Qualification Unit number and title

DIPLOMA IN MARKETING DIM 2103

Student name Assessor name

Yap Ling Yee
Lim Jia Sze
Toh Kah Yau Nor Naiem Bt Babu
Lai Yong Qi
Lai Rui Yu
Date issued Completion date Submitted on

WEEK 2 14th October 2021 WEEK 6

Assignment title COFFEE SHOP’S LOGISTICS PLAN

Assignment front sheet

In this assessment you will have

Learning Outcome Evidence
Learning Assessment the opportunity to present Task
(Page no)
Outcome Criteria evidence that shows you are no.
able to:
Illustrate the basic concept of Illustrate the basic concept of
LO1 modern logistics LO1 modern logistics N/A

Explain the organization, Explain the organization,

scheduling, pricing, and scheduling, pricing, and
LO2 LO2 N/A
controlling of order controlling of order

Organize the project planning Organize the project planning and

LO3 and realization of project LO3 realization of project N/A

Learner declaration

We certify that the work submitted for this assignment is our own and research sources are fully acknowledged.

Student signature: Date: 14th October 2021

Assignment Brief

Unit Number and Title DIM2103 – Fundamentals of Logistics

Qualification DIPLOMA IN MARKETING

Start Date Week 2

Deadline Week 6

Assessor Nor Naiem bt Babu

Assignment Title COFFEE SHOP’S LOGISTICS PLAN

Purpose of this assignment

You have been employed as a consultant for [Coffee shop name], a national coffee shop brand that are planning to
expand internationally. They source coffee beans from many different countries and have a range of product and services
including self service machines that operate in Malaysia. They are planning the expand globally and you are required to
investigate and explain the concept and practices of Logistics to inform them how to proceed during their own expansion

Report Outline

1.0 Introduction
1.1 Background of company
1.2 Vision and mission
1.3 Organizational chart

2.0 Content
2.1. The importance of Logistics
2.2. Organization, scheduling and control
2.3. Strategies of Logistics
2.4. Logistics pricing and marketing

3.0 Conclusion and Recommendation

3.1 Conclusion
3.2 Recommendation

Note: In above discussions, include where applicable, citations of what relevant reputable publications say.

Instruction:

1. The report MUST contain pages of min 8 pages and a maximum of 10 pages.
2. Times New Roman Font 12, Justify and 1.5 Spacing
3. Mode: GROUP [4 / 5]
4. Submission in the form of a written report (Hard or Soft Copy) submitted in CLASS OR COURSE
NETWORKING (CN)
5. Date of Submission: WEEK 6
6. PLAGIRISM EXCEED 25% WILL AUTOMATICALLY FAILED

NOTE: AVOID PLAGIARISM!! All the assignments will be checked by Turnitin for identification of any possible
plagiarism!

UCSI COLLEGE

DEPARTMENT OF BUSINESS

ACADEMIC YEAR 2021/2022

Subject : DIM2103 – Fundamentals of Logistics

Semester : Sept 2021

Major : Diploma in Marketing

ASSIGNMENT COVER SHEET

Course Details

Subject Code : DIM2103

Subject Title : Fundamentals of Logistics

Trimester : Sept 2021

Title of assignment : COFFEE SHOP’S LOGISTICS PLAN

Tutor’s Name : Nor Naiem Bt Babu

Important Note : Submission of assignments is the responsibility of the students.

Failure to reference may result in a zero mark

Student’s Details

1. Name and ID : Yap Ling Yee 2020000070

2. Name and ID : Lim Jia Sze 2020000125

3. Name and ID : Toh Kah Yau 2020000225

4. Name and ID : Lai Yong Qi 2020000290

5. Name and ID : Lai Rui Yu 2020000245

Table of Contents
1.0 Introduction........................................................................................................................5
 1.1 Background of the Company............................................................................................5

1.2 Vision and Mission...........................................................................................................5

1.3 Organizational Chart........................................................................................................6

2.0 Content................................................................................................................................6

2.1 The Importance of Logistics.............................................................................................6

2.2 Organization, Scheduling and Control.............................................................................9

2.3 Strategies of Logistics....................................................................................................13

2.4 Logistics Pricing and Marketing....................................................................................15

3.0 Conclusion and Recommendation..................................................................................24

3.1 Conclusion......................................................................................................................24

3.2 Recommendation............................................................................................................24

4.0 References.........................................................................................................................25
1.0 Introduction
1.1 Background of the Company
The Coffee Bean & Tea Leaf is a coffee manufacturing company. Herbert Hyman founded
the company in September 1963 to provide office coffee services. In 1966, Herbert Hyman
and his wife (Mona) spent their honeymoon in Sweden, where they discovered some of the
best coffee in the world. As a result, in 1968, he chooses to open the first coffee bean
business near Brentwood by importing, roasting, and selling great coffee in Los Angeles.

Moreover, Coffee Bean has expanded its menu to include exotic teas and has grown to 10
sites in Southern California since the 1970s. In 1987, an employee brought ice cubes, coffee
essence, and chocolate powder to the Westwood store, laying the path for the company's
renowned Ice Blended beverage. Coffee beans became popular after the advent of Ice
Blended. This beverage is the forerunner to Starbucks' Frappuccino. After that, when
Starbucks originally attempted to enter Los Angeles in 1991, it attempted to buy Coffee
Bean, but Hyman declined. The coffee bean business was unexpectedly helped by Starbucks
in Los Angeles, attracting curious people nearby.

The Hyman family sold the Asian brand to Victor and Sunny Sassoon, two Singapore
brothers, in 1996. After that, Sassoon quickly expanded the company to the United States and
overseas, founding its first branches in Singapore the next year and the first branch in
Malaysia the year after. They opened 29 outlets in Singapore and Malaysia in two years,
almost as many as Hymans did 35 years ago. In 1998, Sassoon and his old friend Severin
Wunderman acquired the parent company International Coffee & Tea LLC from Hymans and
globalized it.

Nowadays, The Coffee Bean & Tea Leaf has grown into a multinational company with 750
chain stores in 22 countries. Coffee Bean has many branches in San Francisco, Phoenix, Las
Vegas, Honolulu, Texas, and so on in the United States. In addition to having many branches
in the United States, The Coffee Bean & Tea Leaf also has branches in Australia, China,
Egypt, India, Dubai, Malaysia, Singapore, and other countries.

1.2 Vision and Mission

The Coffee Bean & Tea Leaf's vision is to become a "Simply the Best" specialty coffee and
tea roaster and global retailer. Their aim is to build a culture within the company that drives
their staffs to provide a high-quality experience to their customers.
1.3 Organizational Chart

Chairman of the board CEO

Sunny Sassoon John Fuller

Director, Operational Director Information

Excellence Technology
Ivy Griggs Ricardo Galiano

Vice president Information

Technology Novell Morris

Chief Legal Officer, Chief

Director of Operations,
Administrative Officer &
Strategic Initiatives Senior Vice President
Brian Bahreman
Terry Mansky

Learning & Development Vice President Human

President Americas & India Vice president of operation Vice president marketing
manager Resources
Sanjiv Razdan Cathy Zafer-Fredericks Paul Diver
Katie Harrison Barbara Stewart

Regional Learning & Director of Franchise

Head of digital
Development manager operation
Micheal Chachula
Brandon Minnis Peter Varva

Treasurer
Jogn Garrow

Marketing director
Christy Smith

Southern Regional Director

Lynda Baker

Business development
manager
Brian Reid

Senior marketing manager

Danielle Atwood

Purchasing manager
Anna Sauers

2.0 Content
2.1 The Importance of Logistics
Definition of Logistic

Logistic is usually defined as distribution networks and material management. Logistics

includes all warehousing activities from truck transportation of finished or semi-finished
products to customer terminals. To meet the requirements of customers, the process of
planning, implementing, and managing the efficient and effective transportation and storage
of products, services, and related information from the point of origin to the point of
consumption.

Logistic Management Objective

Every successful company leader knows the key essence of well-organized logistics. Of
course, The Coffee Bean & Tae leaf company is also without exception. They realize that
providing frictionless logistics is very important to meet the needs of consumers and surpass
the competition. Once an enterprise has a firm grasp of the customer's expectations, it must
design a plan to realize these expectations by using logistics. This requires the company to
have a firm grasp or evaluation of its tactic’s orientation. Logistics has become an important
part of supply chain management, which is used to plan, implement, and control the
movement and storage of goods and services to meet the needs of customers.
Minimize the transportation cost
Transportation is one of the main costs of logistics. In order to reduce the transportation cost,
the Coffee Bean and Tea Leaf company required consolidation of movements. The sort of
goods being delivered, the quantity of the package, and the distance all have an impact on
transportation expenses.
Increased efficiency
Increasing incoming and outbound logistics and transportation efficiency ought to alway be a
top objective for every logistics company. The Coffee Bean and Tea Leaf company develop
cost-effective transportation rates, while reducing overhead, processing costs per order and
products. Working closely with transportation suppliers can significantly enhance warehouse
operations, such as processes, layout and processes. In order to improve efficiency, the
Coffee Bean and Tea Leaf companies should consider letting suppliers perform added value
services such as packaging or quality check. This will aid in the detection of any problems at
the source. Similarly, establish a two-way carrier relationship with them, and share best
practices, trends and opportunities.
Minimum Manufacturing Costs
Manufacturing costs can be directly influenced by logistics management. For example, the
delay in picking up or delivering the products will delay the production. Hence, it pushed up
the production cost. Material handling is improved, and transportation is sped up with
effective logistics management. It also improves safety, thus reducing the transportation costs
of the Coffee Bean and Tea Leaf company. A comprehensive transportation strategy, for
example, with provisions for other routes, will improve delivery efficiency. Therefore, a well-
planned logistics management process can maximize the profits of enterprises.

7 Rights for The Coffee Bean and Tea Leaf Company

Right Product: The Coffee Bean and Tea Leaf company ensure that they are prepared the
right product for their customers, hence it can meet the customer satisfaction.

Right Quantity: When the receiver is receiving the goods, they should ensure that the goods
quantity is correct. If the quantity is different with the delivery order, it should report to the
company.

Right Condition: When packaging the products, the staff ought to ensure that the packaging
of the products is in the right condition. Hence, the products will not damage influence by the
packaging.

Right Time: The supplier ought to deliver the raw material such as coffee bean and milk to
the Coffee Bean and Tea Leaf company in time. It is because, this is a basic raw material, if
did not send the raw material punctuality, it will cause a loss to the company.

Right Customer: The services Coffee Bean and Tea Leaf company delivered to the right
customers such as students and office workers.

Right Place: The Coffee Bean and Tea Leaf company should ensure that the physical store at
the right place. For instance, at the famous or more people’s shopping mall, hence it will
attract more customers.

Right Cost: The Coffee Bean and Tea Leaf Company services charged at a suitable price;
therefore, they can ensure profit and also help gain a competitive advantage in the market.

Common Term in Logistic

The Coffee Bean and Tea Leaf company is using a Third party logistic. Outsourced logistics
services are provided by a 3PL (third-party logistics) provider, including any services that
need to manage one or more aspects of purchasing and performance activities. For instance,
the Coffee Bean and Tea Leaf company is corporate with the Postmates company to deliver
the products.

2.2 Organization, Scheduling and Control

Organization 
Functional structure 
The functional hierarchical element of The Coffee Bean and Tea Leaf structure refers to
gathering dependent on business functions. For instance, The Coffee Beans Company has a
human resources department, a finance department, and a marketing department. These
departments are generally apparent at the top of The Coffee Bean's corporate structure. This
characteristic is distinct. For example, the organization's human resources carry out
arrangements that apply to all cafes in the organization. The functional hierarchy of The
Coffee Beans structure works with hierarchical observing and control, with the CEO at the
highest level. 
 
Flow in Logistics 
Information Flow 

 
1. Suppliers 
The responsibility of the coffee beans suppliers is planting the coffee seeds, fertilizing the
planted coffee seeds, cut off the branches to keep the tree at a high for easy harvest, and so
on. 
2. Manufacturer 
The manufacturer needs to ensure that the coffee beans are roasted in the specification of The
Coffee Beans Company. For example, cleans the coffee cherry of diet, sun-drying the coffee
cherry, remove the skin of the coffee cherry get to the coffee bean, sorting the coffee beans
by size and quality of the bean, roast the bean, and collect all the roasted beans that the
company needs and packing the beans into jute bag and put a label on it. 
3. Distribution 
Distributors ought to manage the conveyance, stacking, and unloading of goods, and
guaranteeing goods and products are securely shipped. Also, leading stock reviews without
wasting much time and announcing any issues to The Coffee Beans Company. 
Material flow 
During the production and order fulfilment processes, logistics managers need to guarantee
material flow effectiveness to optimize stock flow. Wasteful cycles or off base
frameworks can lead to postponed deliveries, bad customer services, and systems that are not
prescribed procedures. Each time a product moves, it's a chance for an error to happen.
Autonomous Mobile Robots (AMRs) can help The Coffee Beans Company
maximizing the efficiency material flow. AMRs can help to keep up with better authority
overstock and goods flow and work on the development of material around a facility. They
are also particularly helpful in areas that change continually and where equipment, for
example, transports are not as successful. Upgrading the development of both raw materials
and gathered product all through a distribution centre gets materials where they should be
quicker and with less opportunity for spoil or loss. With more proficient and exact material
flow helped by innovation like AMRs; creation runs better, and customer delivery are on
schedule.
 
Money flow 
The money flow statements for The Coffee Bean company are operating activities, investing
activities, etc. Operating activities include cash received, cash paid on goods, and costs of
employees. The money received is the all-out cash for the food and drinks that are sold for
their customers.  For examples, The Coffee Bean Company is selling espresso and tea drinks
like Ice Blended and hot espresso beverages to customers. It also sells a variety of entire bean
espressos, coffees, leaf teas, and baked products to customers. The money paid on goods
means the cash paid out from The Coffee Bean to their suppliers. For example, the spending
costs on ingredients like espresso beans, running costs like lightning, heating, and rent of the
shops. Additionally, The Coffee Bean has employee costs paid. Employee costs paid covers
salary and another relevant spending on individuals, and it is including all the duties tax.
Other than that, The Coffee Bean has investing activities which means the cash
of the company spent or received from resources and assets, credit arrangements, or some
other investment they make. Buying new equipment, fixtures or even whole buildings shows
that a business is spending on development and extension. For example, barista equipment,
kitchen equipment, tables, and so on are the resources and assets of The Coffee Bean
Company. 

Reverse flow 

 
Normally, logistics manage provider that bring the goods towards the retail and customer. On
the contrary, in reverse logistics, the resources go to the last step back in the supply chain,
products move from the customer and the retail or to the warehouse and suppliers. For
example, customers return items or give feedback to The Coffee Beans Company. At the
point when a return happens in retail, the returned items will be gathered in a wide range of
ways and shipped off to the distribution centre. The distribution centre will return the
damaged materials or coffee beans that do not meet standard of Coffee Beans Company to
the supplier. 

Scheduling 
The Coffee Beans Company order 100units coffee beans, and the due date is 15 November
2021. 
1. Supplier collects beans: 2days 
2. Supplier package the beans: 1days 
3. Supplier send to distribution centre: 4days 
4. Distribution centre send to shop: 3days 
Total: 10days 
 
Forward Scheduling 

 
Backward scheduling 

 
Controlling  
Logistics costs are each of the costs caused by moving products from sourcing raw materials
to conveying customer orders and each progression in the between. For instances of logistics
costs are capacity costs, transport costs, inventory costs, and so on. The Coffee Beans
Company can utilize various methods of transportation to control transportation costs.
Shipping freight is a huge piece of a business, organization presumably faces increasing
expenses across all transportation logistics. In addition, the standard cost expansions in fuel
and gear costs, transporters face extra financial plan pressures from a wide range of bearings.
If there is a need to ship large of parcels and packages, the company can consider shipping
freight by sea since delivery by sea is generally more affordable than via air. In any case, the
time it takes may be costing the deals. Along these lines, the company should watch out for
transportation costs for various modes and don't be afraid to do the switch. Other than that,
Intermodal transportation is another alternative that transporters probably won't have thought
of they have generally depended on single modes. Rail transport is generally more affordable
than shipping, yet a mix of the two may be the most ideal approach to remain in a financial
plan and on schedule. One more way that mode adaptability can help is by limiting the use of
more expensive shipping options. Additionally, timely planning and scheduling also can help
to reduce transportation costs. The organization ought to guarantee activities are all around
planned goes far to cutting failures which can forestall pointless and expanded logistics
costs. Besides, The Coffee Beans Company can use scheduling to arranging works. For
example, create a plan that transit times from pick-up and delivery to shipping routes move as
planned. This will decrease delays or missed to the due date. 
The Coffee Beans Company should get the right to reorder point to control the inventory
costs. The company should get the right stock at the right levels, in the perfect place, at the
best time, and the right expense just as cost. To avoid overstocking stock, particularly stock
that is transient. The Coffee Bean Company need to consistently keep a limited stock
of coffee beans, as customers always expect that their coffee should be fermented with new
and fresh beans. Also, overstocking ties up capital that could be used to work on at the
business in alternate ways. Other than that, the company should use a nice technique to avoid
monitoring sales levels for each item. The company can utilize the information to set up a
base edge for every product, and once again request stock when the stock lessens.
Additionally, request new stock frequently, instead of stocking up for quite a long time.
Lastly, The Coffee Bean Company should prevent theft by customers or workers. For
example, analyse the current stock against delivery invoices and deals information every
week. 
In conclusion, businesses should control and plan the logistics costs like transportation costs,
stock costs, and so on. In the best stock control situation, the new stock should come in
simultaneously old stock is exhausted. Stock isn't exactly what is held in stock yet in
addition to things that are coming or are being sold on credit. By keeping up with great
delivery and getting records, a business can more understand its turnover rate and stay away
from long-term shortages. 
2.3 Strategies of Logistics
Supply Chain Planning System Application
Visibility
The capacity to trace parts, components, or goods in transit from the manufacture to the end
user is known as visibility. After the coffee beans are gathered and packaged, transporters
deliver the unroasted beans to ocean liners, which transport the beans to the storage facilities
in the United States. These storage facilities roast the beans before packaging them for
shipping to The Coffee Bean and Tea Leaf's central and regional distribution locations.
Coffee Bean company strictly controls over the roasting process and also assures that all of
its retail stores serve the same tastes. Coffee Bean's active involvement in the supply chain
guarantees that distribution centers can get the supplies to meet the orders. Coffee Bean
established a highly centralized logistics system to improve management and
coordination the company's global network. The company's automated information system
enables them to operate at a high degree of efficiency and flexibility, which both are critical
for organizational success.

Forecasting
The procedure of predicting future sales growth, consumer behavior, services, and
transportation all along supply chain is known as forecasting, even the most uncontrolled
situations or circumstances are considered. The importance to have forecasting is because it
may impact to the profitability of the company. However, when the forecasting goes wrong,
it may loss revenue or the non-consumption of products will increase the cost of holding
inventories. In my point of view, I think that The Coffee Bean and Tea Leaf should be using
the time series analysis to forecast which mainly focuses on changing patterns and patterns,
therefore totally depends on historical data. Coffee Bean company able to use data
visualizations to discover seasonal trends and learn more about why they happen. The
projections are updated as new data becomes available to reflect any new patterns. This
allows to confirm if current demand is rising, falling, or plateauing, enables to make well-
informed decisions on the fly.

Resource Sharing
Resource sharing is defined as what is the asset or ability that have in a company which
includes manpower, raw materials, and equipment. Manpower involves into daily operations
generates the company's outcome; therefore, the amount and quality of the outcomes are
determined by their abilities and expertise. Coffee Bean and Tea Leaf employs based on their
core beliefs and looks for applicants who suit their mission and vision. With Coffee Bean’s
growth and expansion, they provide their workers opportunities of career advancement
through ongoing development. To assure the productive workforce, Coffee Bean offers time
management as well as multi-skill training programs to their workers, and thus can track the
progression of each worker's development through the revenues they generate for the
company. Coffee Bean frequently monitors the progress of the stores and taking advice from
the franchisees to accord with these outlets in accordance with the aims and values and
assuring that each outlet is provided with the right materials and equipment required to
operate. Coffee Bean can offer quality products for each sale by using the best raw materials,
but this isn't enough yet to assure the quality of the final product. The raw materials must
come from a trustworthy source, be acquired according to specifications, and be delivered on
schedule.

Supply Chain Planning System Application

Production Planning
Production planning is a plan for a company or industry to produce and manufacture
modules. It makes use of resource distribution of staff activities, materials, and
manufacturing capacity to satisfy various clients. The main objective of production planning
is to design work routes and schedules that assure the most efficient use of resources, people,
and equipment, as well as to offer the tools to ensure that the plant runs according to the
plans. The Coffee Bean and Tea Leaf divide their expenses across many departments,
including advertising, facilities, raw materials, manpower resources, and transportation.
Coffee Bean and Tea Leaf is a value-driven firm, which means it prioritizes maximizing the
value of its products and services over cutting costs. Besides, the Coffee Bean and Tea Leaf
company provide high-quality products to the customer.
Demand Planning

Demand planning is a cross-functional flow, which helps enterprises meet consumers

'demand for products, while minimizing excess inventory and avoid supply chain
interruption. It can improve profitability and customer satisfaction and bring about the
improvement of efficiency. The Coffee Bean and Tea Leaf company evaluate the demand of
the customer of the quality coffee. Consumers think that the coffee made from coffee beans is
valuable in terms of price and quality. Coffee beans will be imported from those grown in
high altitude areas, because this will slow down the ripening time of coffee beans at lower
temperatures, thus creating a stronger coffee flavor. Moreover, The Coffee Beans and Tea
Leaf CEO even visit farms in person to get the best coffee to satisfy the consumers. In fact, it
shows that the quality of the coffee beans exists, which is very worthwhile for those who can
buy. As a result, enjoying high-quality coffee while paying a premium price is also a frequent
buying habit among today's consumers.

Logistic Planning

Effective logistics planning will guarantee that the company resource wastes as little as
possible. Coordination is critical to allow for minimum transportation movement, minimum
storage days, and maximum weight movement. Besides, it will improve profitability and
consumer satisfaction, and improve efficiency. The Coffee Bean and Tea Leaf company use
Postmates to deliver the products to the customer. When the customer subscribes to
Postmates and orders via Postmates apps, it will not charge any delivery fees because the
Coffee Bean and Tea Leaf company have a partnership with Postmates. Therefore, Postmates
will immediately send the products to the customer when they receive the order.

Customer Confidence

Loyal customers will always benefit a company because they are not only a powerful source
of revenue for the company, but also a free promotion method for the company. The
percentage of regularly repeated buying actions from customers in total of all sales is used to
calculate the repeat business rate. This will give a better understanding of how customer
loyalty affects purchasing activities. Coffee Bean and Tea Leaf strives to provide high-quality
products and services in order to enhance customer satisfaction. In order to record the
satisfaction of customers, an index is established to collect feedback from all the shops. This
index is critical in helping them enhance their product range and in-store services. Customer
complaints are widespread, which is why it is critical for The Coffee Bean and Tea Leaf
company management to detect and address any dissatisfactions with the customer in their
locations as soon as possible.

2.4 Logistics Pricing and Marketing

Product Delivery

The most important factor in product delivery is for Coffee Bean to segment their market and
targeting the right sector. In this case, we can see that their central target market falls into the
category of men and women at the age of 18 to 40. This is because research shows that they
are periodic coffee and tea drinkers. Coffee Bean is able to attract this market due to their
high-grade roasted coffee and outstanding service. From here we can observe that at Coffee
Bean, the customers are extremely reliant on the brand to provide it with the best product and
service on every visit which includes order filling, on-time delivery of goods, and quality
roasted coffee beans.

Understanding the Product

Since Coffee Bean has an unending list of menus, we will pick a few that we expect will sell
well internationally. The products are as follows:

a. Bali Blue Moon Coffee

b. Ultimate Mocha

c. Mocha Cold Brew

d. Classic Flat White

e. Americano

f. Café Latte

g. Cappuccino

h. Espresso

Coffee Bean is a leading brand in the food and beverage industry by providing their
customers with excellent food services so that they can increase customer loyalty and
satisfaction. In every visit to their cafes, not only are there coffees but there are also first-rate,
imported iced and hot teas that will be served along their branded paper goods such as tissues
and 100% edible turtle rice straw. A loyal and long-term customer would be enticed to
purchase their branded merchandisers such as flasks, mugs, tumblers, and glasses with their
signature logo on them.

Besides the professional in-house service Coffee Bean’s staffs offer, they have also
implemented a grocery retail program to provide their customers with products that they can
brew at home such as whole beans and ground coffee, bagged tea and loose leaf, and also
capsules, and portion packs. The forms of services that the brand offer are service variability
and perishability. This is because a customer might experience a difference in terms of
service at other branches of café. In the perishable aspect, coffee beans have a longer shelf
life as compared to other type of foods; however, this does not mean that they will last
forever because eventually the quality degrades and ultimately make them impossible to be
consumed.

Classifying Products Delivered by the Logistics company

Coffee beans are non-durable goods because they tend to go bad if they aren’t stored
correctly. This is why the supply chain of coffee beans can be quite the extensive process.
Their Arabica Coffee beans usually come from countries like East Africa, Latin America, and
the Pacific. Moreover, their staffs need to ensure that the roasted coffee beans from their
roasting facility is transported to Malaysia in the best condition because the quality of the
beans can be severely affected if they aren’t stored properly to keep them fresh.

Levels of Product

The core product of Coffee Bean and Tea Leaf is convenience and quality in a cup. They can
provide their customers with a fresh cup of high-quality roasted coffee at whenever and
wherever they please. On the other hand, the actual product is physical such as their variety
of coffee drinks, merchandises, and coffee beans. Finally, the augmented product consists of
the services they offer. For example, customers that usually enjoy a quick coffee run will be
able to get their coffees in a takeaway cup along with an edible straw. Besides that, customers
that like to linger around for a few hours whether it be for their leisure are welcomed to stay
at the café for as long as they like. They are provided with a rustic surrounding, soft jazz
music, unlimited and free Wi-Fi, comfortable armchairs, and air conditioner in every visit.
This makes all customers’ visit worthwhile and make them come back for more due to the
comfortability.

Product Identity

This is Coffee Bean’s overall image as depicted by the logo above. The stamp of logo can be
usually seen on their transparent takeaway cups, merchandises, paper goods, and also on their
plates and bowls that they serve out to customers who dine-in. However, a different colour
scheme to this logo may vary according to the countries. For example, the words on the logo
are usually white while the background is of a much darker colour.

Packaging
Withholding the promise to protect the earth, Coffee Bean and Tea Leaf has developed the
perfect formula to this packaging design that is certified compostable and most definitely
environmentally friendly. This modern take on packaging is a pod film innovated in
combination with nitrogen flushing. This preserves the pod and ensure that it is unaffected by
oxygen degradation. Before packaging the roasted beans, they are filtered and sun-dried so
that they can be kept safely in a 100% compostable film; used pods and films will be placed
in a municipal compost after consumption of contents. Packaging levels come in three levels;
the first, second, and third. When these bags of coffee are shipped out, they are required to
place the coffee bags into designated boxes as provided by the logistics company. After that,
smaller boxes are placed into larger ones for space optimization in the cargo so that it can be
transported from the roasting facility to the other countries.

Packaging Decision

The reasons for Coffee Bean’s packaging decision are as follows: for protection, cost, long-
term decision, and environmental issues. First off, protection of the coffee beans. The
packaging is able to maintain the quality of the beans and also to protect them from being
damaged during transportation so that they can arrive at the shops or to their customers
house in the best condition. Cost and long-term decision goes hand-in-hand in this aspect
because by using these compostable pods and films in the long-run, the company will be
able to save cost of the packaging materials that are usually much more expensive and
harmful to the environment which leads us to the next reason, environmental issues. Coffee
Bean and Tea Leaf are huge advocates of environmental health. This shows because they
are willing to change their packaging design and material to those that are more
environmentally friendly. Consumers that care about the environment would usually be
supporters of this brand because they think that the money, they pay serve a good cause.

Labelling
The labelling on the package of coffee beans on this brand would usually show consumers a
few distinctive features that are the processes, single origin or blend, region, elevation,
roast date, roast level, and species and variety. The packaging would have information on
the processing method of the coffee beans because it ultimately affects the taste and flavour
of the coffee. The three methods usually introduced would be washed, natural or honey
depending on the type of coffee bought. The single origin or blend aspect shows which
country it comes from. If the labelling says single origin, then it comes from a specified
country while a blend is a mixture of numerous coffees from different countries. Moreover,
the regional information of the coffees would be stated in front of the package along with
other information like the geographic region and farm name. This information helps
customers know where their coffees are coming from and how the taste differs from each
area. Another information that will be shown in the labelling is the elevation. This informs
the consumers of how high up the mountain is where the coffee is grown because the higher
the mountain, the higher the quality of the coffee. Furthermore, the roast date would also be
stated in the labelling and also along with other information like the roast level and
instructions on how to store and utilize the coffee beans. Last but not least, the species and
variety of coffees is of utmost importance when it comes to determining the best cup of
coffee brewed. In Coffee bean however, the most coffee available is usually of the Arabica
species which is considered the better quality when compared to other coffee beans.

Price
The external factors affecting logistic pricing are the economic and legal environment,
logistics infrastructure, customers and competitors. Firstly, when we talk about wanting to
expand this business globally, we are also talking about wanting to obtain profits from the
business. Hence, before making decisions we need to understand the countries’ economy
growth rate, exchange rate, FDI, and inflation. These elements are important when it comes
to determining the success rate of the business. Another factor is the legal environment of
the country where we are obliged to learn about their policies and regulations on logistics
services because every logistic services differ in each country. Customers play a huge role
in logistic pricing because we need to consider the manufacturers, receivers, and shippers
of the materials. The supply and demand are important in this aspect because only when
there is a demand for high-quality coffee beans, then the company would do their best to
ensure that there is a supply for it. The internal factor affecting logistic pricing is current
and existing strategies. This can be seen as marketing strategies that have already been
implemented in the market which can determine how well sales will progress. The company
would need to decide whether they want to come up with a fresh new plan or go along with
the old one that did well. Human resource and IT capacity are factors that we need to
consider before making decisions to expand the business globally. This is because we need
to ensure that we have the managerial skills appropriate for the country and HR policies
abiding by the rules. There must also be logistics software to make it easier to track items
and e-platforms to ensure that businesses can go online when physical stores are unable to
operate. Most importantly, we need to do research on our financial potentials to see if we
have adequate equity, financial resource, loan rate, and also if there are facilities available
for us to set up this business. Last but not least, we need to understand our scale of
business. For example, the companies’ mission, visions, targets, and structure while also
attempt to grow our business network overseas such as dealing with business partners and
customers of different languages and cultures. Besides that, we also need to consider
factors that will affect logistics pricing such as discounts for quantities, shipping costs
based on distance, weight, and size, labour costs, and finally quality of materials used in the
manufacturing process of the coffee beans.

Pricing Strategy
Coffee Bean and Tea Leaf religiously follow a competition-based pricing. This is because it
gives them a chance to increase their pricing if it has a distinctive competitive advantage as
compared to their competitors like Starbucks, Peet’s Coffee and Tea, and Dunkin’ Brands.
Coffee bean has a relatively lower following as compared to Starbucks but still is popular
among Gen Z, Gen Y, and millennials from age 18 to 40. It allows them to position their
brand at the price that targets high to middle income individuals. However, we can see that
they price their products below the price ceiling in order to slowly but steadily gain a strong
market share. In this case, the factor that influences consumers’ pricing decisions are
prestige objectives. This is because the Coffee Bean and Tea Leaf is a brand that can be
considered as expensive and held in high regard by most of their customers because they
perceive the product as having a premium value. This makes the brand a luxury item
because it is not a product or service that can be afforded every day by consumers with an
average income level.

As a consultant for Coffee Bean and Tea Leaf, I believe that coffee beans that are
transported and delivered every day to different destinations ought to have discounts. We
would have to choose a logistic company that would provide us discounts that are eligible
such as cash discounts. Cash discounts can be used as a method to ensure that the payment
of shipping and transportation costs are done quickly. For example, the logistic company
could promise a 5% discount on bills paid within 5 days of receiving the product.

In terms of logistics pricing, geographic pricing plays a significant role because customers
are based in different countries of the world, or they could be located at different regions in
a country. The logistic company that we decide on would ideally need to have certain
pricing strategies implemented that are F.O.B origin pricing, uniform delivered pricing, and
base point pricing. F.O.B pricing ensures that the purchaser of the products absorb any
miscellaneous freight costs. This method could be profitable for the company, but it may
prevent customers from purchasing coffee beans from us because the price would be too
expensive for them to afford. Customers might choose our competitors over us leaving us at
a loss. The uniform delivered pricing ensures that the seller is liable for the damages,
freight cost, and transport arrangement of the coffee beans. While this could mean that
there would be less profit for the company, it would ensure that most consumers pick our
company as an option for the supply for coffee beans. However, in the long run this is so
much more effective to the business. On the other hand, base point pricing means that the
seller is allowed to choose a base point and charge their customers the freight cost from the
base points regardless of where the product originated from. This pricing method is unfair
to some consumers while it could be extremely affordable for some. Depending on the type
of customers, the company might need to confirm their decisions on which type of pricing
strategy to implement.

Promotion
Instead of the using all the 5 types of promotion tools, the company should focus on a few
areas where I think they will do extremely well. The promotion tools that are highly
recommended for this type of business are advertising and sales promotion. First off,
advertising can be done on any platforms and this form of advertising can reach to all parts of
the world without needing to spend a lot of money. This is because the internet is a huge and
globally connected platform that allows the company to interact with their potential
customers albeit not directly. With advertising, the company can also ensure that the same
information is spread among mass media such as YouTube, Instagram Ads, and Facebook
Ads. This gives them a lot of exposure about their products and seem to target the mass
market rather than their actual target market. It could help them grow their following since
consumers need to be exposed to the products identity, packaging, labelling, and other
miscellaneous information before consumption. The other promotion tool that the company
should utilize is sales promotion. This is because this type of promotion is targeted toward
business customers, wholesalers, and final buyers. It allows them to come up with different
type of promotions to suit everyone’s needs such as business, wholesalers, and consumer
promotions that all differ from one another because the purpose of them procuring coffee
beans is different.

Place

The place simplifies business transactions between the logistics provider and the customer. In
this case, the location of the factory, warehouse, and also the customer will affect the
marketing logistics process. This could mean that the company will either multiply or
minimize their costs. As the hired consultant for Coffee Bean and Tea Leaf, I would strongly
advise that since global brand expansion is already costly, there might be other areas where
we can reduce and save costs for other purposes. For this reason, I would suggest that they
choose a location of the factory at a country where it is cheaper such as China, Indonesia,
Thailand, and Vietnam. The cost of placing inventory in a warehouse cannot be avoided
completely, however the cost can be reduced if the items are shipped out almost immediately
as soon as they are done with the manufacturing process.

The supply chain and value delivery network must consist of both upstream and downstream
activities because it highly involves the supply of resources where the coffee beans need to be
produced and to finally distribute the products to end users such as to consumers, business, or
wholesalers. The upstream activities of Coffee Bean would include growing beans,
harvesting them, removing their husks by hulling, drying the beans, then it goes through the
tedious method of bulking, blending, and finally roasting them. After completion of these
upstream activities to obtain the end product, they are packaged in compostable films and
pods so that they can be delivered safely for consumption use.

Last but not least, the company has to choose a distribution channel that is suitable in terms
of cost and efficiency. The type of intermediaries that would come into the picture with
responsibilities of collecting, organizing, importing, exporting, and transporting the coffee
beans to their final destinations. These are usually third-party companies that are required to
collect huge volumes of coffee beans so that they can supply the global demand for them.
The types of intermediaries that are best suited for this job are wholesalers and retailers. This
is because wholesalers are in charge of distributing the coffee beans to other intermediaries
which will speed up the marketing logistics process. However, they would first need to
purchase the coffee beans in order to resell them at a higher price. Examples of wholesaler
companies are Walmart and Amazon where anyone can find literally anything including
coffee beans of different brands. Retailers also get the job done by ensuring the distribution
of the coffee beans to end users, more specifically to consumers. They also must first buy the
coffee beans from the manufacturers in order to sell them at platforms like their retail stores
that amount to 1,000 physical stores worldwide.

In terms of coffee beans, there are two market structures. The first one being the consumer
market while the second one is the business market. The consumer market in the coffee bean
industry consists of two main indirect channels which are mainly the retailer channel and
wholesaler channel. This is because there are two intermediaries which are wholesalers and
retailers. The direct channel does not work in this concept because the manufacturers are
unable to deliver the products directly to the consumers without being cost and time efficient
which is why there is a need for wholesalers and retailers. On the other hand, in the business
market both the direct and indirect channels can be utilized. The direct channels would ensure
that the business buyer would collect their coffee beans at the manufacturer’s factory or get it
delivered to their company. Moreover, the indirect channels that include industrial distributor
channel and the agent/broker-industrial distributor channel involves business distributors,
agents, or brokers. These people act as intermediaries to transport the coffee beans to the final
business buyer so that they use it for business purposes such as the franchisor and franchisee
of the company.
3.0 Conclusion and Recommendation
3.1 Conclusion
In today's competitive marketplace, it is much more important than ever for companies to
adopt innovative integrated logistics operations to improve efficiency, cut costs, and boost
their competitive advantage. When a company decides to develop internationally, it should
research the market, dangers involved, and any operational inefficiencies that could make to
hit new markets. Logistics management must be a part of the administrative roles in the
situation of the organization offered. To succeed in new markets, the organization must seek
to engage all stakeholders. This entails embracing change and developing new systems. It is
necessary to integrate logistics across all entities in the supply chain, including consumers, to
manage logistics optimally. A return shipment label is part of the logistics process. Other than
ensuring stakeholders of timely delivery of needed products and services in the market, the
procedure should ideally stimulate future purchases. At the point of dispatch, it is prudent to
reduce environmental waste and ensure customers are appreciated in the best way possible.
When all participants in the supply chain understand their roles and are committed to working
together for the business's benefit, decision-making becomes easier.

3.2 Recommendation
The Coffee Bean and Tea Leaf should first reform its supply chain organization, streamlining
its structure and clarifying functional tasks more explicitly under that approach. The company
would then concentrate on lowering the cost of serving its outlets while enhancing supply
chain operations daily. Afterwards, they could create the groundwork for increased supply
chain capabilities in the future after these supply chain basics were securely under control.
Developing a defined logistics strategy will give flexibility to decision-making as well as
other management and operational procedures. A methodical approach will enable the
business to anticipate service disruptions and know how to respond to maintain effective
service levels. In both the short and long term, a good strategy can be effective.
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