Question CASE 9-1 Young Again Pharmaceuticals

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 product has been dubbed “Twentysomething in a Bottle” by the media. Demand is expected 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. Crandall 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 shipments in May to the retailers’ distribution
centers. The product is high value, somewhat 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:
•
“If shipments are late or incomplete, retailers will penalize us with vendor chargebacks.
You know they will hit us with small fines for delivery mistakes.”
•
“I’m worried about shipment delays or freight loss from hurricanes in the Atlantic
Ocean.”
•
“You’ve got to consider temperature sensitivity issues. If the product freezes, we won’t be
able to sell it.”
•
“I’ve been reading about all the piracy problems experienced by ocean carriers. You
know, a 20-foot container of our product has a retail value of nearly $275,000.”
•
“I’m more concerned about theft of individual cases at ports and while the product is on
the road.”
•
“We’re looking at border delays and Customs fines if we don’t properly document and
mark our freight.”
•
“Our brand image will take major damage if the product gets into unauthorized
distribution channels due to theft or misdirected deliveries.”
•
“The company sustainability push has led to reduced packaging and biodegradable
packing materials. If the cartons get wet or bounced around, we’re going to end up with a lot of
damaged, unsellable product.”
•
“Those major East Coast ports can get very congested during peak shipping season. That
will cause delays.”
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 remote, Crandall thought
that it would be wise to evaluate each one. His new concern became how to conduct an effective
risk assessment.
CASE QUESTIONS
1.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.