The American Coffee House is an open coffee house in Germany that dispenses coffee products to the customers in most of the cities. Our focuses are the supermarkets, malls and the office buildings because of the population/buyers.
Our competitor in the same business field is the Starbucks because they also offer direct retail sales of the same products to the same market. To succeed in our business, we need suppliers of good quality coffee beans and vending machines. The following is a four-step supply chain we intend to use and the strategies to be applied.
Preparation
This step involves selecting the appropriate supplier of the products. The coffee bean must be of good quality, ready for use because the customer will go to vending machine and take it. To determine this, the strategy to be taken is to select a supplier based on the reputation where he/she must have been supplying the same products for at least one year. This will be determined using the tenders that were awarded to the supplier.
This step also involves determining how many suppliers we need for the vending machines and the coffee beans. The significant thing is to know exactly how many machines we need and the coffee beans basing on the market we intend to reach. Another strategy is the capability of the supplier to supply all what we need. If one supplier can do it the better but if they cannot we select more than one.
This step considers the location of our potential suppliers because we need a supplier within Germany so that we do not have extra expenses to be incurred in importation. The strategy here is to advertise the open tender in Germany and then assess the applicants’ suitability for the tender.
The factors to be considered in selecting a supplier include the quality of the machines, user support and maintenance. The strategy behind this is the signing of agreement with the supplier before delivery, which states that maintenance of the machine is to be done by the supplier.
Shipment/logistic
This is the movement of the products from the supplier to the customer in this case to the American Coffee House. We need to move the vending machines and the coffee beans to the place where the items are being sold to the customer.
This step depends on whether we have the supplier from Germany or any other country outside Germany. It involves determining a reliable consistent shipping company. The strategy behind this is to select a reputable company that has been shipping products from one place to another. The information will be obtained from our employees and any other reliable source.
The destination of the supplied products is determined whether it is to our Headquarter or the selling point. Our technical personnel who must approve that the supplied product is in good condition will determine the place. They will be supplied to their offices before dispatching to the place of work. For coffee products, it will be determined by where the offices of quality assurance team are located.
Market Entry
This step involves making sure that the product is in use at its intended place. After shipment, the respective persons verify the products before being deployed to the place of work.
For the vending machines, they are taken to the locations where they are needed, that is, the malls, supermarkets and the offices. The strategy here is to use the company vehicle to transport the machine accompanied by one of our technical expert who will ensure that it is operational as it was shipped and verified.
Different types of coffee shipped are also verified for their quality and quantity. They are then taken to their respective market places where they are kept safely in a vending machine.
To adopt this, one of our food quality assurance staff will carry the products using the company vehicle, put them into the machine and provide guide to its use. At the selling point, there is a guide on how to use the vending machine and various coffee products in the vending machine with their respective prices.
Upkeep
This is the regular maintenance and checks on the vending machine and the coffee products in it to ensure that it is operating on a daily basis. There should be no time at which the services are terminated because of various reasons.
The strategy for the machines is that our technical experts will visit the selling points regularly to correct any malfunctions and for the restocking of the food supplies, our salespersons will advice the office when the products are almost finished to ensure that they are restocked before the machine is empty.
Due to the changes in tastes and preferences of our customers, there will be a suggestion box. The customer will drop the suggestions, complaints and compliments to be acted upon accordingly. Our quality assurance team will ensure that customers and employees adhere to all the health and safety measures by checking regularly.