This study analyzes the transportation of goods from one country to another and highlights trade policies and challenges in international supply chain management. It also provides ways to overcome these challenges and improve the transportation process.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: INTERNATIONAL SUPPLY CHAIN MANAGEMENT INTERNATIONAL SUPPLY CHAIN MANAGEMENT Name of Student Name of the University Author Note
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1INTERNATIONAL SUPPLY CHAIN MANAGEMENT Executive Summary The main objective of the study is to analyze the transportation of goods from one country to another. This study has highlighted the trade policies of both the countries between which the transport of the goods is to take place. There are a number of challenges when transporting the goods using ships such as cargo damage problems due to poor packaging and others. The ways in which these can be overcome has also been mentioned in the study. The transport can also be carried out in a better way using other modes of transportation.
2INTERNATIONAL SUPPLY CHAIN MANAGEMENT Table of Contents Introduction................................................................................................................................3 International Supply of fruits from China to Sri Lanka through perishable cargo shipment.....3 The best ways of supplying the same.........................................................................................5 Challenges that can arise while supplying the goods from China to Sri Lanka.........................6 It becomes difficult to track the transportation of products...................................................6 Lack of proper packaging of the goods to be delivered from one place to another...............6 Problems of maintaining quality during transport through temperature controlled storage spaces.....................................................................................................................................6 Time taking process...............................................................................................................6 Penalty for overweight cargos................................................................................................7 Custom clearance problems at the shipping docks................................................................7 Ways to overcome these challenges...........................................................................................7 Using internet of things by cargo freights..............................................................................7 Automation of inventory management...................................................................................8 Automation of task management...........................................................................................8 Use of big data analytics........................................................................................................8 Maintaining transparency of operations through IT systems.................................................8 Automation of the logistics system........................................................................................9 Conclusion..................................................................................................................................9 References................................................................................................................................10
3INTERNATIONAL SUPPLY CHAIN MANAGEMENT Introduction Supply chain management is the process of managing the flow of the goods, their procurement, looking after the warehouse facilities, their conversion and managing all other logistics activities in order to provide timely delivery to the customers (Christopher, 2016). SCM includes maintaining proper relationships with various partners of the supply chain such as retailers, wholesalers and others. International supply chain management is the process of carrying out the activities involved in the SCM internationally to meet the needs of the customersfrom different countries(Mangan, Lalwani& Lalwani, 2016). International logistics is the process of properly maintaining the activities of the goods flow including the raw material, work in progress and finished goods from a point of supply to a point of consumption whether it is within the country or outside the country. It also includes the activities of warehousing facilities, various tracking facilities, proper inventory management activities and others. some of the major factors that affect the supply chain management are- the environment, decisions regarding the transportation, selection of intermediaries, possible hazards, payment options, insurance facilities and the international rules and regulation regarding trade (Fernie & Sparks, 2018). The main aim of the study is to provide proper cargo shipment facilities for delivering perishable goods china to Sri Lanka. This study will also hig hlight the challenges faced by the cargo shipment facility while delivering the goods, the ways in which these problems can be overcome and to find the best way for delivering the perishable goods using cargo shipment.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4INTERNATIONAL SUPPLY CHAIN MANAGEMENT International Supply of fruits from China to Sri Lanka through perishable cargo shipment China’s trade policy have reduced the barriers on international trade ever since it became a member of World Trade Organization (WTO). It also has its own foreign trade law for the regulating the rules and regulations of foreign exchange (Zhu, 2016). The import and export tariff rates have reduced for daily consumer goods such as fruits, grocery items and others. China has reduced the VAT brackets and has found an opportunity for offsetting a same when exporting goods. The companies exporting goods’ needs to pay VAT on the material that have been used by them for producing the goods being exported and the same is offset when the company exports its goods that are domestically produced and sold (Schenk, Thuronyi & Cui, 2015). The perishable logistics in China help to maintain the quality of the products through marinating the temperatures of warehouses such that the products do not perish before delivery. There are options of merchandise insulators, there are various temperature control techniques, and freight agreements are there with various companies. There are facilities for easy custom clearance and there are various services of consultation to the exporters. The perishable cargo shipment of China aims at providing value to the food chain such that the perishable goods can be developed faster at minimum possible cost. The present fruit industry in China is undergoing major changes such that the customers want to eat fruits such as oranges and pineapples throughout the year and the industrialized countries are not producing these fruits (Zhou, Kai & Liang, 2015). Due to these reasons the pressure on the china cargo shipment has increased. However, many perishable logistics company are meeting these demands of the customers through their shipment services. There are facilities of break bulkshipping,projectshipping andother methodsfor transportationof the perishable goods. Freight and forwarding activities are carried out in various companies of china for the purpose of delivering perishable goods from china to Sri Lanka (Popovych,
5INTERNATIONAL SUPPLY CHAIN MANAGEMENT Shyriaieva&Selivanova,2016).SriLankaisademocraticrepublicislandcountry surrounded by Bay of Bengal. The Sri Lankan government’s objective was to make the country a hub of transshipment due to its location (Lam, 2016). Most of the transportation activities of the country takes place through the sea freights. The country is a part of China’s strategy of one belt, one road. Through this strategy China is trying to improve the connectivity of china to other countries with the help of this trade policy (Sit et al., 2017). However, for delivering goods that the customers expect to be delivery fast, shipping is not the ideal route because it is a time taking transportation process. Before exporting the goods, the companies need to get an export license (Hill et al., 2017). This license is a certification of the goods that will be exported, the exporter, the mode of transportation used. Company’s that obtain this certificate can easily transport their goods to other countries. This certificate is greater under the Foreign trade policy of China. A company that fails to get this certificate cannot transport their goods because it means that there is something wrong with the products that is being delivered and there is some problem. There can be three main types of shipping activities of a company exporting goods. CIF, FOB and EXW. There are temperature controlled shipments for transportation of perishable goods. The best ways of supplying the same The best ways of transporting the goods from China to Sri Lanka for perishable products like fruits, vegetables and others is through air freight (Van der Putten & Meijnders, 2015). This is because the when exporting of perishable goods is done through shipment too much of cost is involved in it. The goods need to be properly stored in the warehouses such that they do not perish. If proper warehousing facilities is not provided in case of shipment transportation then the goods will perish and result in huge financial losses. If the perishable products are transferred through air cargo then the additional cost for storage of material will
6INTERNATIONAL SUPPLY CHAIN MANAGEMENT be less as perishable products can be delivered faster and the risk of perishability of the products will also not be there (Kłodawski et al., 2017). The time taken to deliver the perishable products through air cargo is much lesser than the time taken by shipment cargo. It takes16 days to deliver goods through shipment from Xiamen China to Sri Lanka whereas it takes only few hours through airplane. However, the most cost effective and time efficient mode can be a combination of ship and air cargo. In this technique, the cost will be lesser than the technique used in air cargo. Challenges that can arise while supplying the goods from China to Sri Lanka It becomes difficult to track the transportation of products The tracking system that is provided by various air freights helps customers track the delivery of their goods (Grignan et al., 2015). However, no such facility is available in case of ship cargos. In fact it is one of the oldest forms of transportation with minimum technological innovations. Lack of proper packaging of the goods to be delivered from one place to another Proper packaging is one of the most important parts in transportation of perishable goods from one place to another (Buzby et al., 2015). Since shipment of cargo takes so much time so it becomes even more important to properly pack the goods and then load the goods for shipment. If the goods are not packaged properly then the risk of losses due to perishing of goods and damage will be greater. Cargo damage due to poor packaging is the most common phenomenon.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7INTERNATIONAL SUPPLY CHAIN MANAGEMENT Problems of maintaining quality during transport through temperature controlled storage spaces For maintaining the quality of the perishable goods, it is important for the ship cargos to continuously regulate the temperature. If the cargo shipment carrying perishable goods fails to maintain the temperature then the goods will be perished. Time taking process The process of transporting goods through ships takes time as compared to air cargo. The distance between China and Sri Lanka is about 4500kms and through shipment, it takes about 16 days whereas it takes just a few hours to deliver the goods through air cargo. Besides this, the cost of storing the goods in temperature controlled rooms in case of shipment cargos is higher because the products are to be stocked due to slow transportation system. In case of air cargos the cost of warehousing is very less because the goods need not be maintained in warehouse for too long. Penalty for overweight cargos In case of international transportation of goods as I case of delivery of goods from China to Sri Lanka, there are certain regulations regarding the weight of the cargos that is allowed to be carried while transporting goods (Ahmad & Rachmawati). If the weight of the cargo exceeds that then additional penalty will be placed on the company. Custom clearance problems at the shipping docks There are various problems that are to be faced by the company’s dealing with the transportation of goods through shipment of cargos such as clearance of custom duty. The time taken by the ships to deliver the goods is already too high and further delays are caused by the time taken for custom clearance.
8INTERNATIONAL SUPPLY CHAIN MANAGEMENT Ways to overcome these challenges Using internet of things by cargo freights The delivery of goods through shipment takes a lot of time so many times the customers or the clientswants to know the actual status of delivery of their goods which is prone to errors when manual systems are used. If the items have a barcode on them such that every time they reach a stoppage point in the route of delivery the bar code can be scanned and the progress can be reported to the customers. Automation of inventory management In case of companies that are dealing with huge amounts of stocks it become difficult to manage the inventory properly and much of wastage is caused in the warehouse itself due to theft, and other reasons (Plinere & Borisov, 2015). By having an automated system of inventory management there can be cost reduction. Automation of task management Automation of the task managementwill help in bringing optimizationof the company’s organization. There are many people involved in the process of supply chain management including logistics and when the company manually explains the task roles to these people there can still be confusions. However, when automated methods are used much time will be saved. Use of big data analytics All the data that is generated in the supply chain management is of great importance for the purpose of decisions making by the company (Choi, Wallace & Wang, 2018). After all the data is analyzed, predictions can be made about the factors that can contribute to the
9INTERNATIONAL SUPPLY CHAIN MANAGEMENT profitability of the company. If the data is analyzed properly, then the company can carry out proper asset management, identify new routes through which goods can be delivered in lesser time, identify the risk and many more. Maintaining transparency of operations through IT systems Supply chain management involves certain parties for transportation of the good and also storage if sufficient data can be collected related to the same then it will bring transparency in operations of the company. All the collected needs to be converted into information for the process of analyzing the information’s. Exchange of information between the parties can be increased with the help of IT systems. Automation of the logistics system Automation in the logistics system will include reducing the human intervention and automating most of the processes as that will also help to improve efficiency of operations and the chances of traceability of errors will become easy. Conclusion From the above discussion it can be concluded that there are a number of problems while delivering perishable goods from China to Sri Lanka through cargo shipment such as waste of time due to custom clearance, poor packaging of the goods leading to cargo damage, penalties for overweight cargos, difficulties in maintaining the quality of cargo during shipment and many others. These problems can be overcome through various techniques such as using either completely air cargo such that the perishable products can be delivered on time and another method is using both ship and air cargo. The best way to deliver fruits from China to Sri Lanka using the perishable cargo shipment is through air freight. Some of the
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10INTERNATIONAL SUPPLY CHAIN MANAGEMENT majortechniquesforovercomingthechallengesisthroughautomationofinventory management, automation of logistics and many others.
11INTERNATIONAL SUPPLY CHAIN MANAGEMENT References Ahmad, R., & Rachmawati, I. IMPLEMENTATION OF PROTECTION AND INDEMNITY FOR INDONESIAN SHIP A COMPLIANCE TO COMMON LAW SYSTEM. Buzby, J., Bentley, J., Padera, B., Ammon, C., & Campuzano, J. (2015). Estimated fresh produce shrink and food loss in US supermarkets.Agriculture,5(3), 626-648. Choi,T. M.,Wallace,S. W.,&Wang,Y. (2018).Big dataanalyticsin operations management.Production and Operations Management,27(10), 1868-1883. Christopher, M. (2016).Logistics & supply chain management. Pearson UK. Fernie, J., & Sparks, L. (Eds.). (2018).Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers. Grignan, P., Baldacci, A., Pinl, J., Boit, D., & Cappelletti, M. (2015).U.S. Patent No. 9,208,673. Washington, DC: U.S. Patent and Trademark Office. Hill, A., Redd, C., Gotham, D., Erbacher, I., Meldrum, J., & Harada, R. (2017). Estimated genericpricesof cancermedicinesdeemedcost-ineffectivein England:a cost estimation analysis.BMJ open,7(1), e011965. Kłodawski, M., Lewczuk, K., Jacyna-Gołda, I., & Żak, J. (2017). Decision making strategies for warehouse operations.Archives of Transport,41. Lam, J. S. L. (2016). Strategy of a transhipment hub: the case of port of Singapore. InDynamic shipping and port development in the globalized economy(pp. 12-38). Palgrave Macmillan, London. Mangan, J., Lalwani, C., & Lalwani, C. L. (2016).Global logistics and supply chain management. John Wiley & Sons.
12INTERNATIONAL SUPPLY CHAIN MANAGEMENT Plinere,D.,&Borisov,A.(2015).Casestudyoninventorymanagement improvement.Information Technology and Management Science,18(1), 91-96. Popovych, P., Shyriaieva, S., & Selivanova, N. (2016). Analysis of the interaction of participantsfreightforwardingsystem.JournalofSustainableDevelopmentof Transport and Logistics,1(1), 16-22. Schenk, A., Thuronyi, V., & Cui, W. (2015).Value added tax. Cambridge University Press. Sit, T., Wong, E., LAU, K. C., & WEN, T. (2017). One belt, one road: China's strategy for a new global financial order. Van der Putten, F. P., & Meijnders, M. (2015).China, Europe and the Maritime Silk Road. Clingendael, Netherlands Institute of International Relations. Zhou, J. H., Kai, L. I., & Liang, Q. (2015). Food safety controls in different governance structuresinChina'svegetableandfruitindustry.Journalofintegrative agriculture,14(11), 2189-2202. Zhu, Z. (2016).China's new diplomacy: Rationale, strategies and significance. Routledge.