Midwest Ag Processing (MAP)

2237 Words5 Pages

Midwest Ag Processing (MAP) is a small corn and soybean processor located in Southeastern Iowa. They provide high quality fructose corn syrup, corn starch, and soybean oils that large processing plants are unable to offer. Currently, issues with meeting shipment deadlines have been emerging. Shipments have been arriving to the customer days after the due date. This is happening because there is an increase in truck and rail congestion for biofuels. Causing transportation costs to rise, this congestion is creating an increased demand for containers and higher fuel costs. The company founder, Stanley, sees that there are many issues with his transportation network. Stanley sends his sales manager, Mark, and supply chain manager, Mary, to the Midwest Transportation Symposium to learn about current transportation issues. Two weeks later, while discussing the issues, Mary shared an idea of investing in Manly Terminal, an ethanol and multi-product storage and reload facility from North Central Iowa. This would help MAP reduce transportation costs and improve their service of on time delivery of biofuels. Manly Terminal LLC is the premier regional transportation hub for biofuels. It is located in the middle of the Corn Belt where ninety-seven percent of total ethanol production is located. The high quality service that Manly provides would be beneficial to MAP’s business. It has access to all Class I railroads, which have the highest annual operating revenues. Manly Terminal also offers is the storage capacity of twenty million gallons of liquid ethanol. This allows ethanol to be purchased, sold, and traded while still in holding tanks. There are four key benefits of partnering with Manly Termina... ... middle of paper ... ... way to do this is by partnering with Manly Terminal. By switching to a rail system MAP would now be able to use unit-train quantities when shipping corn and soybeans. This will reduce transportation costs and bring more reliability and productivity. MAP is in a unique position to make substantial impacts on their services offered, as biofuels and renewable energy continues to expand. MAP can retain customers and also grow sales, by having high customer satisfaction. A competitive advantage will be able to be achieved, but in order to do this they need to start by using Manly Terminal for storage and transportation of their inventory. This will create better customer service, because Manly Terminal will offer more efficient storage and transportation. MAP will be able to continue to expand there business and become an even more successful company.

Open Document