Whole Foods Market: Logistics and Business in Shanghai, China

This report provides an overview of Whole Foods Market's operations in Shanghai, China. It begins with an introduction to the company and its target market, highlighting the health benefits of organic foods. The report then delves into the business environment of Shanghai, including its competitive landscape and the process of starting a business there, such as the WFOE model. The study focuses on the organic company's logistical strategies, including production methods, information flow, and material handling, with an emphasis on adapting to the Shanghai market. The role of a logistics manager is also discussed, outlining key responsibilities such as inventory management, resource allocation, and delivery scheduling to ensure customer satisfaction. The report concludes by emphasizing the importance of effective logistical processes and management for success in the Shanghai market.

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Whole foods stores in China
Introduction
According to Fung et al. (2016), Whole Foods Market (WFM) is a grocery firm that deals with
organic foods. These foods have significant health benefits to consumers. Therefore, the products
are designed for a specified target market. Thus, the consumers are identified as educated with a
better understanding of the organic products. Indeed, the WFM firm ought to satisfy their clients
by providing them with the quality products to meet the demands of the consumers. Thus this
study focuses on the whole foods market in Shanghai.
Background
Shanghai is the leading city in china and with a high population compared to the other cities, and
it is considered as a cosmopolitan city. Indeed, the city is located near the river Huangpu which
outflows to the sea, making the city ideally for trading business. Notably, various activities are
carried out within the town, including fishing. (Juan et al. 10) The shanghai city is also a set of
tourist attractions, whereby it holds the museum collections, and it also has European
architecture houses.
Additionally, there are also temples and markets within the city, and the Yu Gardens is also
located in shanghai, which is the primary archive of the town. Consequently, the city has the
main shopping street where residents and visitors shop. Shanghai city is a welcoming city with a
sense of diversity. Thus, the city is business-oriented and welcoming with literate persons.

Starting a business in shanghai
Shanghai is a competitive area business whereby, in the year 2018, it was the fifth in the global
centers' index. Additionally, it is known as china's financial center, and it has a popularity for
foreigners. Thus, foreigners who make approximately 65% of the company’s structure set up
their own companies and businesses through a form known as wholly foreigners owned
enterprise (WFOE) which is a private company in china. Besides, WFOE was meant to
improvise the advanced technology in the Chinese organization, although terms and conditions
apply ( Liu and Fang). Ambler et al. (2016) there are few steps to follow while starting a business
in shanghai, including:
i) Consultation from a legal agency or a firm: before starting a business in Shanghai, it is
advisable to seek professional assistance from the residents who read and understand the legal
form for better understanding and acknowledgment.
ii) Business scope: there are individual businesses that a Chinese government allows for the
foreigners, while some are restricted. Thus, in some markets, there include legal formalities that
ought to be followed depending on the nature of the business or a company. Indeed, foreigners
who tend to have a partnership with a particular company in china must understand the
requirements and qualifications.
iii) Shares: once the business owner has understood the constitution and has decided the
company joins or a business to own, it is crucial to clear with the Chinese government.
Therefore, get a license and recommendation letter from the foreigner's bank to avoid incurring
challenges.
iii) Business permit: having the correct documentation, a foreign company can name the
company and have partners and form a board of directors to run the industry legally.
Iv) Approval: a business owner or a company is advised to get approval from responsible and
registered authorities. Thus, follow the rules required by the government and importantly
understand all the requirements.

v) License: a specific procedure is followed while filling a license form. Thus, gather all the
documents required and attach them to the license application form. Sign where required and
wait for further directives.
Whole foods in shanghai
The organic company has followed all the legal formalities while setting up a company in
shanghai. Additionally, have a strategy in terms of the procurement process, thus win the large
crowd and meet the expectations of the target market. Therefore the organization ought to build a
stable platform and create room for more whole foods companies in shanghai city. China has
various organic markets supplying products across the country over the decades.
Additionally, there are lands managed for organic production, whereby data shows that China is
among the top five countries in the world with the organic markets. ( Liu, Dongyan, et al. .165)
there are various places known for the production of the natural products in china in the north-
eastern and coast provinces, including; THeilongjiand, Shandong, and Zhejianghus, with the
available source of the natural products it becomes easy for the whole foods company to start the
logistic procedure.
Logistics process of the whole foods company in shanghai
In the logistics process, the company tends to implement a preferred solution for producing and
distributing products according to market demand. Thus, for the whole food company in china, it
has to reconsider the source of organic products and handling. Additionally, factors like
production cost, speed, efficiency, and the quality of natural products. logistics Prajogo et al.
(2016) process is as follows :
i) Production: depending on the nature of the business, companies have two methods of
production, which are sale order production and make to stock production. Shanghai's whole
foods company is preferred for the sales order production since it has specified customers and
the consuming the products, and they are also perishable; thus, producing products according to
the customer's order. The method will help the organization to reduce waste in the warehouse
and also reduce the transportation cost.

ii) Integration of information flow: in this process, the whole foods company should work on
minimizing the communication while the production activities are ongoing and less supervision
for more effectiveness. Therefore, the whole foods company should be cautious about the
production time of the organic products. Thus communication is essential to ensure that the
products are received as ordered and in good condition. Furthermore, speed is also crucial to
meet on-time delivery with no delays. Thus, the means of transport should be convenient,
considering that shanghai is highly populated, and there is a possibility of experiencing traffic
challenges. Therefore ferry is the preferred means of transport since shanghai is located near the
rivers.
ii) Material handling of the products: this process involves the transportation, design, packaging,
and management of products from the manufacturing to the end-user. Thus shanghai whole foods
company should manage the inventory whereby; ensure that the organic products are designed to
attract the consumer and safe for the use.
Role of the logistics manager at shanghai whole foods company
There are various activities carried in the supply chain company. Thus, logistics managers are
employed to control, coordinate, and manage the movement. The whole foods company in the
Shanghai procures raw goods from the sources and the transport the products for manufacturing
in their warehouse. Thus, produce, package, and distribute the products to the consumers and
retailers for consumption. (Derwik, et al. 69) the logistics manager should attend to the following
duties including:
i) Inventory: a logistics manager should have full records of the list rotating within the
organization. Thus in case of theft or he/she can easily track the product. Therefore, the shanghai
manager must have the full details of the organic products to avoid producing more products
than required, whereby reducing waste.

ii) Allocating resources; organization manager must know how the inventory is operating within
the organization whereby, he/she can is more efficient with the stock available at the industry
and also for future references
iii)schedule for deliveries: the logistics manager at the shanghai whole foods company should
have precise details regarding their partners. Thus, while shipping the organic foods, ensure that
every order is delivered as ordered and on time.
iv) Communication: logistics managers must do a follow-up, control, and coordinate the shipping
of organic products. Additionally, bargaining on the transportation cost and ensuring that the
products get to the consumer in favorable conditions.
Conclusion
Shanghai is a diverse city, and businesses can perform well depending on the location and the
target market. Indeed, the residents from china are well exposed to organic foods since they have
several sources; thus, it becomes easy for the entrepreneur to market the whole grains. Indeed,
work on logistical processes and management to ensure that the clients are satisfied with the
services and the products.
Work cited
Derwik, Pernilla, Daniel Hellström, and Stefan Karlsson. "Manager competences in logistics and supply
chain practice." Journal of Business Research 69.11 (2016): 4820-4825.
Prajogo, Daniel, Adegoke Oke, and Jan Olhager. "Supply chain processes." International Journal of
Operations & Production Management (2016).
Liu, Fang. "How to Set Up a Wholly Foreign-Owned Enterprise in China: Procedure and Requirements."
Ambler, Tim, Morgen Witzel, and Chao Xi. Doing business in China. Routledge, 2016.
Juan, Wang, Wan Yong, and Li Jiao. "Analysis on Role Evolution and Cultural Characteristics of
Shanghai Old Town." China Ancient City 10 (2017): 14.

Liu, Dongyan, et al. "Distribution and sources of organic matter in surface sediments of Bohai Sea near
the Yellow River Estuary, China." Estuarine, Coastal and Shelf Science 165 (2015): 128-136.