Introduction of Organic Fruit Juice

        Organic Fruit juice would be produced which is made of organic fruits to ensure that it is healthy and natural. The niche focus is the target market belongs to upper class rich and can afford the expensive organic fruit juice. This is a niche market as limited but very profitable as per the market plan. Customers would like to buy this organic fruit juice because they are very health conscious and also like juices. These juices will be made of the organic fruits which are tastier and addictive to the drinker. Therefore, its customers would like to have organic fruit juice on daily basis and in large quantity.

        This product would also be marketed as good for health and it makes you look better when you drink natural (Rao 2014). This would be the local strategy as mostly people believe in eating good leads to looking good. Therefore, this local strategy is going to be working a lot. Organic fruit juices are the most demanding product so far because people have become very conscious about their health and organic food and juices is the ultimate solution to achieve fitness goals (J 2014).

Supplier Network of Organic Fruit Juice

        The farmers will be in contact and part of the network that number of farmers would be assigned the job of planting the fruits using the organic fertilizers and other raw material which results in get the pure organic fruit would be used for the organic juice (J 2014). That number of farmers would become our suppliers in the business; they would be working on our agricultural land acquired by the business. As the business volume increases, supplies side is also going to be increasing from farmer’s side. More farmers would be held once business starts growing.

Distribution Network of Organic Fruit Juice

        This is the initial plan where our organic juice brand would be sold on the big retail chains and small ones would also be included. The business would start the marketing of the brand one month before its availability and then it would be ensured that it is available on the all popular retail chains. Once marketing gets successful and succeeded in reaching the brand to large number of potential buyers, things are going to be favorable (Buchanan 2018). These big retail chains can be proved as the best distributors in the market.

Manufacturing of Organic Fruit Juice

        Company would install the one manufacturing unit where the organic fruits would be processed into organic fruit juice. In the beginning, one manufacturing unit would be enough to meet the demand and if demand starts growing rapidly in the market then more manufacturing units will be started installing. Its skilled and unskilled workers would also be hired having relevant experience and accordingly things happen in the right direction. There will also be machines acquired which processes the organic fruits into juices (Rao 2014). These machine operators are the skilled workforce in the industry which would also be hired.

Designing Supply Network of Organic Fruit Juice

        In the beginning, one month raw material will be acquired on the initial basis as demand is expected to be lower. This one month time period is actually “Lead Time” which can be extended up to three months when business starts growing. This lead time plays a critical role in supply chain management and setting the distribution network. Farmer’s products the organic fruit at large quantity which would also be stored so that to avoid any risk and improve the responsiveness rate in time when demand is unexpectedly increase. The focus is made on highly effective and on time distribution which can play a critical role in the business success. Farmers are the first step in supply network and they play critical role (J 2014).

Schedule the Production of Organic Fruit Juice

        The schedule production style would be “Make to Stock” as there is an open market where product will be distributed through the retail chains. There is no such thing as “Made to Order” in the open market. Over the time, management would learn the trend of sales during different times and accordingly “Make to Stock” would be managed. The schedule for production is critical as it can be wastage if consumed for long and loss of money too. Therefore, company would put their best efforts only to stock as much as which can be released within the expiry date. Since this is a perishable product so supply chain management and demand order plays most critical role in this business (Buchanan 2018).

        Production is always scheduled properly when one year time period is passed so that all trends on annual basis can be learnt. There is a time when demand for the all specific products increases and mostly are seasonal products (Rao 2014). Therefore, production department will be taught that trends are more important for managing the schedule.

Key Operational and Financial Challenges in Expanding Capacity of Supply Chain

There are several challenges involved in expanding the capacity of supply chain discussed in the following.

Financial Challenges of Organic Fruit Juice

        Expand the supply chain capacity means more investment in production, warehouses, and funds for operating cycle and inventory, all this takes finances and funds. Financial management becomes more complex because cash outflows increases and it also freezes down the investment in inventories. It is very critical to maintain the cash inflows and outflows in the business, several businesses have been bankrupted only because cannot manage the cash flows (J 2014). When supply chain capacity increases, there is going to be more cash outflows and then it increases the risk of bankruptcy. It is better to ensure that enough funds in reserves are available to make such decisions.

Operational Challenges of Organic Fruit Juice

        Operational challenges are extreme nature which occurs after the decision of expansion in supply chain capacity. It means more farmers requires and need to be hired, more land needs to be acquired and then more number of warehouses are also required to store the raw-material. There are also more workforce is required to do the same which would manage the expanded operations (Buchanan 2018). All of these increases the operational challenges as it become the operations management more difficult and challenging at the end. Things are going to be more complicated once the supply chains expand.

References of Organic Fruit Juice

Buchanan, E., 2018. How To Create A Successful Small Business Plan. [Online]
Available at: https://www.forbes.com/sites/forbesfinancecouncil/2018/07/18/how-to-create-a-successful-small-business-plan/#21e80c132e94
[Accessed 27 November 2018].

J, C. J., 2014. Suja Juice: The Unlikely Team That's Building The Country's Fastest Growing Beverage Company. [Online]
Available at: https://www.forbes.com/sites/jjcolao/2014/01/22/suja-juice-the-unlikely-team-thats-building-the-countrys-fastest-growing-beverage-company/#67069b1d710c
[Accessed 27 November 2018].

Rao, D., 2014. Are You Wasting Money And Time Writing Your Business Plan?. [Online]
Available at: https://www.forbes.com/sites/dileeprao/2014/05/07/are-you-wasting-money-and-time-writing-your-business-plan/#38b99a7f617c
[Accessed 27 November 2018].