Sponsor:

CODESIN

Research Team:

Rene Villalobos, Cesar Meneses, Hector Flores

Universities Involved:

Arizona State University

Start Date:

03/01/09

End Date:

11/30/09

Summary:

The objective of this project is to perform an analysis of the Dallas market (industry characteristics and market size), determine the optimal geographic location for the redistribution center for the Distribution of Fresh Produce from the Mexican state of Sinaloa in Dallas, TX, and determine the optimal implementation strategy.
Sinaloa is one of the main suppliers of fresh produce in the US and provides roughly half the fresh produce consumed during the winter. Up to know the traditional way of doing business has been through a lot of players which reduces the producers’ profit margin drastically even though they provide the most value and assume the higher risk. The establishment of logistic distribution platforms in the U.S. will integrate the producer vertically in the supply chain, in contrast with their current practice of selling FOB at the border.
* The implementation of a redistribution center is a very profitable investment
* Dallas has a strong market potential
* A strategic location of the redistribution center minimizes transportation costs
* Best implementation strategy
o Low volume : Outsource logistics activities
o Mid-level volume : Rent facility
o High volume : Construct warehouse