TeaBreak: Business Logistics, Supply Chain Negotiation & Risk Plan

This report outlines the negotiation strategies with suppliers and logistics companies for TeaBreak, focusing on cost analysis and effective communication. It identifies potential supply chain risks, including interruptions in raw materials, environmental factors, and procurement-related issues like inaccurate needs and vendor selection. A detailed mitigation plan is presented, addressing financial, informational, supplier, communication, operational, and contact risks with specific strategies and tools. The report also touches upon the legal aspects of importing and selling black tea, referencing traditional herbal registration. The analysis includes a summary of the UK tea market trends affected by COVID-19 and compares Assam, Darjeeling, and Ceylon black teas based on quality, demand, price, and sustainability, recommending Assam and Darjeeling as the best options for TeaBreak.

Managing Business Logistics &
Negotiations

MAIN BODY
Outlining negotiation, suppliers and logistic companies and analysing the risk involved in the whole
supply chain process along with designing a risk mitigation plan
Basis of negotiation with suppliers and logistic company which is TeaBreak can be done by researching the actual
costs of the products and services which are provided by the TeaBreak company. There are certain aspects as to how
the negotiation can be done with suppliers and logistics of the TeaBreak. The basis of negotiation with suppliers and
logistic companies is done by –
 Never compromising on the communication which is done by communicating the most important facts and
information about the logistics which are produced by the company.
 Discovering areas of mutual gain is the strong basis as to how effectively and in appropriate manner the
TeaBreak is taking concern of negotiating with the suppliers at large scale.

There is potential risk involved in the whole supply chain and procurement process which is of
TeaBreak company. The potential risks involved in the whole supply chain are mentioned as –
 There are certain causes by any interruptions which is observed in the flow of product in raw
materials, logistics which are within the supply chain.
 Due to environmental risks, the whole supply chain is affected. The environmental risks which are
associated with affecting the supply chain are – factors such as economic, climate, social,
governmental and including the threat of terrorism.

There are also certain risks known as procurement risks which the TeaBreak company may face. The
risks which are involved in the procurement process is described as –
 Inaccurate internal needs of the company which is the major cause as to how the procurement risks
are being analysed and evaluated at large scale within company.
 Selection of vendor may be poor which is affecting the overall process of how the procurement
process is undertaken at large scale.
 There may be error in the manual internal processing which affects the procurement process.
 Due to talent shortages, the stoppage in the procurement process is being identified and observed.

Mitigation Plan – The mitigation plan outlines planning process for identifying and analysing the
risks which are there in the business of TeaBreak at large scale. The mitigation plan helps in addressing
the aspects of how to remove the risks and other hazards which are affecting the business. By framing
of the mitigation plan the company will be able to address the positive aspects of growth and
development which helps in creating value for the company and knowing that how the risks are
removed which are hampering the growth and development of the business. Mitigation plan serves an
important purpose in mitigating the risks at large scale which are affecting the business

Identified Risk Probability Risk Mitigation Strategies and Tools
Financial Risk High The budget should be designed suitably by
using the worksheets and budget
implementation tools.
Information Medium Securing and saving it on computers and
backups in the laptops.
Multiple Suppliers High It should involve different pattens and
decisions in the planning of risk, quality of
supply should be enhanced, reach out to
diversified suppliers.
Communication Risk High Message should be delivered clearly and in
appropriate manner. Usage of digital tools
should be worked upon such as emails etc.
Other software should be developed for
interaction.
Operation Cost Risk Medium Prepare the research and then frame the
strategy so as to reduce the operational costs.
Contact Risk Low Enhancement of compliance with clauses
should be done with data encryption.

Along with this information, there are certain legalities which are involved in buying, importing and
shipping products of the nature such as Black Tea of TeaBreak.
 There is some major legal information which is involved in buying can be done by applying for
traditional herbal registration (THR) before marketing a product which is Tea of TeaBreak. Black
Tea is the tea which undergoes into procession of how effectively the Tea is brought in the market
to the customers at large scale. This legal aspect helps in knowing that how the Black Tea is made
available to the customers effectively and in appropriate manner.

Summary
With the help of market research current tea market trends in UK have been
affected by the Covid -19. The revenue of tea gardens was declined in 2020 by 14%. The
sales revenue of tea was also decreased at large scale. The tea market also is decreased in
the current market scenario. Global sourcing has been the sustainable procurement strategy
which has been taken. Three types of black teas have been compared on the basis of their
quality, demand, price, source ability, sustainability and packaging which are of Assam,
Darjeeling and Ceylon. Two best tea options for the TeaBreak are of Assam and Darjeeling.

REFERENCES
Books and journals
 Bambauer, D.E. and Woods, R., 2022. Tea and Donuts.
 Kaufmann, L., Rottenburger, J. and et.al., 2018. Bluffs, lies, and consequences: A reconceptualization
of bluffing in buyer–supplier negotiations. Journal of Supply Chain Management. 54(2). pp.49-70.
 Kumar, A., Gupta, A. and et.al., 2022. A bilevel game model for ascertaining competitive target prices
for a buyer in negotiation with multiple suppliers. RAIRO-Operations Research. 56(1). pp.293-330.
 Lambert, R., 2021. Land trafficking and the fertile spaces of legality. International Journal of Urban
and Regional Research. 45(1). pp.21-38.