Tea Logistics Services, Inc.

TRANSPORTATION MANAGEMENT – DOMESTIC AND INTERNATIONAL

CASE STUDY: -TEA LOGISTICS SERVICES, INC.

Prepared by:

Kamalpreet Kaur (0718829), Ramandeep Kaur (0715013), Binu George (0715043),

Eldho Kuriakose (0715019)

Supply Chain Management

St Clair College, Windsor, Ontario

Date:

January 15, 2019

IBM 301: 004 St Clair College, Windsor, Ontario

Instructor: Rebecca Westlake

1. Q. What opportunities do you see for TEA to expand globally, specifically to South Africa?

Ans: - Some of the major opportunities for the company Tea logistics to expand there business globally, specifically to South Africa are:

• Tea Logistics gets the low labour cost in South Africa which is crucial to increase the business and to diminish the cost or to increase profit.
• Tea Logistics gets the financial support from Chinese in building the infrastructure and the assembly plants from China in South Africa.
• Moreover, Tea Logistics also gets an opportunity to handle the business outside United States.
• Due to increase in competition, Tea Logistics also focused more on their quality.

1. Q. What challenges do you see facing TEA in making this operating expansion?

Ans: - According to this case study, Systa was found as one of the world leader, because of the quality of their products. As a competitor Tea logistics faced the pressure to increase the margin due to the global competition and had to increase their business globally.  Tea Logistics also faced the challenges such as security issues, political instability, and lack of transport infrastructure, unnecessarily complex border and custom controls. Due to lesser security in South Africa, the company did not get a good supplier and also there where issues regarding money loss or theft.