Question: Garden Birds Ltd . ( GB ) is a small niche provider of products for garden birds including seeds, feeders and associated products. One of

Garden Birds Ltd.(GB) is a small niche provider of products for garden
birds including seeds, feeders and associated products. One of the best-
selling products is sunflower seed hearts. They are sold in 1kg,3kg,5kg
and 10kg packs to 176 garden centres, 25 pet shops, 2 supermarket chains
and direct to the public via the internet.The seeds are procured from China,
packed in 50kg sacks delivered in minimum 11-tonne loads. The lead time
from order to delivery to GB is quoted at 43 calendar days. GB use an agent
to manage the freight forwarding to the GB packing and distribution plant.
GB break the sacks down into four different-sized packs based upon the
production forecast which is firmed up at the beginning of each month.
Demand is variable, dependent upon the route to market and the season.
Overall, it can vary from 5 to 20 tonnes per month.The maximum storage
capacity of the GB packing and distribution plant is 24 tonnes of finished
products and 26 tonnes of the 50kg sacks. Garden centres and pet shops
order weekly, supermarkets forecast weekly but firm up at 6pm the day
before delivery and products are on a sale-or-return basis. Customers
ordering via the internet before 3pm will have their products dispatched
the same day.
Delivery to local garden centres and pet shops is undertaken by GBs own
transport and for distant outlets a national carrier is used. For supermarket
deliveries, and returns, a different national carrier is used and for direct to
public sales the Royal Mail parcel service is used.The company has
experienced a number of issues relating to its operations activities.
Namely:
can you address this issue
large volume returns from supermarkets as a new seasons products are
substituted in the valuable gondola end displays within the retailer.

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