skills levels of operators and requested service levels as factors impacting warehouse operations will affect Zero-sum Importers.
Read the scenario below and answer the questions that follow:
“[The] global gelatin market size was valued at USD 5.80 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.5% from 2022 to 2030. High demand for gelatin in functional food applications due to its ability to prevent several diseases, improve food quality, and in food fortification is expected to fuel the industry’s growth.”
The above summary shows that businesses that deal in selling gelatin and those that use gelatin in their production processes are in for a busy time over the next five to eight years. Most of the gelatin consumed in South Africa is imported from other countries, therefore, inventory control and storage (warehouse) management are going to be crucial, to ensure that stock is available at the right time, the right quantity and with the right quality. Zero-sum Importers, based in Gqeberha, Eastern Cape, import gelatin into the country from Europe, and sell it to businesses that use it in food production.
Q.1.1 Examine how skills levels of operators and requested service levels as factors impacting warehouse operations will affect Zero-sum Importers.
Q.1.2 Zero-sum Importers are considering outsourcing the distribution of their product, in view of the projected sales. Support Zero-sum’s outsourcing idea by highlighting below advantages of outsourcing distribution that are applicable to the business.
1. Focus on core business
2. Cost saving
3. Flexibility to expand
4.Location suited to your network
5. Benefit froman organisation's experience
6. additional value-added services
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