Answer:
Explanation:
Nokero would benefit in maintaining its fulfillment warehouses in Africa, Asia, and Latin America. Maintaining these warehouses allows Nokero to efficiently transfer its products without the risk of running out of stock. It may be helpful to use Total Cost Analysis, which is ananalysis of all costs that include shipping, inventory, overhead, and risks (Daniels, Radebaugh, &Sullivan, 2015), Nokero may run into issues with costs related to shipping. However, the benefit of product transfer speed may outweigh the costs.Challenges that Nokero face in accessing remote locations may be solved through negotiations of a contract manufacturer, a contracted company who oversees supply-chain and manufacturing (Daniels, Radebaugh, & Sullivan, 2015). Through a contract manufacturer, Nokero can push products to remote locations that are not normally in the shipping radius of its fulfillment plants. Alternatively, Nokero can adopt contract manufacturing for all of its manufacturing and supply chain, while eliminating its current setup. However, Nokero would lose control of these processes – a risk that a global company may not be keen to take.18-5Building a distribution footprint could be accomplished by setting up a logistic system that would reach the current network of customers and also be able to outsource some of their distributions to specific companies of their choice. Nokero should open an additional distribution
NOKERO4center in the African region. As the text informs, Nokero’s “largest customers are distributors, associations, and individuals that have ordered thousands of light bulbs, including Anzocare (South African Alternative Energy Association) and major individual distributors from India, Kenya, Zambia, Ghana, and Fiji” (Daniels, Radebaugh, & Sullivan, 2015 p.724). Because of these customers’ location, additional stress is placed on their current factory located in China, viathe port of Shenzhen, which fulfills large commercial orders while smaller orders are outsourced to their partner, also in Shenzhen, China. Keep in mind that out of this current port, Nokero also fills orders for another large region, which includes, “Afghanistan, Australia, Nigeria, Central America, Cote D’Ivoire, Mali, Burkia Faso, and Vietnam. These regions should be emphasized out of the recommended new location in the region of Africa.
