Logistics And Operation Management

Portfolio Exercise 1 (Weeks 2 - 4) Exercise Brief: Mini-Report #1 (1200 words) Tasks: 1. For the commercial organization assigned to you by the module instructor, describe its industry sector, organizational structure, range of products provided, as well as the typical demographic profiles of its clients. Drawing on this information, sketch out a general logistics and distribution strategy for the organization that you believe will be an improvement on what currently obtains. 2. Product life-cycle curves are important in developing suitable logistics and physical distribution strategies. An understanding of product life cycles enables planning for each product replacement in a timely manner, whilst minimising the possibilities of loss of market share to competing products. Critically analyze the impact of the product life cycle on the development of logistics and distribution strategy for one or more products from the assigned organization. THE C

Running head: LOGISTICS AND OPERATION MANAGEMENT
LOGISTICS AND OPERATION MANAGEMENT
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1LOGISTICS AND OPERATION MANAGEMENT
Table of Contents
Introduction..........................................................................................................................2
Description of Industry Sector.........................................................................................2
Organization Structure.....................................................................................................3
Range of Product.............................................................................................................3
Demographic Profile of Client.........................................................................................4
Logistic and Distribution Strategy...................................................................................5
Product Life Cycle Curve................................................................................................5
Impact of product life-cycle Curve..................................................................................7
Conclusion...........................................................................................................................8
References............................................................................................................................9

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Introduction
Almarai Co, stand out to be as one of the largest organization in Saudi Arabia in terms of
market value. The organization aims to operate dairy farms and processed food along with the
marketing of dairy products and fruits. The name of the organization “Almarai” comes from the
Arabic word named “green pasture”. In the year 2009, the organization started in bold look for
consolidating its presence in local as well as the oversea market (Alotaibi 2019). In the month of
February, the organization comes up with an announcement to have a joint venture with giant
brand like Pepsi Co for investing in both dairy and juice products. After this joint venture, the
organization is planning to expand its business in some of the areas like Middle East, South East
Asia and Africa.
In the coming pages of report, an idea has been provided with respect to industry sector
of Almarai Co. The next part deals with structure of organization, product ranges and
demographic profile of the client.
Description of Industry Sector
In the Middle East, ALMARAI stand out to be a leading manufacturer in food and
beverage distributor. It stand out to be leader in the integrated dairy organization on global
platform. In the year 1977, consumer on global platform has understand to recognize the brand
of Almarai in terms of quality (Singh and Hagahmoodi 2017). On a daily basis, the organization
focus on the quality which an individual can easily trust. The organization starts with decision-
making by the board of directors and senior management. It is completely extended to farming,
distribution and manufacturing operation. It stands out to be an integral part of the development
of the professional skill of employees.

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Organization Structure
The organization comes up with a range of food products that are offered to customer
under just a single roof. The firm tends to have an organization structure so that roles and
responsibilities can be delegated among most of the professionals (Knowles et al. 2016).
Hierarchical organization structure is used in ALMARAI Organization so that various routine
task can be carried out and all sort of records can be maintained. In the below figure, the
organizational structure clearly highlights work and duties which are assigned from the upper to
lower level(Fodol and Aziz 2019). Employees can be motivated to do well and provide their best
when opportunities for promotion are there in the organization.
Fig 1: Organizational Structure of ALMARAI Co
(Source: Eltahir et al. 2018)
Range of Product
ALMARAI Corporation aims to provide a range of product which is inclusive of fresh
milk, laban, milk flavor, milkshakes, yoghurts, natural, processed cheese, butter, ghee, and

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evaporated milk (Eltahir et al. 2019). The fresh dairy sector of this organization highlights more
than 40% of the organization sales. On a global platform, Almarai stands out to be as one of the
largest organization and its fight to improve the current position in this domain (Szymczyk and
Kadłubek 2019). The group is inclusive of fresh laban, milk of different delicious product and
advanced free milk. Almarai comprises of fresh liquid products that are found in most of the
GCC countries.
Fig 2: Different Products of ALMARAI Co
(Source: Crawford 2017)
Demographic Profile of Client
Saudi Arabia and some of its neighboring nations like Kuwait, Bahrain, and United Arab
Emirates and Oman comprise of Gulf cooperation council (GCC). It is expected that the total
population stand out to be around 34 million which is large and growing (Deng 2016). These
countries have a large population of young people. The demographic profile is considered as one
of the plus points in the dairy industry as these products are known to be important for growing
families (Fan and Feng 2017). Considering the present trend of the GCC population with an
annual increase of 4 per cent. It is expected that this will reach to 50 million in the upcoming

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years. Almarai stand out to be as only fresh dairy products which operate in more than six GCC
countries. The organization comes up with fresh dairy organization with a range of products.
Logistic and Distribution Strategy
ALMARAI Corporation has commissioned with Swisslog for complete automation of
distributing logistics. It will be done for its operation in Al kharj, south Riyadh. The value of
giving order stand to be around 43 million euros. It is expected that Swisslog will completely
automate its products in the five stages (Ng et al. 2018). Swisslog will handle both innovative
warehouse logistics and on-site system operations. ALMARAI Corporation is considered to be
the largest vertical integrated dairy organization, a specialist in bakery products, fruit juice and
nutrition to infants.
This particular project is part of the strategic orientation of logistics operation. The firm
is coming up with a plan for ensuring smooth operation of the warehouse. It is the duty of
technicians to maintain and completely support the site of the system. This is the second
organization which has gained customer in the last few years (Ali et al. 2019). As a result of the
innovative solution and strong network in this domain which has helped in providing tailored
made solution. It has been done for meeting the need of the growing customer. Middle East
region stand out to be vital for market growth of dairy products.
Product Life Cycle Curve
Product life cycle stand out to be an indispensable tool for different product planners and
marketers. Product in its life cycle goes through a list of skill, tools, discipline and different
processes (Alotaibi 2019). It mainly has five steps in product life cycle like Introduction stage,
growth stage, maturity stage, decline stage and abandonment stage.

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Introduction Stage: In this stage, the product is introduced in the market. Its acceptance
from the current customer is taken.
Growth stage: With the increase in product acceptance, the overall demand for the
product sale increases rapidly.
Maturity Stage: In this stage, both the price and profit fall to a large extent as a result of
huge competitive pressure.
Decline Stage: Both market peaks and level off is seen at the time of saturation. An only
new customer can buy a product and repeat of order completely disappear.
Abandonment Stage: The firm completely removes the product so that it can make better
use of the available resources.
Fig 3: Product Life Cycle Stages
Source: (Ali et al. 2019)

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Impact of product life-cycle Curve
Life cycle of products is considered to be a major aspect in the domain of logistics and its
distribution Strategy. The product life cycle is inclusive of different activities used in the
conception, production and lastly selling of product (Ng et al. 2018). The design need of a
product, another kind of activities are required for understanding the product and time needed for
a complete understanding of the product. It helps in having a complete understanding of different
strategies needed in logistics and its distribution. In the last few years, logistics and its
distribution strategy have become a vital aspect for the success of firm (Fan and Feng 2017). It is
mainly seen as a result of changing trends of customer and an increase in competition.
Product lifecycle logistics stand out to be game-changer approach in treating supply chain
as a whole. It will ultimately lower the overall cost of supply chain cost of milk products by a
certain value that is 10-20%. Product lifecycle logistics aims in encouraging creative thinking in
all possible ways (Szymczyk and Kadłubek 2019). This is about a combination of supply chain
function for reducing the touch points of milk products. Product lifecycle logistics aims in
promoting along with the integration of supply chain functions. It is required for analyzing the
number of times a milk product is touched and moved in its journey. Improper coordination in
between purchasing and logistic ultimately results in inbound logistics (Singh and Hagahmoodi
2017). The meter of product lifecycle cost begins prior to product making and delivery of
component to factory.
Lifecycle logistics of milk products standout be a scalable strategy which can easily
realize the benefits of cost-saving (Knowles et al. 2016). There is a need for identification of
present segment and complementary function and how it can be integrated into the product.

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Conclusion
The above pages help us in concluding that this report is all about ALMARAI Co. The
organization is involved in the business of food and beverages. Some of the major business
activities require the involvement of both manufacturing, dairy trading and juice products. All
the products of the bakery are manufactured under the brand of Lusine while the poultry
products are manufactured under the brand name of Alyoum. The organization is also involved
in making an investment in both Zain and infant Nutrition. The headquarter is based in Riyadh,
Saudi Arabia. The vision of the founder is all about transforming the dairy farming industry of
Saudi Arabia in order to meet the increasing demand of the local market. The report deals with
effect of product life-cycle curve on developing logistics and physical distribution strategies.

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References
Ali, M.M., Rai, R., Otte, J.N. and Smith, B., 2019. A product life cycle ontology for additive
manufacturing. Computers in Industry, 105, pp.191-203.
Alotaibi, H., 2019. Organisational Structure and the Strategic Planning Process in Almarai
Company of Saudi Arabia.
Crawford, R., 2017. Marketing channels and logistics: A case study of Pepsi International. Ivory
Resarch. com.
Deng, C., 2016, April. A Preliminary Study on the Application of Logistics Distribution Strategy
in B2C E-commerce Enterprises. In 6th International Conference on Electronic, Mechanical,
Information and Management Society. Atlantis Press.
Eltahir, Y., Klabi, F., Sallam, O.A. and Osman, H.O., 2019. Interrelations in Saudi Stocks
Market. International Journal of Economics and Financial Issues, 9(3), p.91.
Eltahir, Y., Sallam, O.A., Osman, H.O. and Klabi, F., 2018. Does Volatility Generate Major &
Minor Stocks in Saudi Stocks Market. International journal of research in business studies and
management, 5(7).
Fan, W. and Feng, W., 2017, March. Research on Routing Optimization Problem of Cigarette
Logistics Vehicle with Time Window Based on Hybrid Genetic Algorithm. In 2017 7th
International Conference on Education, Management, Computer and Society (EMCS 2017).
Atlantis Press.

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Fodol, M.Z. and Aziz, H.B.A., 2019. THE IMPACT OF UNANTICIPATED POLITICAL
EVENTS ON STOCKS MARKET RETURNS: EMPIRICAL EVIDENCE FROM SAUDI
ARABIA. IJIBE (International Journal of Islamic Business Ethics), 4(2), pp.659-675.
Knowles, N.J., Bachanek‐Bankowska, K., Wadsworth, J., Mioulet, V., Valdazo‐Gonzalez, B.,
Eldaghayes, I.M., Dayhum, A.S., Kammon, A.M., Sharif, M.A., Waight, S. and Shamia, A.M.,
2016. Outbreaks of foot‐and‐mouth disease in Libya and Saudi Arabia during 2013 due to an
exotic O/ME‐SA/Ind‐2001 lineage virus. Transboundary and Emerging Diseases, 63(5),
pp.e431-e435.
Ng, E.H., Nepal, B., Schott, E. and Keathley, H., 2018. MANUFACTURABILITY AND THE
PRODUCT DESIGN: CASE STUDY EXPLORATION OF MANUFACTURABILITY
ASSESSMENTS ACROSS A PRODUCT LIFE CYCLE.
Singh, A. and Hagahmoodi, S.O., 2017. Performance Measurement of Almarai Products and
Customer Satisfaction. International Journal of Management Science, 4(1), pp.1-12.
Szymczyk, K. and Kadłubek, M., 2019. Challenges in general cargo distribution strategy in
urban logistics-comparative analysis of the biggest logistics operators in EU. Transportation
Research Procedia, 39, pp.525-533.