Ocean Freight Forwarder Requirements

This assignment examines the essential service management requirements for an ocean freight forwarder. It delves into concepts of Total Quality Management & Business Excellence, exploring how they apply to this specific industry context. The analysis considers various factors influencing successful operations within the field of ocean freight forwarding.

Zakariya Huseen Mahamud LD0358 Strategic Supply Chain Management
LD0358 Strategic Supply Chain Management
Northumbria University
Business Top Up (London Campus)
2016
Strategic Supply Chain Management
Analysis of Literature review On Case study of
Tawakal Cargo
Lecturer: Mr. Umair Tanveer
Student: Zakariya Huseen Mahamud
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Zakariya Huseen Mahamud LD0358 Strategic Supply Chain Management
Contents
1. Abstract...........................................................................................................................................2
2. Introduction………………………………………………………………………………………………………………………………….….3
3. Current Supply Chain Model of Tawakal Cargo:..............................................................................3
3.1. Services:.......................................................................................................................................3
3.2. Efficiency and Effectiveness of the strategic role of Tawakal Cargo’s SCM..................................3
3.3. Functions of Supply Chain of Tawakal Cargo:..............................................................................4
4. Literature Review............................................................................................................................4
5. Conclusion.....................................................................................................................................11
6. References.....................................................................................................................................12
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Abstract
Planning and managing of all the logistics activities such as procurement, sourcing, supplying
management as well as conversion is defined as supply chain governance. With the increasing
demand within the contemporary scenario and environment to be an experienced transportation
and logistics company like an ocean transport partner has certainly not been more critical.
Therefore, supply chain management is very important for contemporary businesses to have an
efficient working. The report covers detailed study on supply chain management of Tawakal
Cargo. It also presents a new model for the company to apply in its business system in order to
grab a better position in the market. Lastly conclusion is given along with recommendations for
the application of new model.
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1. Introduction
Every company should maintain their demand if the customer and according to that
provide them best services. Management also focus on the logical strategical things that leads to
mainatin their supply chain in more effective manner. The report is based on discussing current
supply chain model of Tawakal Cargo. And further it provides analysis of Literature review on
case study of Tawakal Cargo comparing its current model with the proposed model. At the end
conclusion is given along with recommendations.
Current Supply Chain Model of Tawakal Cargo:
Management of Tawakal Cargo in which they done minimum 400 tons pf weight per
month. In addition to that management having liable customers because they provide door to
door services.
Services:
 Management focus on the best design in which they provide best services
 better planning is also included in this in which strong network with customers are
included in this.(Liang, Chou and Kan, 2006)
 Information Technology support
Efficiency and Effectiveness of the strategic role of Tawakal Cargo’s SCM
• Cargo home delivery services in which customer get their product in their door step.
• Management also focus on the effective services in which they focus on the speed
delivery.
• Management also ensure that their parcels are safe with courier company.
• Experienced individual and professional who provide the best services.
• Safe and secure packet is also included in this.
• Management also provide 24*7 Online services
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Functions of better and effective chain of supply in the entity:
• Customer and order management: the main function of entity is to place customer’s
order. Tasks are related with fulfilling those orders.
• Inventory: organizing and management of inventory
• Transportation: provides the transportation for private and hire
• Warehousing: private and public
• Materials handling and packaging: controlling, moving, storage and protection of
products and materials using the semi-automated, manual and automated equipment.
• Facility network: decision of location in a company’s network of supply chain
Literature Review
There is a doubt with sea freight but is one of the most cost-effective ways to deliver your
product from on place to another one. If company compare its services with another one so that
they can feel that how slightly slow their services in which parcel delay is included, so whenever
entity makes sure sufficient time for delivery of goods. In addition to that when the management
of the company in which they concern with the better and equip work. To make sure the delivery
route of goods are procedures for export and import customs clearance in several countries form
an unloading port to final place; these operations are provided by the specialist staff of company
while keeping the high quality (Seuring et al., 2008).
Concept of Supply Chain Management
Supply Chain Management is the network of interrelated businesses as well as their activities
that mainly focuses on the logistics related with acquiring the products and services and the
delivering the end products and services to the ultimate customers. As per the view of Rodrigue,
Comtois and Slack, (2013) supply chain activities mainly exists in different manufacturing and
service industries that deals in performing activities related with procurement of material from
different vendors, transform into the finished goods and they distribute the final product to end
users (Rondinelli and Berry, 2000). The chosen firm is providing number of cargo services for
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door-to-door, fixed time delivery to all main parts of the globe. Because of company’s global
buying power of shipping, company is able to negotiate for long term agreements with reputable
carries of ocean that make sure competitive rates and schedule flexibility of receiving (Krause,
Vachon and Klassen, 2009). Traditionally acquiring, planning, manufacturing as well as
distributing activities were handled independently by the organization that often sometime
results in arising conflicting situation. Therefore, all the logistic activities were integrated
together in such a manner that cargo company can easily integrate the flow of material activities
through interconnecting all the channels. It is also consider as one of the effective activity of
cited firm is that it provides regular updates schedules to its client and online shipment tracking
service for visibility of end-to end supply chain. Experienced and talented team of ocean cargo
professionals of company are located across the world who help in organizing the most cost
effective and appropriate solution for their clients ("Tawakal cargo", 2016).
Entity is dealing with strong alliance in which agents and representatives majorly deals
with the cities that assist for better earning. In which Burco, Hargeys are companies who are
extremely efficient in the procedure of clearance with the help of cargo or courier. Smooth
communication is good for better interactions in which clients and customers is the major
sources for the entity towards the success. Company also provide training and development
programmer that assist for the accomplishment of customer need and services. If customer wants
door-to-door services then it will be provided to them. Charges of service includes customer
clearance, terminal fees and local delivery cost to delivering addresses in Mogadishu, Hargeysa,
Burco, Addado, Baldweyne and many other locations ("Tawakal cargo", 2016).
Evolving operational decisions in the Strategic Supply Chain Management
As per the view of Laulajainen (2008) all the decisions for the supply chain management are
classified into the different categories that is strategical and operational decisions. The term
strategic decisions are closely connected with accomplishing the corporate objective of the
service organization that is mainly over the long time period. On the other hand, another supply
chain decisions include operational decisions that concentrate on managing the daily activities
related with flow of products and raw materials. Accordant with the view point of Lai, Ngai and
Cheng (2005) the major operational decisions related with supply chain include decisions related
with forecasting the demand, inventory decisions, distribution decisions. The foremost evolving
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operational decisions within the Tawakal Cargo include inventory decisions that is within the
day which inventories need to be organized and managed. Within supply chain inventories are
exists are each and every phase that support in accomplishing their goals and objectives. On the
other hand, another decisions is related with transportation decisions as the key goal of Tawakal
Cargo is to transport the cargo as well as freight by the sea transportation to the ultimate
customers. Therefore, this is consider as significant decision that need to be taken by the cited
organization so that they can easily succeed in accomplish the objectives. Accordant to Frémont
and Franc (2010) transportation decisions mustalso focuses on shipping sizes as well as decisions
related with routing and planning of equipment to that they may easily results in transporting
their inventory in the effective manner.
Theory of Supply Chain Management
The key theory that supports the supply chain management is Supply-Chain Operations
References (SCOR) it is termed as the process reference model that basically support the
Tawakal Cargo company in addressing their supply chain with engaging in sudden improvement
within the Supply chain process. The model mainly focuses on the five distinct management
processes that is plan, source, make, deliver and return.
As per the view of Tongzon (2009) the foremost element in the process include planning that is
developing course of action that accomplishes the demand and supply so that it may easily meet
the requirement related with sourcing and delivering of the freight to the customers or client.
Another management process is source that is engaging in procedure related with selecting the
best transportation system at the possible rates. Along with this, another step in the model is
making that is managing or focusing on the documentations that is engaging in certification of
origin, commercial invoice, air freight shipments as well as documenting bill of landing so that it
may results in proper shipping of cargo to the ultimate destination (Roso, 2008). It may also
include considering the weight of cargo and their charges in Kg. Another element is packaging it
is consider as the key competency or ability of Tawakal company that deals in delivering safe
cargo as well as goods to the ultimate destination or customers. The company mainly focuses on
delivering through sea freight or shipping lines, vehicle shipping as well as door to door shipping
services etc. however, the last step in the model is return that arises when the packaging of
carriage is disrupted.
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Along with this, Sea freight Forwarders is also consider as an effective model, which is useful
for entity. When the company use this that they can initiate from the better and effective
showroom. In this entity provide various services with the extra one also. So that this type of
work attract customer towards the organization (Liang, Chou and Kan, 2006). It is also include
when customer import any thing and then it delver to its purchase owner. In the extra services
management also concern with the packaging and all other charges. Company also focus on the
warehousing in which they store their stock and many more things. Carriers deeply influence the
economics of business of the sea cargo forwarding.
The contemporary realities of the organizational supply
In order to successfully accomplish the organizational supply chain Tawakal Cargo company can
mainly focuses on the contemporary methods and tools such as JIT (Just In Time), Lean process
as well as Agility logistics. JIT is consider as an effective method in the supply chain
management whose key aim is to attain the objective or goals of the inventory to meet their
demand. As per the view of Slack (2001) the advantage of JIT inventory is meeting the
requirement and needs of the customers. Along with this, lean production focuses on eliminating
or obviating the waste from the workplace that is mainly used in the production or manufacturing
industry.
In the present scenario, company offers full variety of logistics services throughout supply chain.
Another expert area within the organization is freight of transport from the region to UK to
Somalia. Company assign trained and knowledgeable employees within their premises that are
engaged in performing numerous of customer clearance process that mainly considers
inspections, declaration and checks associated to taxation in each region on the behalf of
company’s clients ("Tawakal cargo", 2016). Assigned staffs take all kind of measures to make
sure prompt respond to the changing systems and procedure of custom clearance inside their
countries. According to the Jaržemskis (2007) it also focuses on understanding of forward freight
features, legal requirements and tariff rates, their offers can also cover the safest routes with
optimum cost. Company can make sure unique and efficient customer program, customized to
specific business needs (Jarzemskis, 2007). Forwarders contract with a bearer or frequently
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different transporters to move the products. A forwarder does not move the products but rather
goes about as a specialist in the logistics system. These transporters can utilize an assortment of
delivery modes, including ships, planes, trucks, and railways, and regularly different modes for a
solitary shipment. For instance, the freight forwarder may organize to have load moved from a
plant to an airplane terminal by truck, traveled to the destination city, and then moved from the
air terminal to a client's place by another truck (Verny and Grigentin, 2009).
As per the view of Rondinelli and Berry (2000) chosen cargo firm can gain better position in
terms of Supply Chain Best Practice by adopting Sea freight Forwarders strategies. Company
makes close relation and contact with its agents overseas make sure cargo projects management
make sure operations continue to run smoothly during the whole process. The services include
informing customers about the predicted delivery times and any delays if any occur during the
journey. The time of delivery ranges from 5-8 weeks depending upon the destination in Somalia.
But with Sea freight Forwarders, it can be made even better and quick (Wuisan et al., 2012). On
the other hand, it also focuses on Universal freight forwarders commonly handle worldwide
shipments (Branch, 2006). Universal freight forwarders have extra mastery in get ready and
handling traditions and other documentation and performing exercises relating to global
shipments (Schøyen and Bråthen, 2011).
The giant moving organizations over the world realize that any sort of moving – whether it's
private moves, working environment migrations or transporting merchandise – requires a
considerable measure of work and can accompany a great deal of anxiety. Cargo administrations
are restricted these moving organizations can help, furnishing customers with significant
serenity, knowing the specialists have each part of their vehicle under control (Laulajainen,
2008).
In the present context, top moving organizations normally have a wide system of accomplices for
their freight forwarding administrations, especially with regards to global sea or airship freight
forwarding. These associations help cargo administrations organization mastermind
arrangements to get your products to their last destinations snappier and at the best rate. Freight
forwarding offers protected alternatives. In case the company is giving delivery merchandise
universally, one of company’s top concerns is that the things arrive securely. According to Yang
(2010) most of the organizations can outline an arrangement to meet your particular worldwide
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freight forwarding needs and decrease the money related dangers connected with abroad
transportation. Tracking of shipment is quite easy. Internet tracking frameworks have developed
in fame and ought to be accessible when you require it. Indeed, they have ended up vital to all
supply chain management arrangements. Cargo administrations present to company the force of
one (Saccomano, 2003).
In the global supply chain management system administrators need to enhance the range of
organization, little or huge, with the goal that it can get to new customers and potential
outcomes, enlisting the master choices of a global sending operators would be helpful to the
company in more than only a way. This is not on account of sending operators are experts in the
segment of store network, additionally in light of the fact that they can help the organization in
cargo movements from the source to the last component of accommodation without setting a
weight on company’s assets (Leinbach and Bowen, 2004).
According to Myerson (2016) there are few points of demand that are connected with universal
forwarding agents and how freight forwarding administrations can help an organization find new
markets and potential outcomes. A worldwide freight forwarder has the assets and additionally
the experience for caring for specific cargo choices, for example, arranging of business record,
shipper's exchange declaration, bill of replenishing, and different records that might be
troublesome and tedious to be composed. On the contrary Seuring, Sarkis, Müller and Rao
(2008) has also assessed that this transportation sending suppliers’ works through an exceedingly
productive and master organize that is perceived by an assortment of time-characterized airship
cargo, ocean cargo administrations, and different choices and giving choices offering door-to-
door or door-to-depot or customized routine as per company’s routine and details (Yang, 2010).
As per the view of Notteboom and Rodrigue (2009) one of alternate preferences of ocean freight
forwarding administrations is that the included experts are knowledgeable with all give cycle
capacities, which implies that administration can basically focus on center exercises of the
organization and be totally guaranteed of the vehicle and logistics' viewpoints as they are being
overseen by pros (Notteboom and Rodrigue, 2009). Also, the specific techniques and transport
options gave by the ocean cargo administration suppliers comprise of evaluation of delivery size
and finances and offering direction on the utilizing the most suitable financially savvy action of
the cargo. Every one of these favorable circumstances of freight forwarding administrations
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imply that you can without much of a stretch find and acquire the key focal points of flexible and
dependable sorting out choices in the viewpoint of cargo action, including movement of various
things, for example, icy and solidifying things, unsafe substances, threat things, and temperature-
delicate things (Tongzon, 2009).
The rundown of favorable circumstances connected with global forwarding agents does not end
here. Administrations gave by them are flexible and conceivable of being customized, by details
of their customers. Additionally, these options are connected with the most elevated amounts of
wellbeing in operation and your organization and its customers advantage from smooth,
completely consolidated, and viable transport and methodologies choices from the source
component to the conveyance calculate other than picking up a special side over the contenders.
Notwithstanding these focal points, you can even request warehousing and storerooms that are
given by most worldwide sending operators on solicitation and look for help on passageway
gathering, warehousing, stockpiling, and ocean cargo protection. At the end of the day, a
delivery sending intermediary gives options that assistance in diagram of transport and
techniques options so that an organization can get the complete focal points of smooth data
control frameworks and offer transportation perceptibility to the customers (Lai et al., 2005).
According to Manuj and Mentzer (2008) effectual supply chain management assists the
organization in attaining the competitive advantage in the marketplace that also benefit the
company in mitigating the associated risk and hazards that is accompanying with procuring the
raw material and delivering the services. The key advantage of SCM is to engage in
accomplishing better inventory control as well as accomplish the requirement of their all
customers. Linton, Klassen and Jayaraman, (2007) has also stated that as supply chain
management is growing at faster pace the business have more option to deliver their services at
the faster rate in the different destinations. Along with this it also benefit the Tawakal Cargo
company in determining and identifying best way to ship the products with reducing the overall
cost. On the other hand, Lee, Padmanabhan and Whang (2004) has also stated that there are
certain disadvantage as sometime it may also consider as expensive process to be executed in the
Tawakal Cargo as the company deals in serving different destination. Therefore, it is implied that
in the global scenario supply chain management is increasing at the faster pace that support in
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enhancing their logistics related with acquiring and delivering the goods and packages to the
ultimate destination.
Conclusion
It is concluded that ocean freight forwarding administrations can help Tawakal Cargo to pick up
a novel side in its business sector vertical so it can get more than what it expected in any case
without putting a weight on the constrained assets of the organization. Tawakal has established
strong and long-term relation with world’s premium shipping lines. Tawakal always chooses the
best and reliable carriers of the world. Company is providing the best sea carriage solutions to
distinct clients, based on their long time experience and prosperous knowledge on custom
clearance situations and other legal requirements depending on the type of country, at the time of
operating logistics network all over the world.
Tawakal Cargo can gain better position in terms of Supply Chain Best Practice by adopting Sea
freight Forwarders strategies. Universal freight forwarders commonly handle worldwide
shipments. Universal freight forwarders have extra mastery in get ready and handling traditions
and other documentation and performing exercises relating to global shipments. They save
company’s time and cash. Freight forwarding offers protected alternatives. Tracking of shipment
is quite easy. Internet tracking frameworks have developed in fame and ought to be accessible
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when you require it. Indeed, they have ended up vital to all supply chain management
arrangements. One of the most delightful parts of working with one organization for the delivery,
freight forwarding and other moving needs is the straightforwardness of working with one
person. One of alternate preferences of ocean freight forwarding administrations is that the
included experts are knowledgeable with all give cycle capacities, which implies that
administration can basically focus on center exercises of the organization and be totally
guaranteed of the vehicle and logistics' viewpoints as they are being overseen by pros. With
appropriate knowledge of different features of cargo, tariff rates, statutory requirements,
proposals of company also cover the safest routes with optimum cost. Company can flourish if it
adopts the Forwarding Service Options.
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