Search

Get Your Assignments at the Best Prices NOW!!

Supply Chain Management - Need of International Trade & Business

663 Downloads1 I Published: 13 Nov ,2019

Introduction

Supply Chain refers to an overall systems of activities, people, information and organisation as well as resources which are included in moving an offering of a company from suppliers to customers (Christopher, 2016). On the other hand, negotiation refers to processes as well as actions to reach a certain agreement through avoidance of disputes or arguments. The following report is based on supply chain management of HF which is a beauty retail chains in the UK. It covers Market outlook, channels as well as trends in hair care products as well as procurement of hair care offering which is 30ml Argan oil from two countries. It also covers research of the best supplier, customs regulations as well as a detailed risk management plan.

ASSIGNMENT HELP AU We Aim At:
  • Offering the best assignment writing help
  • Delivering the orders as fast as possible
  • Providing maximum satisfaction at affordable rates
Call Now : +61 879 057 034

Task 1

Market Outlook

Beauty and Health industry in the UK is experiencing a rise due to better products, higher market demand and customer centric products. Within the industry, there are various factors such as customer awareness and enhancement in technologies have encouraged beauty organisation to develop products which are rich in skincare and environmental friendly (Monczka and et. al., 2015).

The United Kingdom is the sixth-largest market dealing in beauty as well as personal care products. Worth of this industry has been estimated more than £10bn in 2017. Moreover, in the same year, per capita expenditure on personal care and beauty products in the country was higher than £150, which is the fifth highest globally. This industry has four separate market categories, which are personal care and beauty products, each of which is commanding 20% share of the market, Salon and Spa services, commanding 30% share, barbershop and hairdressing services, commanding 30% share of this market within the country. Estimated expenditure of customers on salon, spa and beauty treatments have been more than £7.5bn in 2017 (What is the current state of the UK beauty market? Key findings,2018).

Illustration 1: Market value of beauty and personal care in the United Kingdom (UK) from 2015 to 2020 (in million euros)

(Source: Market value of beauty and personal care in the United Kingdom (UK) from 2015 to 2020 (in million euros), 2019)

As per the above statistics, the market value of this industry has been forecasted to be continuously rising in coming years. This market is female dominated and its customers are a wide variety of women ranging from age of 16 to 54. Such a high range of customer demographics are a strong reason for development of new trends within this industry.

As for haircare, the most important trend has been the rise in gluten-free and vegan products. The development of vegan products has seen a significant rise from 6% to 20% within a period of 2014-2018. in addition, gluten-free products have risen from 3% to 9% within a span of two years in 2016-18 (Microbiome Skincare, Clean Makeup And Gluten-Free Haircare: The Trends Driving Growth In The UK Beauty Market,2019).

Another trend witnessed by this market is the rise of digital technology which has shaped up the industry effectively. From development to its application, technological advancements like Artificial Intelligence and Augmented Reality have shaped this industry in a better and constructive manner (Beauty, Skincare and Cosmetics Retail Trends and Statistics,2019).

However, currently, due to Brexit vote, the industry is facing a slower and steadier growth. This, has resulted in increase in competition where beauty manufacturers and retailers are working effectively to produce commodities which are according to the market needs and preferable by customers. Thus, competition rate within this industry is quite high (UK: Competition increases as growth slows in the natural cosmetics market,2019).

The future holds even more advancements in the industry and with various health and beauty products organisations, the industry is would be seeing a substantial and effective growth in the coming years.

Our Mission is to Offer an Extraordinary Assignment help at Competitive Prices.

We believe in serving our customers with the most reliable assignment help

Task 2

Procurement of Argan Oil from two countries

The industry is experiencing effective growth and it is necessary for its players to appropriately develop effective business case weighing on developing a contributing supply chain management (Ghosh and Shah, 2015).

HF in order to consistently expand its business and enhance its scope of profitability must import hair care products for its customers. This would allow them to develop a wider market with an enhanced consumer base within the country.

Product:

One such product for HF is Argan Oil. It is a plant oil which is effectively produced through kernels of argan tree. It is a product which is recommended to be used for hair care.

Nature:

It is a bio organic product which is quite appropriate to be used for providing hair care

Benefits:

This product has various benefits. For instance, application of this oil helps in softening and hydrating hair. Moreover, due to presence of antioxidants in high quantity, along with Vitamin E and fatty acids, it assists in increasing elasticity of hair and effectively enhances quality of hair.

Size:

HF is planning to distribute this oil in containers having capacity of 30ml. This would be an adequate quantity to be sold to customers which effectively would help in developing an effective customer market.

Price:

It is very crucial for a company to effectively determine correct pricing as per the demand and supply. The firm is planning to import 15-20ft containers in the first year, which clearly implies that there is a consistent and effective demand of this product in the country. For its new product, the company would be applying psychological pricing techniques to effectively enhance the scope of its selling. With all these factors effectively analysed, the firm would be setting its price at £5.5 per bottle.

Packaging:

To develop its demand in the market, HF would be providing Argon Oil in polyethylene terephthalate containers which is used globally to store hair care oils effectively. Other than it being non-biodegradable, it has several benefits too. For instance, it is inexpensive, which would help the company in saving its cost. It is resistant of moisture as well as has high strength which would provide protection and safety to the oil (Everything you Need to Know About The World's Most Useful Plastic (PET and Polyester),2016).

Exporter locations:

Argan Oil is being exported and imported worldwide. However, it is an essential for HF to determine two locations which serves effectively in shipping this oil to the company in desired quantity. For this, the two nations through which HF would be importing Argan oil from are Morocco and US. The reason of choosing these locations is that both of these countries are recognised extractors and suppliers of Argon oil which is beneficial for HF in it business prospectives.

How Can We Help You?

Getting Top Grades is No Longer a Dream for You.

Task 3

Best Supplier, Port of Origin and Shipping Line

After determination of the product and quantity of Argan Oil which is essential to be imported, it is essential that HF performs extensive research for suppliers which would be shipping the product for acquisition by the company.

From various suppliers operating in the country, following is a supplier's file which seems utmost convenient and effective for HF:

Supplier's file in United States:

Brand Name

The company which is being chosen by the HF is Organic Infusions Inc. which is one of the most recognised suppliers in the US

Price

The firm quotes US$ 28.75 for 120 ml of Argan Oil (Organic Infusions: Argan Oil, 2019).

Quality

Organic Infusions Inc. have certified organic essential oils which is prime demand of HF.

Reason for Choosing the Firm

HF would be choosing this company as its supplier in the US as this organisation has been certified for carrying out effective processes which ensures ecological products, oils with no chemical compounds, no animal testing, etc. Moreover, this firm supplies pure products overseas which makes it a prime choice for HF.

Supplier's file in Morocco:

Brand Name

From Morocco, the firm would be choosing ZineGlob as its supplier of Argan Oil.

Price

This company charges US$ 22- US$ 23 per litre of Argan Oil (Argan Oil Wholesale Bulk,2019).

Quality

ZineGlob has certified quality of Argan Oil has various certifications which includes USDA Organic, ECOCERT Organic as well as FDA (ZineGlob: Certification,2019). This company produces top quality Argan Oil and Supplies it all over the world.

Reasons for Choosing the Firm

The biggest reason for HF to choose this company as its supplier in Morocco as it provides the firm with utmost transparency in information required about the product. In addition to this, with such authenticated certifications and effective image, the firm ensures top quality and utmost safety of the product.

After determination of suppliers for acquisition of Argan Oil, it is crucial and utmost imperative for HF to choose best logistics company to work with. For both the countries, i.e., the US and Morocco, this firm would be working with Fedex, which one of the biggest and prestigious logistics company globally. The reason for choosing this company as its services are recognised in almost all the world and it guarantees utmost product safety, convenient pricing and limited transit time for shipping the product.

For the US, the most convenient shipping route for HF would be Port of New York, United States to Port of Southampton, United Kingdom, having a distance of almost 3632 nautical miles (Port of Southampton , United Kingdom to Port of New York, United States,2019). However, as for Morocco, the company would be choosing a shipping line from Port of Casablanca, Morocco to Port of Southampton, United Kingdom having a distance of almost 1398 nautical miles (Port of Southampton , United Kingdom to Port of Casablanca, Morocco,2019). Both the shipping lines would be having Portugal as a connecting knot.

Task 4

Risk Management Plan

It is essential for each organisation to effectively develop a risk management plan which is essential for this firm to enhance the effectiveness of overall process of acquisition of Argan Oil and mitigate the risk factors completely (Hugos, 2018). Following is the Failure Mode and Effects Analysis table with potential risks and and corrective actions.

Item/Process

Failure Mode

Effect

SEV

Causes

OCC

Controls

DET

RPN

Buying Argan Oil

Wrong Interpretation of quantity by supplier

With such a flaw, HF would be charged with mismatched pricing and chances are that quantity either does not meet or exceeds than required

7

Causes of this risk would be transferring of misinformation from buyer or mishandling of information on the seller's side.

1

The order must be checked via written confirmation letter to ensure that required and delivered quantity are the same

3

21

Cargo Shipping

Damage to the product.

Chances are that complete loss of goods could occur which would have negative effect on HF for not meeting orders on time and unnecessarily add to cost.

9

This might happen due to natural calamities or due to accidental fire or theft.

2

To ensure safety, the company must use tracking methods available by Fedex to regularly check the status and must obtain insurance like fire and theft.

1

18

Delivery

Untimely acquisition of goods

Would have a bad effect on the Customer Relationship which is essential for the company to enhance its market with Argan Oil.

4

Might be natural causes for emergency stoppage or technological error in the cargo ship due to which it might turn faulty.

3

Firm must set up an effective time schedule with considerable time gap giving possibilities to delay.

5

60

The table above effectively shows the possibilities, likelihood, causes and how risks could be mitigated and managed within the company. These risks are ranked according to their preferences to be handled which might serve effectively for the firm to handle all the uncertainties associated with their acquisitions of Argan Oil.

Conclusion

Thus, it is concluded, that in order to effectively set up international trade and business, it is important for any business organisation to indulge into effective import of products and processes which would help it in appropriately carrying out its operations. Import would assist the organisation in acquiring products that would further aid in setting up a new product line of the company. It is however challenging to find appropriate suppliers and logistics to import the desired products, however, import is necessary to enhance the scope of profitability and international business. Lastly, supply chain must be determined to its utmost suitability and logistics exercise must be backed up with risk management plan to ensure smooth running of operations.

References

Books and Journals

  • Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
  • Ghosh, D. and Shah, J., 2015. Supply chain analysis under green sensitive consumer demand and cost sharing contract. International Journal of Production Economics. 164.pp.319-329.
  • Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
  • Monczka, R.M., and et. al., 2015. Purchasing and supply chain management. Cengage Learning.
Most Downloaded Samples
  • Comparative Analysis of Procter and Gamble

    Type: Assignment I

    Published: 12 Dec ,2019 I

    85 Downloads

    Introduction In the modern era, the competition among business in almost every industry has become so intense that it is no longer easy for firms to gain advantage over other market players. Furthermore businesses such as Procter and Gamble need to focus on their overall operations in order to...ReadMore

    Tags:
    View or Download
  • Managing Operations

    Type: Case Study I

    Published: 12 Dec ,2019 I

    204 Downloads

    Introduction The essay is based on a case study of Mayfield Private Hospital. The hospital is a privately run organization in Guildford. It operates with the Carlton Health Group. Carlton Health Group operates some sixty private hospitals in the United Kingdom. The particular group aims to offer...ReadMore

    Tags:
    View or Download
  • SWOT Analysis of Starbucks

    Type: Assignment I

    Published: 10 Dec ,2019 I

    204 Downloads

    Introduction The present study is based on SWOT analysis of Starbucks organization. It will help in gain an understanding towards the organization strategic planning process and its link with the business objectives. Starbucks has opened its business in 1971 where by opening first shop, it has...ReadMore

    Tags:
    View or Download
  • Efficiency of Trading Blocs And Its realistic Response to Globalisation

    Type: Assignment I

    Published: 09 Dec ,2019 I

    340 Downloads

    Introduction The following discussion is based on trading blocs,effectiveness of the approach in the world scenarioand its impact on globalised market transactions. Over last three decades, there has been a massive exchange of commercial and industrial trade among various countries from different...ReadMore

    Tags:
    View or Download
  • Managing Innovation in Business

    Type: Assignment I

    Published: 09 Dec ,2019 I

    374 Downloads

    Introduction Innovation can be defined as a new idea which is used by most of the companies in order to enhance sales and profits in upcoming period. It is not easy to manage whole process of innovation because it requires appropriate planning and strategies. When an organisation plan for a...ReadMore

    Tags:
    View or Download
Avail Professional Academic Writing Help

If the samples impressed you and you want to place an order with us just submit your queries with us and place your order.

Chat With Expert
Our Salient Features
  • Original Documents
  • Pocket Friendly Services
  • Money Back Guarantee
  • Rigorously Checked Documents
  • Delivery on Promised Date
  • Round the Clock Availability
View All Features
Our Experts
  • Hire HRM Assignment Writer

    Terry Oar My experience in Human Resource Management has all Hire Me

  • Jason Meredith-Chartered Accountants

    Jason Meredith I have ample experience in writing effective acade Hire Me

  • Ryan Gowan- Fashion and Textiles Writers

    Ryan Gowan The students normally face issues with the academi Hire Me

Don't Miss Our Special Offers
Free Inquiry