Operations Plan
The operational plan for Full of Life beverages will describe the structure of the organization and how each process will be carried out with regards to the strategies presented in the business plan for transforming a small family business into a large-scale beverage manufacturer. First, it is important to discuss the location of the production plant. Since the company has started operating as a family business, its location will include an office in the local area and the production plant located on the outskirts of the town to account for the effects of the manufacturing on the environment.
The advantages of the office location include the relative proximity to business offices of other companies; however, a significant disadvantage is a fact that the production plant will be located quite far from the central office of Full of Life. It is expected that the central office will be of approximately 100 square meters; the production plant will begin as a three-level building, which will be divided into production sectors for increased convenience.
The competitive advantage of the company will be associated with the increased attention to customer relationships and smart product development targeted at seasonality and variation regarding business-level strategies as well as the implementation of JIT inventory, efficient manufacturing and distribution regarding the functional level.
Supply and Inventory Management
The key aspect of the supply and inventory management will be associated with the control of fruit and vegetables provided by local farmers. It is noteworthy that the supply of products will vary depending on seasonality, so the Full of Life management should focus on the process of preliminary planning for future seasons to make sure that the production plant is stocked on the needed ingredients to produce beverages without any disruptions.
Just-in-time inventory is the most appropriate strategy for Full of Life since fruit and vegetables tend to spoil fast; the company’s inventory managers should keep in mind the production’s demand for certain ingredients and make sure to provide plants with the appropriate quantities. In such a scenario, immaculate relationships with suppliers are high on the agenda for Full of Life beverages.
As a green brand, the company will invest in collaborating with local farmers to buy seasonal vegetables and fruit for beverages’ production. When the order is received, it is expected that the Full of Life manufacturing plant will produce 100 items of beverages within twenty-four hours in the case when the needed supply of ingredients is available. If the supply is not enough, it is estimated that local farmers will supply fruit and vegetables within two business days, thus extending the turnaround time.
Production and Distribution
The production process of Full of Life beverages will consist of six key stages: the preparation of the simple juice mix, preparation of the final juice and vitamin additives (e.g., chia seeds, goji berries, spirulina, etc.) solution, preparation of the final beverage (final solution combined with water), bottle sanitation process, bottling of beverages, counting and sorting drinks into crates. The process of distribution will consist of dividing the stock of the freshly produced drinks into the most appropriate sales channels such as online sales, local grocery stores, specialized shops, and local markets.
Research and Development
As to new product development, Full of Life is currently working on releasing a selection of new beverage flavors for the upcoming season; moreover, the company is planning to start exploring the market of healthy energy bars to sell them in conjunction with beverages. Research and development activities in Full of Life are aimed at improving the existing product lines with the help of customer feedback and exploring new ideas for production through studying market demands and supply targeted at their fulfillment (“Research and development,” n.d.).
Reaching out to customers is the most valuable tool for the company; through getting feedback on what should be done and how to do it better, Full of Life will develop a deeper understanding of customers’ needs and will develop new products in alignment with these requirements.
Technology Plan
The critical technology needs of Full of Life can be divided into several distinct categories: software and hardware (including IT), telecommunication, production and distribution, and personnel. It is important to mention that meeting the company’s technology needs will be accompanied by the efforts to use green technologies that can significantly increase the efficiency of the manufacturing and distribution processes.
As a “green” brand, Full of Life is expected to focus its attention on those industry developments that will significantly reduce the adverse impact of the production process on the environment. Such developments and innovations include the installment of solar panels, recycling technologies, innovations for the reduction of CO2 emissions, electric vehicles for the distribution of products. Other technology needs of Full of Life are the following:
- Software needs (on-premise and “in the cloud”): accounting software, e-mail, documentation software, Customer Relationship Management software, spreadsheets (Smith, 2010).
- Hardware needs: desktop computers of laptops, external hard drives, network server solutions, a wireless router, and a laser-jet printer (Serbu, 2013).
- Telecommunication needs: mobile access, the Internet, live chat capabilities, business email (Renee, n.d.).
- Personnel needs: technologies for the management team and technologies for the manufacturing team. Documentation, accounting, CRM, and similar types of software will be used for inventory management, taking and tracking orders, customer service, and marketing. Manufacturing technologies will be used by the production team and quality control operators who will communicate with the management via telecommunication technologies. The stage of quality control in the manufacturing plant will ensure that each bottle aligns with the high standards of quality set by the company.
When it comes to the use of technologies in a beverage manufacturing company, extra attention should be paid to the equipment used in the process of production. The equipment used in the production of Full of Life beverages includes juice pressers, pasteurizers, cookers, conveyors, boilers, filters, freezers, mixers, packaging equipment, pollution control equipment, etc. It is expected that as the company grows, it will expand its product line and thus will need to get additional equipment for the manufacturing plants to cater to the growing demands of the market as well as the possibility of developing a completely new product (e.g., an organic energy bar).
Due to the lower budget, the manufacturing plant can include used equipment to cut costs; however, with the increased profit, Full of Life is expected to buy new and sustainable equipment to reduce the impact of the production on the environment. Also, the company is planning to invest in recycling technologies to minimize production waste. In terms of packaging, it will be outsourced to a local manufacturer that produces beverage bottles and other types of packaging made from recycled materials.
Business Organization: Employees and the Management Team
In the beginning, it is expected that Full of Life will not have an extensive management team due to low budget capabilities. The team will consist of the general manager (the company’s owner), inventory manager, sales manager, and marketing manager. The largest part of the company’s employees will be involved in the production of beverages; employees will weigh, measure, and mix ingredients, add vitamin additives to the beverage, operate heating, chilling, pasteurizing, and freezing of ingredients, monitor product quality, operate machines to peel, core, slice, and pit fruit and vegetables, clean equipment, regulate conveyor speed, move products from production lines into areas of storage and shipping, as well as packaging and bottling products.
The manufacturing plant will employ local workers either with or without the experience of working in a similar area of expertise. The company will invest in offering jobs to locals to align with the established Corporate Responsibility Objectives.
Since Full of Life has not developed as a fully formed team, the hierarchy in the company will not be as strictly defined as it could have been. The top management (the general manager, the role of which will be fulfilled by the company’s owner) will be responsible for guiding the middle management (inventory, sales, and marketing managers).
The rationale for the development of such a management hierarchy refers to the fact that Full of Life does not have enough resources to hire a complete set of managers with particular specializations. In the beginning, the general manager will be responsible for fulfilling multiple tasks such as negotiations with suppliers or collaborations with other organizations. Inventory, sales, and marketing managers will be directly tied to the process of production to make sure that customers receive a high-quality product to fit their demands.
References
Renee, M. (n.d.). Cost-effective telecommunications. Web.
Research and development. (n.d.). Web.
Serbu, M. (2013). 4 essential hardware products for starting your business. Web.
Smith, N. (2010). A guide to your business’ software needs. Web.