**Expanded Distribution & Supply Chain Strategy**
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### **Local Suppliers**
**1. Vegetables (Addis Mercato Vendors)**
- **Key Partners**:
- **GreenLeaf Farms**: Weekly supply of 500kg tomatoes, onions, and bell peppers.
- **SpiceMaster Co-op**: 200kg/month of fresh basil and *berbere* spice blend.
- **Terms**:
- **Payment**: 30-day credit terms to manage cash flow.
- **Quality Control**: Daily inspections for freshness; rejections under 5% defect rate.
- **Sustainability**: Partner with urban farming initiatives to reduce transport emissions.
**2. Dairy (Awash Milk)**
- **Capacity**: 1,000kg/week of fresh mozzarella and yogurt.
- **Backup Supplier**: *Lakeside Dairy* (Hawassa) for +20% cost during peak demand.
- **Customization**: Low-sodium mozzarella tailored for wood-fired cooking.
**3. Flour (Bahir Dar Farms)**
- **Blend Ratio**: 30% *teff* (gluten-free) + 70% wheat for optimal crust texture.
- **Logistics**: Bi-weekly deliveries via refrigerated trucks (cost: 10,000 ETB/month).
- **Community Impact**: Supports 150 smallholder farmers through fixed-price contracts.
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### **Imports**
**1. Specialty Ingredients**
- **Olive Oil**: Sourced from *Andalusia Olive Co.* (Spain) at $5/L, shipped monthly via Djibouti.
- **Pepperoni**: Contract with *Tuscan Meats* (Italy), pre-sliced for consistency ($8/kg).
- **Truffle Oil**: Air-freighted quarterly to maintain freshness ($50/100ml).
**2. Logistics & Compliance**
- **Lead Time**: 6–8 weeks by sea; 10 days by air (emergency orders).
- **Customs**: Partner with *Djibouti Logistics Hub* to clear goods in <72 hours.
- **Tariff Mitigation**: Utilize Ethiopia’s “Manufacturing Inputs Duty Exemption” for food imports.
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### **Delivery Network**
**1. In-House Riders**
- **Fleet**: 10 electric bikes (purchased via GreenMove Ethiopia subsidy).
- **Coverage**: 5km radius from Bole store; 45-minute delivery guarantee.
- **Cost**: 30 ETB/delivery (vs. 50 ETB via third-party).
**2. Deliver Addis Partnership**
- **Integration**: Real-time POS syncing; 15% commission on orders.
- **Peak Handling**: Dedicated Boaz riders during lunch/dinner rushes.
**3. Quality Assurance**
- **Packaging**: Insulated boxes with cellulose lining (biodegradable).
- **Cold Chain**: Portable warmers for cheese; GPS-tracked delivery times.
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### **Risk Management**
| **Risk** | **Mitigation Strategy** |
|---------------------------|--------------------------------------------------|
| Supplier Shortages | Buffer stock (7-day supply for critical items). |
| Djibouti Port Delays | Diversify to Berbera Port (Somaliland) for 20% of imports. |
| Currency Fluctuations | Hedge 50% of USD exposure via forward contracts. |
| Power Outages | Solar-powered cold storage at central kitchen. |
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### **Technology Integration**
- **Inventory Software**: *TradeGecko* for real-time tracking of 500+ SKUs.
- **Delivery Analytics**: Heat maps of order hotspots to optimize rider routes.
- **Blockchain Pilot**: Trace *teff* from Bahir Dar farms to customer plate (Year 2).
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### **Sustainability Metrics**
| **Initiative** | **Impact** |
|---------------------------|------------------------------------------|
| Local Sourcing (70%) | Reduces CO2 by 40% vs. full imports. |
| Electric Delivery Fleet | Cuts emissions by 15 tons CO2/year. |
| Compostable Packaging | Diverts 10,000+ plastic containers/year. |
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### **Cost-Benefit Analysis**
| **Component** | **Cost (ETB/month)** | **Savings/Benefit** |
|----------------------|----------------------|-----------------------------------|
| Local Vegetables | 150,000 | 25% cheaper than imports. |
| In-House Delivery | 90,000 | 40% cost reduction vs. third-party.|
| Solar Cold Storage | 50,000 | 30% lower energy costs. |
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**Strategic Advantage**:
This supply chain design ensures **quality control**, **cost efficiency**, and **scalability**. By balancing local sourcing with strategic imports, Boaz minimizes risks while supporting Ethiopian agriculture. The tech-driven delivery network and sustainability focus align with global trends, positioning the franchise as a leader in Ethiopia’s evolving F&B sector. 🚚🌱