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Submission Date: 22 March 2021: CASE STUDY: Ace Dairies Summary

Ace Dairies provides home delivery of milk and dairy products to customers. Roger collects ordered products from a cold store and delivers them to around 500 customers daily. The main logistics problems Ace Dairies faces include variable daily demand requiring spare stock, limited shelf life of dairy products, maintaining service during holidays, and potential delivery issues from their supplier Unigate.

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129 views3 pages

Submission Date: 22 March 2021: CASE STUDY: Ace Dairies Summary

Ace Dairies provides home delivery of milk and dairy products to customers. Roger collects ordered products from a cold store and delivers them to around 500 customers daily. The main logistics problems Ace Dairies faces include variable daily demand requiring spare stock, limited shelf life of dairy products, maintaining service during holidays, and potential delivery issues from their supplier Unigate.

Uploaded by

Sara Kiran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Submission date: 22nd March 2021

 National University of Modern Languages

Islamabad, Pakistan

2020

CASE STUDY: Ace Dairies


Summary:
Ace Dairies gives a home delivery service for milk, dairy products and a range of related goods.
Roger Smitherman provides a combination of goods and services. Every day the information
system calculates the likely sales of all products in two days’ time. Unigate depot acts as a
wholesaler for milkmen in Wales and the southwest of England. Roger collects the order from
his cold store and starts delivering to the customers. Roger's main concern is maintaining his
sales over the long term. There are several specific problems facing Ace Dairies like because of
the variation in daily demand, so he has to carry spare stock. He cannot carry too much, as dairy
products have a short. Roger aims at keeping this waste down to 2 per cent of sales. There are
also problems maintaining a service during holidays, or when Unigate has difficulties with their
deliveries. Demand for doorstep deliveries is declining, as people buy more milk at
supermarkets. Roger's generates new customers by canvassing, delivering leaflets, special offers,
carrying a range of other products, and so on.
Questions

1) Describe the supply chain for milk.

Supply Chain of Milk:

 Dairy Farms: Dairy farmers strive every day to produce top quality milk which they
supply to the wholesalers.
 Wholesaler: Unigate depot act as a wholesaler for milkmen. They take orders from
Rogers and transport goods through refrigerated trucks to cold store.
 Distributor: They take orders from customers collect milk and dairy products from the
cold store and deliver it to the customers.
 Customers: Rogers have 500 customers on regular basis and special orders occasionally
they take orders from them and deliver it to their doorsteps.
2) Where does Ace Dairies fit into this? What specific activities form the logistics in
Ace Dairies?

Ace Dairies is a distributor that provides home delivery service for milk, dairy products. They
take orders from customers and supply to them. They purchase their orders from Unigate dairy,
collects from cold store and delivers it to the customers.

Roger’s logistics consists of the following activities

Purchasing: The flow of milk and dairy products in Roger’s delivery service are initiated by
a purchase order. They purchase it from the dairy farmers.

Storing: They move materials from the receiving area into storage and make sure that they
are available when needed.

Packaging: They wrap goods to make sure that they are properly protected during
movements so that there would be no damages.

Receiving Orders: There is an information system which contains full details of all Roger’s
500 customers, including their regular orders, special orders, where to deliver, how they pay,
and so on. The system calculates every day sales and it makes sure that the materials
delivered match the order and acknowledges receipt.
Order Delivering: Roger collects the customer order from his cold store removes the
materials from the rack consolidate into a single load and starts delivering to customers.

3) What are the main problems that Ace Dairies has with logistics?

There are specific problems facing Ace Dairies like some variation in daily demand, so Roger
has to carry spare stock. He cannot carry too much, as dairy products have a short life and the
best time to deliver perishable products is up to 11 days, the challenge is to maximize the
remaining shelf life. Other challenges are providing freshest products, lowest shipping
costs, keeping the waste cost down and the most frequently used customers that meet
their needs dairy products daily transport should keep one way in order to keep
feed fresh. The main purpose of dairy logistics is to achieve high standards of qualified
fresh products for a limited shelf life. The best time to deliver perishable products is
up to 11 days, as the key challenge is to maximize the remaining shelf life. There are also
problems maintaining a service during holidays, or when Unigate has difficulties with their
deliveries.

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