A Look at a Baters Food Group's Distribution Strategy in Meeting Essay

A Look at a Baters Food Group's Distribution Strategy in Meeting Delivery Performance - Essay Example Aside from discussing the significance of zero-inventory-ordering policies, staggering delivery, and just-in-time (JIT) concept in the establishment of lean production and distribution system, this report identified and discussed several factors that can trigger operational bottle-neck within a food manufacturing company. Furthermore, this report tackled the importance of using e-commerce in expanding the existing distribution system of Baxters. Table of Contents Abstract †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 Table of Contents †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 I. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦. 4 II. Common Factors that Directly and Indirectly Causes Distribution and Delivery Performance Problems on E-Commerce . 5 III. Importance of Establishing Lean Production and Distribution System on E-Commerce .............................................. 7 IV. Significance of Zero-Inventory-Ordering Policies, Staggering Delivery, and Just-In-Time (JIT) Concept in the Establishment of Lean Production and Distribution System ........... 10 V. Baxters Food Group’s Distribution Strategy in Meeting Delivery Performance †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 VI. ... 22 Appendix II – Significance of E-commerce on Baxters’ Distribution Strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 Introduction Formerly known as W.A. Baxters & Sons Limited, Baxters Food Group Limited was established back in 1868 as a local food manufacturing company in Scotland that specializes in the manufacturing of microwaveable gourmet soup bowls, chilli bowls, pickles and other food preservatives such as jams, marmalades, and jellies, chutneys and sauces (Baxters 2012a; Bloomberg Businessweek 2012). Today, the company manufactures its food products throughout Australia, Canada, and Poland (Baxters 2012b). Despite the global economic uncertainties during the past couple of years, the use of e-commerce enabled Baxters Food Group able to maintain the efficiency of its distribution and delivery performance. Even though the company’s monthly sales were down by 2% from ?125.8 million as com pared to ?129 million in 2010, Baxters Food Group reported approximately 6% increase in its pre-tax profits as of 2011 (McCulloch 2012). Delivery performance of Baxters is highly dependent on its ability to establish a lean production system. Since Baxters Food Group is a local food manufacturing company in Scotland, it is necessary to identify and discuss all factors that could create flaws on its production and distribution line. In relation to the distribution strategies used by Baxters Food Group, this report will focus on analyzing the factors that made the company able to maintain its efficiency despite the volatility in the demand for canned food products. Using the principles, theories, frameworks, and techniques of modern manufacturing strategies, this report will discuss how the Baxters was able to maintain its daily operational costs low