Global Value Chain Module: Tibo's Supply Chain and Exporting Footwear

This case study analyzes Tibo Inc.'s supply chain practices, focusing on the benefits and costs of new suppliers, particularly in the context of international procurement. It examines the steps required for due diligence when contracting with new international manufacturers, addressing key aspects of planning and data collection. The study further explores the documentation requirements for exporting footwear from Brazil to Saudi Arabia, including certificates of origin, customs invoices, bills of lading, and product conformity programs. The analysis highlights the importance of maintaining stability in export businesses through proper documentation and adherence to Saudi Arabian regulations. The case study references relevant literature on creating shared value and the role of export-promotion programs.

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Name of the Student
Name of the University
Author Note

1LOGISTICS AND SUPPLY CHAIN MANAGEMENT
CASE STUDY 1 - Tibo’s Supply Chain Practices
1. a) What are the benefits and costs of having new suppliers at Tibo?
The benefits of having new suppliers in Tibo are discussed below:
Increased Efficiency – A better and new established suppliers will be helping the
company by developing better supplier relationship and developing a better
communication. The company will gain a more and better understanding of the business.
It will lead the company by helping them to meet the needs more effectively.
Continual Improvement of operations – By choosing new suppliers Tibo will be able to
establish a long-term relationship between the suppliers and the buyers which will allow
the company to have a free flow of feedback and new ideas.
Various types of costs are associated with the implementation of the above benefits.
Therefore it can be recommended that a massive commitment is required by both the
company and the suppliers. For example if the company wants to receive benefits from
the suppliers then both Tibo’s product design management team and supplier’s
engineering team must be integrated into the decision making process. According to this
process will be quite costly for the company (Porter & Kramer 2019).
b) What steps would Chez and Terry have to take to ensure Tibo exercised due diligence
before contracting these two new international manufacturers?

2LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Planning phase is the first phase where the company determines the exact scope of the
exercise and specific areas where it should focus. The company should activel design an
appropriate tem structure depending upon the specific transaction of materials.
Data Collection Phase is the phase where the company involves the preparation of an
exhaustive checklist for the nature of the documents which is to be followed by the
targeted supplier.
Report Finalization phase is that part where both the companies will be finalizing the due
diligence report by the respective team.
CASE STUDY 2 – Exporting footwear to new markets
1. What advice on documentation requirements would you give a Brazilian footwear
company who wants to export its products to Saudi Arabia?
Saudi Arabia has been maintaining stability in the imports of Brazilian footwear. For
all the exports to Saudi Arabia a conformity assessment program has to be implemented,
where the products which will be exported requires a certificate of conformity which is
also referred as the SASO CoC. It I maintained so as to enable the export of the shos to
get its clearance from the Saudi Customs. The Brazilian footwear company will alos have
to find out the contact information as well as a resource area which will contain the
essential documentations and other important things which needs to be take care of while
exporting.
In order to maintain the stability in the export business the following documentation
is required when exporting the goods to Saudi Arabia :

3LOGISTICS AND SUPPLY CHAIN MANAGEMENT
 A certificate of origination of the products which needs to be translated in Saudi
Arabia.
 The Saudi Arabian customs invoice should be attested by the agency which is
responsible for the trade from Brazil to SA.
 A bill of lading
 If the goods are insured by the exporter then the insurance documents should also
be sent accompanied by an Arabic translator.
 Detailed documentation of the packing list.
 Official cargo insurance from the exporter.
 An irremovable label which will showing the origin of the company.
 Product conformity program which is also known as the (PCP) or the Certificate
of Conformity, it should be issued by an approved body or agency by the exporter
company (Machado & Bischoff 2018).

4LOGISTICS AND SUPPLY CHAIN MANAGEMENT
References
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable business
(pp. 323-346). Springer, Dordrecht.
Machado, M. A., & Bischoff, V. (2018). THE BORN GLOBAL FIRMS IN BRAZIL AND THE
ROLE OF EXPORT-PROMOTION PROGRAMS. Revista Alcance, 25(1), 3-19.