Final Project: Distribution

One key loyalty factor is good repair service, which in turn depends on fast and reliable parts distribution.

The market entry strategy is to enter regional markets progressively. Las Vegas is seen as the first entry market due to its closeness to produce suppliers in the year-round Salinas growing area. Las Vegas also has the demographic/up-scale profile of a Salad Ready-accepting market. Edwards Salads intends to explore the possibility of export to Asian markets, particularly Japan. The current unfavorable export climate caused by the strong US dollar may impede rapid development of Edwards Salads markets, but several Nevadan produce brokerages have begun to offer lettuce to Edwards Salads customers.

Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.

The first facility will be established close to the Las Vegas, NV Area market (either NorthWest or SouthWest). The proximity of the supply region will be a cost-reducing factor. A specific sity will be chosed by focusing on the following issues: wage rates, labor unions, access to transportation, taxes, and county inspections.

One production line consists of the following items:

• 1 preparation table with conveyors (operated by 16 people): raw leaf lettuce heads are trimmed and cored by hand
• 1 water chiller: to maintain wash water at low temperature
• 1 automatic cutter: selected raw material is cut to required size
• 2 automatic washers: one to wash cut leaves in agitated water; one to wash and rinse cut leaves
• 5 spin dryers (operated by two people): cut leaves are dried
• 1 dumper: cut leaves return to original shape
• 1 electronic scale: cut leaves are weighed in lots
• 2 automated fill-form & seal machines: cut leaves are packaged in air-filled sealed bags
• 1 automated carton packing machine: bags are put in cartons
• 8 transfer conveyors: product is transferred from each one of above units to the next