Participants
A supply chain consists of all partners that are directly and indirectly involved with serving the customer. Every aspect of the operation is included in the supply chain. These would include suppliers, the manufacturer, transporters, distribution centers, retailers, and the customers as well. The supply chain would consist of the suppliers of mushrooms in Amsterdam, Freshfoods, Aero Marine Logistics providing all correspondence for the transactions, advertisements, all forms of deliveries and transportation, and then the customers in the end. There needs to be a well established relationships between all parties involved to be successful.
Risk
There are cost for having a partnership. The costs Aero Marine Logistics (AML) and Fresh foods include: cost of mushrooms which is Freshfoods cost; cost of ten 20-foot used containers for expansion; cost of ten 20-foot new containers for expansion; cost of five 40-foot containers for expansion; cost of ocean transportation; cost of land transportation; return costs for empty containers; power equipment purchased for running refrigeration containers; and energy costs for the power equipment used for refrigeration (utilities). Then there are other costs which includes labor, import fees, holding costs, shipping and handling fees, utilities, rent, and/or maintenance.
Cost of Mushrooms
Total Mushrooms to be supplied = 150,000kg per month *12 months = 1,800,000kg
Freshfoods willing to pay per kg of mushrooms US $ 0.2 0
Total cost per month US $30,000
Total cost per year US $360,000
Total cost in Indian Rupee 13.5 lakh (1 lakh Indian rupee = US $2,222)
Total cost in Indian Rupee (per year) 162 lakh
The risk would be shared by Mr. Singh and Mr. Kuma in Aero Marine Logisitics as well as Mr. Maan, Chairman of Freshfoods. The cost of ten 20-feet containers for expansion may be divided into two categories: new and used.
New Used
One container cost 9 lakh One container