Student Name
MBA-5016 A3
Capella University
Prof.
December 17, 2025
Wild Dog Coffee Company Supply Chain Management Plan gives the strategy to achieve the movement of goods, services, and information within the company operations as it prepares to go through its expansion.
Supply Chain Management Plan
With a company that strives to ensure high quality of its products, customer satisfaction and minimizing costs, a proper supply chain is important in achieving the targets. This strategy will compare various supply chain designs, suggest an optimal supply chain design, and discuss the most important logistics aspects that can facilitate the efficiency of operations and flexibility. The solution supply chain strategies will guarantee that the current and new destinations can operate in a seamless way so that they can provide a stable supply of quality products to satisfy customer demand.
Supply Chain Analysis for Wild Dog Coffee Company
Wild Dog Coffee Company is a local based business company and plans to start up another point of operation. As the business was built upon the core product of espresso drinks, it was necessary to have an accurate supply chain to maintain the quality of the offered products and enable timely delivery (Lavorato & Piedepalumbo, 2023). The coffee shop is dependent on certain inputs such as beans used to prepare the espresso, milk, and flavoring in the beverage, paper cups, lids, and sleeves.
There is a need to analyze the supply chain to make sure that both locations can run well without hiccups in the movement of vital ingredients, especially given that an out-of-stock scenario would lead to the shutdown of the business, especially about the espresso beans. Also, the espresso machines are serviced two times every month, and the outsourced service provider has to coordinate with the maintenance service to maintain the machines and guarantee their smooth operations.
Centralized Supply Chain
Under the centralized supply chain model, procurement and logistics functions are managed at one central system. A centralized supply chain consolidated procurement and inventory management at a single location (Vaka, 2024). In the case of Wild Dog Coffee Company, it would entail the company contracting all its inputs, including their espresso beans, milk and other inputs to be one single supplier or warehouse. The two locations would have all their stocks concentrated at a central location and delivered to the two shops as required.
This model also supports the factor of economies of scale since the cost of goods is possible to be low with volume buying. Also, the maintenance of inventory is made easier and the stocks are easily monitored, hence items get stocked in time. The problem with this is that in case the central supply system is affected, for example, a delay in shipment or running out of some essential products like espresso beans, the two locations will be impacted operationally, such as forced closures until new stock is received.
Decentralized Supply Chain
With a decentralized supply chain, the supply chain is operated in an independent way, whereby each destination manages its stock and supply. A decentralized supply chain, distributed procurement, and inventory management across multiple locations for greater flexibility (Kumar & Selvaprabhu, 2023). In the case of Wild Dog Coffee Company, every coffee shop would comprise its own inventory, which includes espresso beans, milk, and other supplies that they need, thus obtaining these supplies directly, either by visiting the local suppliers or warehouses.
The merit of this model is that the individual locations can respond fast to the local demand and keep the stock levels according to the real-time requirements. Moreover, the interruption in supply in one place will not affect the other. It could also be more flexible due to the decentralized model, whereby each place can tailor its menu or products to suit the preferences of the customers. Nonetheless, it is possible that the procurement costs and logistical complexity can be higher, since each shop would have to independently operate its stocks and would have to develop relations with suppliers.
Figure 1: Centralized Supply Chain
Inputs: Espresso beans, milk, flavoring, cups, lids, sleeves, barista time, maintenance services.
Outputs: Espresso beverages, waste materials (empty containers, used filters).
Figure 2: Decentralized Supply Chain
Inputs: Espresso beans, milk, flavoring, cups, lids, sleeves, barista time, maintenance services.
Outputs: Espresso beverages, waste materials (empty containers, used filters).
In a decision of the centralized or decentralized supply chain of Wild Dog Coffee Company, there are various factors that must be looked at. A centralized supply chain can result in saving money and easier management of the inventory through centralization of procurement activities (Petersen et al., 2020). The threat of supply type outs to both destinations is, however, a profound apprehension, particularly because the shortage of espresso beans would result in a business closure.
Decentralized supply chain, however, is more flexible and resilient since the individual locations could operate their supply chains effectively, and there would be no risk of closing down the business because of the lack of supplies. Nonetheless, it can be in conjunction with higher procurement expenses and logistics. It will ultimately be a matter of the ability of the company to handle logistics and inventory in both of the locations and its risk tolerance in regards to the potential risks in the supply chain.
Supply Chain and Logistics Analysis
As applied to Wild Dog Coffee Company, supply chain and logistics interconnect at various decisive points, especially as far as sourcing and management of inventory and delivery are concerned. The first cross over is on the time when the company orders espresso beans, milk, and other products. These products were transported to the coffee shop locations in good time, and the logistics management ensured that the inventory was supplied on time and kept in the right place at the central warehouse or at local vendors (Vlachos et al., 2024).
Also, the systems of inventory monitoring trace the level of stock availability and the logistics department’s orders and delivery process, such that the products are not exhausted before their replenishment. The other crossover point is in the monthly cleaning and maintenance of espresso machines, where logistical support is needed to schedule and organize the services of the outsourced maintenance provider. Finally, the issue of logistics is vital in the management of the movement of items between the central warehouse to the two points of sale, the coffee shops, in order to get seamless operation in the two locations with no disruptions.
Management Tools
A number of management tools can be used to control the product and service distribution. Among them is the just-in-time (JIT) inventory management that will make sure that the coffee shop only gets the stock when it is required, minimizing inventory holding costs and maximizing the risk of not wasting it. This would be especially useful in the case of spoilable products such as milk. The other useful model was economic order quantity (EOQ), which assisted in determining the optimal quantity of espresso beans to order, allowing for the minimum cost involved in order management (Sukosyah et al., 2023).
Inventory movements can also be monitored to track inventory in real time using supply chain management (SCM) software hence enabling managers to change the order quantity and delivery schedule as the real sales data are available. The use of vendor-managed inventory (VMI) can also be used to optimize the process by letting the suppliers maintain the inventory within the Wild Dog Coffee Company without overstocking. Lastly, the distribution requirements Planning (DRP) system could be utilized to predict demand at both destinations to help in aligning the schedule of product delivery with customer demand, therefore eliminating shortages or oversupply of goods.
Assessing Bottlenecks
Examining the supply chain bottlenecks of Wild Dog Coffee Company reveals areas where inefficiencies occur, impacting the cost and quality of service. A possible bottleneck was in sourcing and transportation of the espresso beans, where delays occurred in the management of inventory and lead times of the suppliers (Zisimopoulos, 2022). Because the espresso beans are shipped to the company in seven days, any inefficiencies in deliveries would cause stockouts, which would have direct implications on the availability of the company to satisfy customers and even close business.
To overcome this, just-in-time (JIT) inventory control was implemented, where only the necessary inventory is ordered, minimizing stocks and thus lowering the chances of overstocking, but at the expense of having a trustworthy and timely supplier. The other bottleneck is the maintenance of espresso machines. The outsourced maintenance every month might be disruptive when there is a conflict in scheduling or in case of delays by the service provider. To avoid this, it resorts to total productive maintenance (TPM) that incorporates the routine maintenance activities in the day-to-day operations to minimize the reliance on the services of third parties and maximize the efficiency of the activities.
Also, shipping delays in the logistics of getting the commodity into the individual locations introduce bottlenecks, particularly in cases where the demand of the commodity at one place is higher as compared to supply. Distribution requirements planning (DRP) was one useful tool that was used to counter this problem, as it assisted in the prediction of demand in all locations and the optimization of inventory distribution (Koripalli, 2025).
Finally, ineffective inventory controls and management bring about surplus inventory or stockouts. The introduction of supply chain management (SCM) software will be able to track the amount of stock in real-time and demand predictions, as well managers can take preemptive action to simplify the circulation of merchandise. With the tools, Wild Dog Coffee will be in a position to reduce supply chain bottlenecks and enhance operations.
Supply Chain and Logistics Value
Supply chain and logistics are essential in generating value because of the efficiency in delivering products and services to customers at the right time, quality, and time. In the case of Wild Dog Coffee Company, the supply chain must be lean so that all ingredients such as espresso beans, milk, and flavor agents are in place when required, and regional hitches are eliminated. Of importance in this situation, logistics is involved in the delivery of the items on time to the two locations. Inventory control will help the company to reduce wastage and expenses as only fresh products are utilized, which directly leads to the improvement of the quality of products. just-in-time (JIT) inventory was one of the key business strategies because it only had all the supplies ordered and delivered at the point of need (Yang et al., 2021).
This decreases the holding costs and stockout risks and enhances service consistency and customer satisfaction. The other approach is vendor-managed inventory (VMI) through which the suppliers can observe and control the inventory levels at the Wild Dog coffee outlets to maintain inventory in balance with customer demand. This makes the company less accountable in keeping the supply levels active in order to operate smoothly.
Additionally, the supply chain management (SCM) software has the ability to ensure there is a real time visibility of the stock, client demand and sales trends, which can enable managers to make sound decisions. This helps the company to pursue the high-quality service through having the right quantity of stock constantly on hand. There were also distribution requirements planning (DRP) that distributed stock effectively amongst locations so that customer service was maintained, and delays and shortages were avoided (PlanetTogether, 2025). Wild Dog Coffee Company will be able to realize its quality and customer service goals by synchronizing supply chain and logistics supportive functions with business strategies.
Recommended Supply Chain Design for Wild Dog Coffee Company
In the case of Wild Dog Coffee Company, a hybrid supply chain design will be advisable with integration of centralized and decentralized supply chain models. Such a design enabled the company to experience centralized procurement of some of the most required ingredients, such as espresso beans and milk, although it had local control over inventory management at the individual coffee shops (Yang et al., 2021).
The centralisation of procurement allows Wild Dog Coffee to enjoy the benefits of buying in bulk and reduce costs so as to have uniformity in the quality of the essential ingredients. But decentralized inventory control provides every location with the ability to respond swiftly to the local demand and order inventory following current demands. The compromise nature of this hybrid strategy will promote the aim of the company to provide high quality products without compromising the costs and satisfaction of the customers though the flexibility it offers in its operations.
Assumptions
The hybrid supply chain design has a number of assumptions that have been made to develop it. Firstly, it is presumed that the company has access to credible suppliers that will provide high quality of espresso beans, milk and any other ingredients with uniformity between the two places. Second, both places are assumed to have sufficient storage space so as to tackle the local inventory requirements without overstocking. Third, Wild Dog Coffee should operate an efficient system of managing inventory like supply chain management (SCM) software to monitor the level of inventory and demand patterns.
Fourth, Transportation logistics also had to be effective in order to deliver on time to the two coffee shop locations, on the part of the central supplier (Zisimopoulos, 2022). Lastly, it is believed that the company will be ready to invest in technology to provide real-time inventory tracking in order to maximize the decisions made and eliminate chances of running out of inventory. With these assumptions, the supply chain design would be capable of functioning effectively and in accordance with the objectives of the business.
Conclusion
Supply Chain Management Plan of Wild Dog Coffee Company has highlighted the need to have an organized supply chain that will facilitate the growth of the business and also sustain high quality service. A hybrid supply chain model which involves centralization of procurement and decentralization of inventory management will enable the company to attain matrix economies of scale, flexibility and consistency at the two locations.
One of the points that can also be identified in the plan is the demands of effective suppliers, inventory management systems, and efficient logistics to make the operations smooth. Using these strategies, Wild Dog Coffee Company will be able to reduce the risks of expansion and achieve customer expectations and supply chain performance.
References for MBA FPX 5016 Assessment 3
Koripalli, V., (2025, November 17). Distribution Requirement Planning: A Complete Guide for Apparel Brands – Uphance. Uphance. https://www.uphance.com/blog/distribution-requirement-planning/
Kumar, V., & Selvaprabhu, P. (2023). An examination of distributed and decentralized systems for trustworthy control of supply chains. IEEE Access, 11, 137025–137052. https://doi.org/10.1109/access.2023.3338739
Lavorato, D., & Piedepalumbo, P. (2023). How smart technologies affect the decision-making and control system of food and beverage companies: A case study. Sustainability, 15(5), 4292. https://doi.org/10.3390/su15054292
Petersen, O. H., Jensen, M. D., & Bhatti, Y. (2020). The effect of procurement centralization on government purchasing prices: Evidence from a field experiment. International Public Management Journal, 25(1), 1–19. https://doi.org/10.1080/10967494.2020.1787278
PlanetTogether. (2025, July). Advantages of Distribution Requirements Planning (DRP)| PlanetTogether. Planettogether.com; PlanetTogether. https://www.planettogether.com/aps-trends/advantages-of-distribution-requirements-planning-drp
Sukosyah, A., Djoko Koestiono, Heptari Elita Dewi, & Rusli, K. (2023). Analysis of coffee raw material inventory control using the EOQ Method in SME Sido Luhur. Habitat, 34(1), 96–104. https://doi.org/10.21776/ub.habitat.2023.034.1.9
Vaka, D. K. (2024). Integrating inventory management and distribution: A holistic supply chain strategy. International Journal of Managing Value and Supply Chains, 15(2), 13–23. https://doi.org/10.5121/ijmvsc.2024.15202
Vlachos, I., Apostolos, Z., & Tsoulfas, G. T. (2024). Digitisation of franchising supply chain impact on franchisor performance: A longitudinal case study of a coffee retail chain. International Journal of Physical Distribution & Logistics Management, 54(9). https://doi.org/10.1108/ijpdlm-05-2023-0153
Yang, J., Xie, H., Yu, G., & Liu, M. (2021). Achieving a just–in–time supply chain: The role of supply chain intelligence. International Journal of Production Economics, 231(107878), 107878. https://doi.org/10.1016/j.ijpe.2020.107878
Zisimopoulos, A. (2022). Coffee supply chain performance improvement: A Case Study of Digital Transformation. https://ieomsociety.org/proceedings/2022istanbul/293.pdf
