Distribution Cost

Anita Wilson`s worry regarding the minimization of unnecessary shipments is quite relevant. Because as
per her it can be avoided by increased number of warehouse facilities and optimizing the transportation
cost (Exhibit 5). The result from the LP analysis has shown the location wise production cost and
transportation cost, which can be triangulated to find out the location incurring a greater chunk of
aggregated cost. Further such locations can be identified and pooled among clusters on the basis of their
geographical proximity and a central warehouse facility can be created by center of gravity approach.

For example, the location named as DON, MTP and WOO have higher aggregated transportation cost (all
the transportation costs to one location from all others have been added.) than others. Clubbing these
locations together as a single zone, we can apply center of gravity approach to incorporate central
warehouse location.

Detassling

As the market is hyper dynamic in recent 4 years, the competitive advantage at each stage is quite
important. A process such as Detasseling, which is one of the important, but time consuming process
takes 50,000 manpower and hundreds of mechanical machines. An experimental outsourcing strategy
for the process can be done for one financial year keeping two major factor in consideration; quality
(standardized) and cost. As a global leader, maintenance of the quality is paramount. Hence the tradeoff
strategy can be decided by the management accordingly after the experimental results.

Transportation

Currently the company is handling 400 transportation partners with more than 12000 trucks for
production segment and 20000 for marketing process. Anita Wilson agrees this as a cause for multiple
unnecessary shipments. The company can conduct a cost-benefit analysis for the 400 partners. Based on
the result as per company a fixed cutoff for BC ratio will help us to find the underperforming partners.
Along with this analysis other factors such as remoteness of delivery, time lag and years of partnership
can be considered. But in case of foreign locations the company has to consider the local approach
(outsourcing) for transportation partners to reduce uncertainty.

Market Development

As we observed that company is growing in both production and productivity, there is a need to develop
new market places. Another reason for this is the increase in discard rate which is growing constantly.
To overcome this problem and utilize the high productivity of the company we need to explore new
avenues and market our product in potential global markets. Entering new markets would eventually
strengthen company’s reach in global market. We can penetrate markets where there are high imports
from other countries, being the market leaders we can easily compete on prices and establish our brand
as a lucrative option over other based on its high quality.

Government Policy Changes

Due to the current changes in the political environment and introduction of Freedom to Farm bill there
need to be an investment that the company need to make to find the current market study the new
emerging market trends. As the number of increase in the farmers growing the crop or decrease in it
would require the company to modify its strategy in the long term.