The paper-based sensor patches will be distributed to customers through pharmacies and e-commerce vendors. The sensor patches will be produced in bulk in factories and supplied to resellers that will distribute them to the end consumers. The logistical process will be managed using a supply chain monitoring system between specific endpoints and GPS monitoring when on long transits. The paper-based sensor patches will be manufactured locally using robotics and local labor and distributed to resellers and pharmacies.
Source of Materials
Some materials will be sourced internationally from such countries as Taiwan, while others will be obtained locally. Approximately $500,000 will be required for the initial batch of sensor patches.
Whether They Will Be Purchased or Manufactured
The materials will be manufactured locally using such raw materials as plastic, steel, glass, paper, and adhesive materials. The only components that will be purchased are the processors for the sensor patches from the Taiwan Semiconductor Manufacturing Company (TSMC, 2022). The materials will be obtained through local manufacturing and importation of certain silicon-based parts.
Estimated Labor Needed
Automation will be used extensively throughout the entire manufacturing process. The machines used in the manufacturing process will be obtained from RobotWorx (RobotWorx, n.d.). The only labor required will be in packaging and loading or unloading the items used in the factory. Since the factory only requires loaders and packagers, the labor requirement will be initially low, from 20 to 50 workers. The 50 workers will be paid $15 per hour, working 40 hours a week. Thus, they will be, thus, paid $1.56 million initially. The management should also allocate $70,000 for a supervisor and $100,000 for two security guards working shifts. The total labor cost in the first year will be $1.73 million.
The Logistics in Terms of Transportation or Shipping
The products will be transported as soon as orders are filled to the buyers in the case of pharmacists and sellers of medical supplies. In the case of online reselling, the products will be stored in the warehouse in a central location for easy shipping and then distributed to buyers as required by those resellers in bulk orders.
The sensor patches will be extensively marketed before they are put in stores. Thus, a promotion or advertising budget of $2 million is required to market the sensor patches online through Facebook and YouTube, offline posters, and radio and television commercials.
The business will be located in the US, near the Mississippi on the western side of the river to facilitate quick transportation via the riverine vessels. Accordingly, property worth around $2 million will be require for the location of the factory. The factory will be in Mississippi state as well as the headquarters for the sensor patch business division.
Technology Requirements Needed
Robots are required for this project to succeed, specifically specialized manufacturing robots. They will cost approximately $1 million for twenty robots involved in assembling the manufactured components and moving the products down the assembly lines.
Length of the Period before Sales Begin
After obtaining the necessary capital, it should take at most two months to get the products to the market. A month will be required to procure the land and set up the factory. The other month will be to obtain the machinery and hire workers to start work at the plant.
The materials will be produced in the US except for the chips, which will be sourced from Taiwan. The manufacturing will be done in the middle of the US, in Mississippi. The materials will cost $500,000, labor will cost $1.73 million, marketing will cost $2 million, and the robots will cost $1 million. The total cost is $5.23 million. The production process will start when this sum is availed. About two months after obtaining the capital, the first products will be shipped to the initial buyers.