresh fruit juice, and flavored milk drinks are going to be kept in them. That is why the company needs an appropriate third-party cooperator that will be able to provide all the necessary pallet spaces.

Secondly, a company is needed that can deliver beverages to three regions of Saudi Arabia, namely Dammam, Riyadh, and Jeddah. Moreover, Alpine Beverages have contracts with sellers in Muscat, Oman, and, naturally, the Emirates, where the office is situated. Thus, the transporting company should be the one operating in the whole region of the Middle East. Deliveries are supposed to be on a daily basis.

Moreover, it is necessary to take into consideration that Alpine Beverages may acquire conditions that will enable it to expand the distribution network. It would not be very convenient to change the delivering and storing business partner because of that. That is why the third-party logistics service should be ready to satisfy the growing demands of Alpine Beverages. The company expects to increase its sales in the region by 50 percent in the next five years; that is why the logistics company needs to correspond to the expectations and, perhaps, also have clear plans for growing and development.

Thirdly, for the sake of safety, drinks are to be transported on wooden pallets. It means that the third-party company should have enough pallets that correspond to the actual safety norms. It should be expected that the losses while transportation will be close to zero. Of course, the conditions that the third-party company provides for storing and transportation should be thoroughly inspected by the logistics manager himself or by the logistics experts assigned by Alpine Beverages.

Finally, it is natural that Alpine Beverages would like to require information online at any time of day and night. It is necessary to establish better control of where and how the products move, how many of them have been delivered according to the plan, how many of them are in store, and the percentage of losses. This information may help analyze the effectiveness of the cooperation with the logistics company and recommend measures for improvement.

In the next sections of the paper, several logistics companies will be discussed according to the above-mentioned criteria: the sufficient number of pallets for storage (3000 with ambient temperature and 400 with cooling); the geographical scope (with perspectives for growth); wooden pallets; the data that may be provided by the service online; other useful information provided by the logistics companies’ websites. The services will be compared, and the most suitable one will be chosen for negotiations as a potential business partner in the field of logistics.

Storage Requirements

Al-Futtaim Logistics claims to be the leader of the logistics market in Dubai (Al-Futtaim Logistics 2015). As for warehousing, the company provides 100 000 square meters with ambient and controllable temperature conditions. If Alpine Beverages decides to choose this company, it will be necessary to find out how many square meters may be lent for storing long-life and fresh drinks. At least, according to the information on the website, the company is ready to satisfy the needs of both small and big businesses (Al-Futtaim Logistics 2015). Thus, in this respect, Al-Futtaim Logistics suits Alpine Beverages perfectly.

RAK Logistics is a company that presents itself as a global one (RAK Logistics 2017). As for warehousing, although it is not mentioned if they provide cooling or not, the authors of the website try to persuade the readers that the company is ready to satisfy absolutely any needs (RAK Logistics 2017). The requirements of Alpine Beverages are not that complex, that is why one may suppose that RAK Logistics will be able to cater to them.

International Logistics Services claims that it provides the whole complex of services in the field of logistics (International Logistics Services 2016). On the website, it is mentioned that they organize transportation by road, sea, and air. However, nothing is said about warehousing. That is the reason why the company does not suit Alpine Beverages’ storage demands at all. Thus, the possibility of business cooperation becomes unlikely before the logistics manager knows for sure if the company provides warehousing services.

The next company under consideration is AZ Logistic. Its headquarters are in Dubai, while the whole company operates in 48 countries (AZ Logistic 2017). It is necessary to find out about Saudi Arabia and Oman. On the website, they have a special section that presents their warehousing services. The company states that it is ready to meet any needs (AZ Logistic 2017). They have climate-control zones in their warehouses, that is why Alpine Beverages’ fresh drinks will be safe. In this case, AZ Logistic may be viewed as a future business partner.

For now, Global Shipping & Logistics seems to be the most suitable company for warehousing the drinks. Their stores contain cool and cold blocks (Global Shipping & Logistics 2018). Moreover, the system is managed and controlled every day around the clock. The warehouses are equipped with CCTV cameras that may prevent theft. The company claims that it is able to cater to any specific needs (Global Shipping & Logistics 2018). To add, the option of repacking is included in the list of services. Although it is still necessary to require details, on the whole, such a business partner makes a good impression.

The last company to discuss is Jenae Logistics. It is stated on their web resource that one of their fundamental operation principles is the combination of warehousing and distribution (Jenae Logistics 2014). For Alpine Beverages, it is quite important as viewing the two aspects of cooperation in a complex will certainly help reach a mutual understanding. However, at the same time, the site does not give any information about the storage conditions. One cannot learn from the given data if there are or are not coolers for fresh drinks. That is why for now, this company is under question and only partly suits the needs of the drink producer before more information about warehousing can be obtained.

Delivery Requirements

Further on, as for transportation services, Al-Futtaim Logistics states that it has the highest quality lorries to deliver any cargo (Al-Futtaim Logistics 2015). Moreover, one of the advantages of the company is that it delivers goods on the whole territory of the Emirates. This suits Alpine Beverages, but on the website, no other countries are mentioned (Al-Futtaim Logistics 2015). That is why there is a need to find out if they operate on the territories of Oman and Saudi Arabia.

Before it is known, the company only partly suits this criterion. Further on, there is no information about wooden pallets. However, by analyzing the information about the modern equipment the company uses to transport goods all around the Emirates, one may guess that Al-Futtaim Logistics does have this simple device or may purchase pallets if the agreement with Alpine Beverages is reached.

RAK Logistics provides not only lorries but also planes (RAK Logisiics 2017). That is rather convenient because this makes the logistics manager of Alpine Beverages more sure that the drinks will be delivered to Saudi Arabia and Oman in time and daily. It is also possible that drink distribution may involve transportation by sea, which is also available (RAK Logisiics 2017). In some cases, it may be needed because it will be cheaper, and in other ones, one means of transport may be used instead of another to avoid delays when they are predictable. That is why in this aspect, RAK Logistics is preferable to Alpine Beverages.

International Logistics Services works all around the world (International Logistics Services 2016). They claim that the Middle East is the main direction in which they operate. Even if they do not have an office and a warehouse in Oman or Saudi Arabia, it is possible that their broad network of business partners will help. However, this may bring about a number of difficulties. For example, using the services of a partner may cause an increase in the cost of shipping and warehousing.

Further on, they emphasize that their business policies are flexible (International Logistics Services 2016). Because of this, there is a reason to hope that they are ready to use wooden pallets if the cooperation with Alpine Beverages is profitable for them. Thus, the company may partly suit the needs of the drink-producing enterprise. It is possible to note that International Logistics Services promise that they are able to deliver cargoes within the period of 24 hours (International Logistics Services 2016). It is important especially for fresh drinks delivery, which may serve as a valuable bonus for cooperation and gaining profit.

As it has already been mentioned, AZ Logistic does not give any information about distribution services in Oman or Saudi Arabia. They state that the main sphere of their interests is the Emirates (AZ Logistic 2017). This aspect is to be cleared up. To continue, the company proposes flexible conditions for transportation. On the website, it is stated that they are ready to make necessary changes in their operation to meet the needs and interests of the customer (AZ Logistic 2017). It means that wooden pallets are quite possible as it is not a difficult or costly thing to do to buy them.

Global Shipping & Logistics’ head office and main warehouses are located in Dubai (Global Shipping & Logistics 2018). That is why it would be easier to reach an agreement with the company for them to distribute drinks not only around the Emirates but also in Oman and Saudi Arabia. It is quite possible that they will not have to use special storage on the territories of the latter two. If they have ones at their disposal, it is even more suitable, but the goods may be sent to the points of the distribution network by air or by sea from Dubai. This is also a good option as planes and ships (and in most cases, even trucks) are capable enough to deliver the cargo within one day. That is why in this respect, cooperation conditions are worth negotiating.

Finally, Jenae Logistics assures that they will do everything in their power to satisfy the interests of the customer (Jenae Logistics 2014). They state that their operation is directed at providing services to distribution networks. This is suitable for Alpine Beverages as a network for selling long-life, and fresh drinks is what the company wants to establish in the Middle East. As Alpine Beverages expects to increase its profit throughout the region by 50 percent within the period of five years, it is possible that Jenae Logistics will be the most valuable partner as usually, distribution networks (if they are successful) tend to develop and expand. Alpine Beverages is an enterprise that sees clear and well-grounded prospects of development. Thus, Jenae Logistics, with its flexible policy of supporting commercial networks, may be of great value and sufficient help.

Information Systems Requirements

Al-Futtaim Logistics offers a variety of services connected with tracking the products. On the one hand, there is the option of checking the movement route of the cargo (Al-Futtaim Logistics 2015). The system is called Web Track & Trace. On the other hand, there is a link to Stock Status Tracker that allows seeing whether the goods are in the warehouse or are being delivered. Both options are presented on the website, which is rather convenient. The logistics manager of Alpine Beverages may enter it all around the clock, simply insert a track-number and find out about the status of the goods. That is why in this aspect, Al-Futtaim Logistics is acceptable as a commercial partner.

RAK Logistics assures its website’s readers that the company uses a warehouse management digital system that allows tracking every item that is kept in the store (RAK Logistics 2017). Thus, the Alpine Beverages logistics manager or any other staff member (if he or she has access) may see and analyze all the goods’ movements. The service allows you to do it anytime. This option is valuable for Alpine Beverages as it enables the company to establish full control of every item.

On the website of International Logistics Services, there is no information concerning online information systems. However, on the source, it is stated that the company is ready to establish a system of cooperation that will be suitable and profitable to the customer (International Logistics Services 2016). That is why even if they do not usually practice online tracking, such an option may be requested, discussed, and adopted. If Alpine Beverages negotiate such an opportunity, both companies may reach an agreement.

AZ Logistic also uses an electronic system of monitoring and management (AZ Logistic 2017). However, unfortunately, the website gives no information on how it works and if it is possible for the customer to track the goods. This is a moot point, and the information should be required by the manager as the company meets the interests of Alpine Beverages and is likely to be among the preferable ones.

Global Shipping & Logistics offers no such services as tracing or tracking. However, on the website, there is information that they may provide date coding, barcoding, and labeling (Global Shipping & Logistics 2018). It means that the company uses special software to control the goods in the warehouses and on the road. That is why it may be reasonable to negotiate using a system through which Alpine Beverages will be able to trace their drinks. There may be hope that the installation of and operating of the software will be cheap enough not to prevent the cooperation of the two companies.

As for Janae Logistics, their website gives an opportunity to track the shipping online right on the source (Jenae Logistics 2014). On the one hand, it is convenient as the logistics manager of Alpine Beverages may insert a track-number anytime he needs and get the actual information about the cargoes. However, contrary to the system supported by RAK Logistics, there is no opportunity to track every item. Perhaps, the company provides such an option, but one cannot get any information about it on the site. That is why in this aspect, Jenae Logistics is certainly not a preferred business partner.

Other Information

As for Al-Futtaim Logistics, it has been operating for about ninety years so far (Al-Futtaim Logistics 2015). If the company has got such a long-term experience, it may be viewed as trustworthy. Moreover, in 2012, the company was certified by DNV on ISO 9001-2008. It means that Al-Futtaim Logistics has high rates in consulting and risk management. It adds to the advantages of the enterprise sufficiently.

The history of RAK Logistics is not that rich. The company was founded only four years ago (RAK Logistics 2017). However, its establishment was the result of ten smaller companies merging into one. It is certainly a benefit as the enterprise combines in its daily operation and strategies the experience of the merged businesses. Moreover, their experience was gained in different countries, which is of special value to Alpine Beverages as it operates on an international scale.

International Logistics Services have been working for ten years, which is a considerable period of time but cannot stand in the same line with, for example, Al-Futtaim Logistics (International Logistics Services 2016). Unfortunately, there is no data on the resource of International Logistics Services about their experience and the length of operation. As for AZ Logistic, it was founded twenty years that may be estimated as an impressive experience (AZ Logistic 2017). Global Shipping & Logistics have been on the market since 1975, which is not as considerable as the period of the existence of Al-Futtaim Logistics but rather close to it. Finally, Jenae Logistics gives no information on this subject.

The Most Suitable Service Provider

According to the discussed and analyzed information, Alpine Beverages will most likely choose Al-Futtaim Logistics as it corresponds to all the conditions required by the drink-producing company. Firstly, it has sufficient warehouses and equipment for storing and is able to keep both long-life drinks at the ambient temperature and the ones that need cooling. Secondly, it has a sufficient number of lorries that may deliver the products around the region within 24 hours, although it is still unclear if the enterprise works only in the Emirates or in the neighboring countries also. Thirdly, it has a well-developed and convenient system of tracing.

In addition, Al-Futtaim Logistics has the longest experience among the companies under consideration. That is why it may be called the most suitable company, which may be helpful when Alpine Beverages’ volumes of a production increase by 50 percent in five years as planned.

Alpine Beverages might also choose RAK Logistics as it satisfies the same demands as the former one. The only aspect that causes doubts is its probable lack of experience and organization as the enterprise has existed only for four years now. As for the other companies, they are not as suitable as the two that have just been mentioned because they do not completely satisfy or do not give enough information about the conditions which are significant for Alpine Beverages. That is why the latter needs to reconsider both options, contact the two chosen logistics companies, and hold official negotiations with them to learn more about the prices and other factors that may influence cooperation and prospects.

Reference List

Al-Futtaim Logistics 2015. Web.

AZ Logistic 2017, Experts IT, Dubai. Web.

Global Shipping & Logistics 2018. Web.

International Logistics Services 2016, Pandora, Al Ain, UAE. Web.

Jenae Logistics 2014. Web.

RAK Logistics 2017. Web.

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IvyPanda. 2021. "Alpine Beverages Company's Third-Party Logistics." May 12, 2021. https://ivypanda.com/essays/alpine-beverages-companys-third-party-logistics/.

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