Global Expansion: Supply Chain Management at Plastic Bottle Agency

This report examines the strategic expansion of a plastic bottle agency into the United States, focusing on the design of an effective global logistics and distribution network. It begins with an introduction outlining the report's objectives, followed by a discussion of the advantages and disadvantages of globalization for the agency. The report analyzes the current logistic network and proposes a new supply network, emphasizing the importance of economic order quantity. Ethical and legal considerations in global logistics management are thoroughly examined, including cultural considerations in contract negotiations and the influence of exchange rate fluctuations. The conclusion summarizes the key findings, highlighting the significance of strategic implementation and effective supply chain management for successful global expansion. The report references various academic sources to support its analysis.

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Supply chain Management at Global Expension
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Contents
Introduction...........................................................................................................................................2
Advantages of being global...................................................................................................................2
Disadvantages with globalisation..........................................................................................................3
Overview of the current logistic network..............................................................................................3
Supposed supply network.................................................................................................................4
Ethical and legal consideration in logistic management at global level.........................................5
Influence of exchange rates fluctuations................................................................................................5
Cultural consideration in negotiation of supply contracts.................................................................6
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

Introduction
The objective of this report is to design the most effective and suitable logistic distribution
network to fulfil the aim of business distribution at global level in the state of United States.
As discussed in the previous reports, logistic team of plastic bottle agency at the Hangzhou
has effectively developed logistic management and distribution network after implementation
of the demand forecasting and bid distribution supply network in the country (Ageron,
Angappa, & Spalanzani, 2012). Presently this report is focuses to plan the effective global
logistics management and supply chain distribution network in the supposed country that is
United States. This report will discuss the following points:
Advantages of being global
Plastic bottle agency is doing better in the present state and it is planning to go global and
expand the business at the united states, taking this decision is very challenging but it have
several positive impact and following advantages are associated with the decision of being
global (Ariyawardana, 2017).
 New Revenue Potential from the new marker and expectation of the demand
incriminate in the new state
 The Capability to serve More People with employment opportunities
 Superior Entrance to Talent of high profitability
 Learning a New Culture of different values
 Exposure to Foreign Investment Opportunities
 Improving the Company’s Reputation
 Expanding Company Markets

Disadvantages with globalisation
Taking the decision being global is not a one-day step. It needs effective planning,
information about the supposed market, managing strategies, inflation rates, selection of
communication and strategies to negotiate with the new marker suppliers and producer,
several challenges that are supposed to be faced by a successful or unsuccessful both kind of
enterprises at the time of deciding to be global. Following are disadvantages of being global
 Shipping Customs and Duties
 Barriers of language
 Differences between the culture and values
 Customers taste and preferences challenges are high for the new product
 Returning products
 Intellectual property threat
Overview of the current logistic network
Current logistic network is based on the demand foresting strategies where in the previous
assignment logistic team has discussed the effective strategies to meet the demand of the
customer in china and to make effective contribution with the suppliers to manage the proper
delivery of the products to the customers. Resent distribution network is focused to target to
complete the demand and satisfy the customers (Beske-Janssen, Schaltegger, & Liedke,
2019). Resent logistic and supply management is based in the economic order quality
method. “EOQ is planned to be a well-adjusted mass that best reduces both the purchasing
cost and the carrying cost for the inventory in the organisation and minimises the cost of
factory production to maximise the profit in present time.

Source: (Fernie & Sparks, 2018)
Supposed supply network
At the global level no changes or minor changes are important to introduce because we
already have implemented many changes in the domestic logistic and supply chain
management if the company (Chen, Sobhan, Gurdal, & Hu, 2018). Additionally our
experience over the economic quality management will help to make the effective negotiation
with different suppliers in the new place. Adapting their strategies would be challenging, and
will lead the training cost for the employees at high level. Proper inventory control at the both
end that is frim suppliers to distributors should be based in economic quantity method. This
company will use the cheapest mode of transportation as ship to transfer the material or
products because making contract for the longer supply needs on time delivery (Meixell,
2015).

Source- (Fernie & Sparks, 2018)
Ethical and legal consideration in logistic management at global level
Ethical values has been considered in many restraints with their submission to various
practices has been examined from many years for example; remedy and regulation. These has
been moderately stretched into the professional ground, and developed a difficulty of
mounting attention for many businesses. It has headed to queries regarding whatever
establishes moral conduct, at what level these all, does important to aplly, and what
assistances a company may originate from its recognition (Chen, Sobhan, Gurdal, & Hu,
2018).
There are many procedures complicated in the change of a produce from raw material to final
goods, these processing are important to be managed to create an ideal stability of business
supplies, exactly effectiveness, and a deliberation of the broader influences they might have
or to build. The supply series has developed vigorous to administrative achievement that
companies now participate as joint venture of supply chains in place of as separate
individuals. Consequently, the principled comportment of the supply chains has similarly

instigated to be examined, together from an interior business performance viewpoint, and
from the growing apprehensions held by the frequent shareholders of the organisations
(Kabra, 2015).
These ethics and legal implication are to study effectively the cultural diversity and
sentiments of the customers and then proceed for the production and supply. Manage the
organisational activities with the legal rules of the application in the country.
Influence of exchange rates fluctuations
Taking a decision for being global in the present time is not easy as in the world of economic
instability and universal currency changes many issues and important aspects related to the
Influence of exchange rates fluctuations of a country is essential to consider (Lee, 2019). As
in the present report china is the domestic and United states is the planned destination of the
enterprises to enter in the global business. Following points are essential to be considered
about Influence of exchange rates fluctuations for the logistic team (Malekian & Rasti-
Barzoki., 2019).
Currency vacillations are a normal results of the fluctuating interchange rate system, which is
the custom for most foremost markets. Many basic and practical aspects affects the
interchange rate of one exchange paralleled to one more (Centobelli, Cerchione, & Esposito,
2017). These include comparative stock and request of the two currencies, , technical support
and resistance levels, interest rate differentials economic performance, an attitude for price
rises, capital runs and so on. As these aspects are generally in a government of everlasting
flux, exchange values, vary from one moment to the next (Fernie & Sparks, 2018).
Cultural consideration in negotiation of supply contracts

Negotiation of the contract for the supply and logistics management at the time of being
global needs to plan effective BATNA and agree potent that will include the win-win strategy
for the company domestic and international both as well (Beske-Janssen, Schaltegger, &
Liedke, 2019).
Conclusion
This report is future expansion of the establishes plastic bottles agency of China in the united
states, this report concludes that effective strategy implementation and managing of the
logistic with the help of supply chain management affect the effective stability of the business
in the planned destination for the globalisation.

References
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management: An empirical study. International journal of production econnoics,
140(1), 168-182.
Ariyawardana, A. G. (2017). Consumers' trust in vegetable supply chain members and their
behavioural responses: A study based in Queensland, Australia. Food control, 193-
201.
Beske-Janssen, P., Schaltegger, S., & Liedke, S. (2019). 19 Performance measurement in
sustainable supply chain management: linking research and practice. Handbook on the
Sustainable Supply Chain, 331.
Centobelli, P., Cerchione, R., & Esposito, E. (2017). "Environmental sustainability in the
service industry of transportation and logistics service providers: Systematic literature
review and research directions. Transportation Research Part D: Transport and
Environment , 53, 454-470.
Chen, W., Sobhan, A., Gurdal, E., & Hu, Z.-H. (2018). Location-based pricing and channel
selection in a supply chain: a case study from the food retail industry. Annals of
Operations Research, 1-42.
Fernie, J., & Sparks, L. (Eds.). (2018). Logistics and retail management: emerging issues and
new challenges in the retail supply chain (3 ed.). London and Philadelphia: Kogan
page publishers.
Kabra, G. R. (2015). Identification and prioritization of coordination barriers in humanitarian
supply chain management. International Journal of Disaster Risk Reduction, 128-138.

Lee, C. H. (2019). Creativity and innovation in the restaurant sector: Supply-side processes
and barriers to implementation. Tourism Management Perspectives, 31, 54-62.
Malekian, Y., & Rasti-Barzoki., M. (2019). A game theoretic approach to coordinate price
promotion and advertising policies with reference price effects in a two-echelon
supply chain. Journal of Retailing and Consumer Services, 51, 114-128.
Meixell, M. J. (2015). Stakeholder pressure in sustainable supply chain management: a
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Management, 69-89.