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CASE 9-1 Young Again Pharmaceuticals Cliff Crandall, senior director of transportation for Young Again Pharmaceuticals (YAP), is gearing up for his company’s most critical product rollout in more than a decade. YAP has developed a breakthrough liquid suspension that reverses the ageing process for anyone over 35 years of age. Available only by prescription, the new pro- duct has been dubbed “Twenty-something in a Bottle” by the media. Demand is ex- pected to be very high despite the outlandish price tag of $395 for a month’s supply.
The product is being manufactured in YAP’s San Juan, Puerto Rico laboratory and will be distributed to major retail pharmacies in the United States and Canada. Cran- dall is responsible for selecting the mode and contracting with carriers to deliver the product. He is concerned about the safe and timely delivery of the initial product ship- ments in May to the retailers’ distribution centers. The product is high value, some- what fragile, and of interest to thieves. Some product, stolen from the laboratory, has already appeared on auction websites.
In an effort to make effective transportation decisions and minimize YAP’s risks, Crandall decided to hold a brainstorming session with his logistics team before signing any carrier contracts. The discussion of key risks produced the following list of concerns:
By the time the meeting was over, Crandall realized that he needed to spend some time looking into these issues. While he was pretty sure that some problems were re- mote, Crandall thought that it would be wise to evaluate each one. His new concern be- came how to conduct an effective risk assessment.
Young Again Pharmaceuticals Case 9 1
Length: 2 pages (622 Words)
|Advanced Manifest regulations|
|Mode||Inbound freight||Outbound Freight|
|Air||3 hours prior to arrival in U.S. or “wheels up” areas which are nearby to the port||4 hours prior to arrival in U.S. or “wheels up” from areas close to the port|
|Ocean||12 hours prior to lading of the products at the port.||24 hours prior to departure from U.S. port.|
|Rail||3 hours prior to arrival at a U.S. port.||3 hours prior to the arrival of the train at the border|
|Road||FAST: 30 minutes prior to arrival in U.S. Non-FAST: 1 hour prior to arrival at the destination||1 hour prior to the arrival of the truck at the U.S boarder|
The primary risk is the damage of goods due to shaking of the boxes during transport. This mostly occurs with the trucks, which are not qualified for the transport of the delicate products. If the products are shaken and the bottles hit each other in the boxes, they will and up breaking thus bringing losses to the company (Mark 65).