Black Sands Operations Plan

Collection
Design Strategy (MBA) | Design Division

Course
Fall 2016Operations & SystemsGray DoughertyDSMBA-620-02
Final project
Student(s)
Adam Cote, Cynthia Randolph, Sharareh Shahfari, Riley Moynes, Adam Cote
Description
Final operations plan for Black Sands

Black Sands is a successful 17 month old brewpub located in the Lower Haight district of San Francisco. At this stage, they are eager to grow their business through high-volume beer production and distribution. The brewpub alone currently pulls in 80% of their revenue from food, while the remaining 20% of their revenue is from the sale of beer.  Black Sands directors, Robert Patterson and Cole Emde, hope to invert these metrics through substantially increasing their beer production, through contract brewing and potentially a new facility, and distributing their beer to new wholesale accounts.

Black Sands has differentiated itself in the saturated Bay Area craft beer market by specializing in brewing SMASH beer, which is single malt single hops. This gives them a competitive advantage both because SMASH is a unique approach, and because there is much more leeway in the brewing of SMASH. Cole, the master brewer, is able to be flexible and use whatever is on hand. In addition, Robert Patterson has many established relationships in this market because of his other businesses. 

To optimize production, inventory, and transportation, Black Sands will deploy a scalable distribution model that includes a sales strategy and logistics plan. Recently, Black Sands secured their wholesale distribution license and plan to begin wholesale distribution in January 2017. As a result, they require an operations plan to serve their initial pre-secured accounts. To fulfill these orders, they will be contract brewing with either Fort Point or Magnolia Brewing Company. This will position them to be able to successfully expand their production capacity, as well as acquire additional new accounts. 

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