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Logistics Deals and the Recent Snowman Agreement

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Snowman and Ikea have a Trade Deal.

Snowman Ikea MergerIkea is foraying farther into India and because of that are pushing for their restaurant chain to supply more income than it does on the national average. Currently across the nations it serves, their restaurant business only applies for ~5.5% of their global revenue, but for India, they are hoping to have a 10% contribution.

To do this, they need to streamline their logistics department and manage their in-store restaurants better. Enter a partnership with Snowman Logistics who have previously only been focusing on shipping and maintaining quick times.

Now they are responsible for managing and overseeing ideal partnerships and expedited trade routes for Ikea in India. This is the first time that Snowman has to agree to services like this before.

Why this is Beneficial for Ikea and Snowman

Currently, the model that Ikea has used works half as well as they want it to in India. Snowman has never done this extent of their job before, and they are in-extent managing how the store’s profits become recorded so far.

So why is this a bigger risk for Snowman than Ikea?

Snowman was known for their cold-storage transportation. They only work with and manage to transfer products to a set degree.

Now Ikea is looking to them to manage more than that by including non-frozen storage as well as dealing with a huge market at the same time.

Ikea has a lot of faith in Snowman for this, but depending on how it turns out could result in losses for Ikea, but the blame would reside on Snowman moreso. They are hinging on this expedited service to ensure demands met for people who are ordering products.

Will snowman be able to provide the excellent service on this large of a scale and if so, how will this translate to moving into the Chinese market?


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