The project for a logistics gateway to Europe is about to set up a physical distribution system into the European market. The distribution system has to be developed for a non-European company with a new or existing product in a European market. Therefore we had to chose a couple of European countries to export to. For this project the feasibility was not important but the countries chosen must be realistic from a marketing perspective. This report contains a physical distribution chain, consisting of different pre-steps and the final distribution chain. First we began with a clear founded choice of company. We chose Apple for our company to work with, because they are eagerly awaited on the European market. After explaining the choice of the company we explain why the IPhone is such a unique product. Then we will refocus on Apple, naming the vision, mission and strategy of the company, which has of course an important impact on all our decisions. After that we explain the places of manufacturing and distribution of the IPhone parts and the time lines of the transportation from Asia to Europe. The following steps were an estimation of sales and the stock levels in the warehouses, global alliances and partner opportunities, global network and the distribution of the IPhone. Then we explain our distribution strategy, rounding it off with a physical map, where you can see exactly what will be transported.
[...] (SACL) and Lufthansa Cargo AG (LCAG) under the law of P.R. China with limited liability. Both companies share 50% of the total equity, which is RMB32 million. ICCS started operation on Sep. 1st aiming to provide high quality cargo services to various airline companies, cargo agencies and cargo owners based on a neutral principle.[4] The flight from Shenzhen to e.g. Dublin takes about 15 hours. In Dublin the parts must checked again at the airport and loaded on a truck. Then they are transported again to the assembly plant. [...]
[...] Therefore there had to be chosen a couple of European countries to export. For this project the feasibility was not important but the countries chosen must be realistic from a marketing perspective. Beside the time and effort invested in this project, there were also lessons in International Operations Management which has led to this result. Therefore we would like to thank Mister Arends for his lessons in International Operations Management, for his support during the meetings and for answering all of our questions. [...]
[...] In regards to investment in innovation and research as a percentage of GDP, it scores higher than the EU average coming in sixth place. Contribution of Belgian companies in this area is very high. It accounts for around 64% of the investment in research and development. Belgium also has more inhabitants that are active in this area that the European average. It has 929 scientific publications per million inhabitants a year. Another important factor is the continuing growth of the ICT secotr. The proportion accounted for by the ICT sector in the Belgian economy grew from in 1995 to in 2004. [...]
[...] From Ireland it will be distributed to France and Spain. There are three options to choose from: intensive, selective or exclusive distribution. The decision is mostly depending on the type of the product: convenience, shopping or specialty goods. The IPhone will belong the last type of products, the specialty goods, as it is a very attractive and innovative product. The buyer is prepared to make effort, for example to pay more or to go to the nearest city, as Apple will use the option exclusive distribution. [...]
[...] From there the phones will be transported to the shops on demand by K&N. Physical mapping: Distribution IPhone United Kingdom Spain 2 China Ireland France 4 Germany 5 The Netherlands Belgium IPhone movement IPhone components are distributed from China to Apple's European distribution and assembly centre in Ireland to be finally assembled The assembled and packaged IPhones are distributed to Apple storage centres in the UK from Cork, Ireland by air and truck The assembled and packaged IPhones are distributed to Apple storage centres in Spain from Cork, Ireland by air and truck The assembled and packaged IPhones are distributed to Apple storage centres in France from Cork, Ireland by air and truck The assembled and packaged IPhones are distributed to Apple storage centres in the Netherlands from Cork, Ireland by air and truck From the Apple storage and distribution centre in the Netherlands, the products are distributed to T-mobile shops in Germany by truck From the Apple storage and distribution centre in the Netherlands, the products are distributed to Proximus shops in Belgium by truck Physical Map Conclusion Our physical distribution strategy for the new IPhone from Apple is to use the current developed infrastructure which is already used for the IPod and distributing the IPhones from the warehouses to the operator's headquarters and the Apple Stores in the countries UK, Spain, France, Belgium, The Netherlands and Germany. [...]
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