Strategy and Techniques for Yariba Cream to Enter into Foreign Market

INTERNATIONAL LOGISTICS

Executive Summary
Yariba Cream which deals in ice cream made by organic food is planning to expand their
business in MENA region and the first country which is selected for expansion is Egypt.
Different types of strategies and techniques is used by company for expanding as proper research
is required before investing large amount of money. This report will shows the different types of
modes which could be opt by Yariba Cream to enter into foreign market by considering factors
like transportation, logistics, supply chain management etc. Each and every factor has positive as
well as negative aspects which must be considered by evaluating strategies. Importance of
warehousing and facility location is discussed by taking circumstances of Yariba Cream.

Contents
Executive Summary.........................................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Procurement............................................................................................................................4
Demand Management and Order management......................................................................5
Inventory Management...........................................................................................................6
Facility Location.....................................................................................................................7
Warehousing Management.....................................................................................................7
Packaging and Materials Handling.........................................................................................8
Transportation.........................................................................................................................8
International Logistics............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
International logistics refers to planned activities which includes flow of goods and
services to other country with the aim of acquiring customer share in that market (Murphy and
Knemeyer, 2018). Main aim of this approach is to enhance profitability and customer share in
the competitive market by fulfilling customers’ needs and demands. For this report, YARIBA-
CREAM is taken for consideration which provides different varieties of ice cream like Aguaje,
Capilum and Lucuma. Demand management and how it affects procurement and inventory
management will be discussed. Besides this, strategic choices like facility selection, warehouse
management or packaging will be scrutinise. At last, role play by transportation in international
logistics will be described by taking functional example of Yariba Cream.
MAIN BODY
Procurement
Krajlic procurement matrix is also known as purchasing portfolio matrix and used by
companies to prioritise their buying activities according to the result involved in it and its profit
or loss impact on business operations (Wang, Yang and Yin, 2015) . There are two factors on
which matrix are based on i.e., profit impact or financial situations and supply risk.
Strategic Items: Strategic items are those which have high supply risk but on the same
side, profit produced from selling them is also high in nature. Besides this, product should be
unique in the market and must provide high value to the customers as then only they would be
attracted towards it (Hatefi and et. al., 2015). For instance, Aguaje flavoured sorbets comes
under this category as there is 60% demand of it and is unique to the public which fulfils above
mentioned requirements. Due to its uniqueness in the market, Yariba Cream must try to become
the only supplier in the market as then only it would be possible for them to earn high
profitability and maintaining long term partnership with the supplier and consumer (Pang, 2015).
Bottleneck components: Those item which has high supply risk but contributes low profit
to the company is known as bottleneck components. As mentioned above, Lucuma ice cream is
unique in the market but has only 10% of sales portion which reflects low contribution of profit
to the company. Due to uniqueness and low availability of product, pricing power is kept by
company or supplier only and market demand fluctuates on the basis of it only.