Recommendation

Company Problem

1. Limited Product Quantity

Wine is a product made in a special way. Manufactures make limited amount of product every year, Due to the limited amount of quantity only a certain amount of product is able to be shipped, every year.

2. Inventory cost

- Spoiled Product
- Transportation Costs

Having to outsource our inventory cost, has been working in our West cost Warehouse, however on our east cost, there has been an increase in damages, spoilage, and transportation cost. This growing issues has brought us to come up with 2 Solutions.

Solutions

• Limited Product Quantity

Ordering several years ahead of time, so manufacturer is able to produce more, However this will take many years, to be implemented. Thus we concluded that the risk and the investment is to high to implement this for our company currently however, we advice for our company to look for potential investors to supply the necessary funds to be able to do this.

• Inventory Cost

Outsource Inventory cost to Manufacturer 

Outsourcing our inventory costs to our manufacturer. Our manufacture would hold our inventory and we would pay for the shipping to our clients

Owning Storage facility/ Transport 

No more outsourcing to others we A.E.W. hold all the inventory and we would apply a lean system, in the warehouses, to reduce spoilage, and waste.
Also owning our own transport system would allow us to transport our goods with limited damages during the transport.