Ch. 12: Distribution Strategy: Role of Logistics in Managing the Supply Chain

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Ch. 12: Distribution Strategy: Role of Logistics in Managing the Supply Chain by Mind Map: Ch. 12: Distribution Strategy: Role of Logistics in Managing the Supply Chain

1. Background

1.1. indirect exporting channel is most frequent choice when engaging for 1st time

2. Outsourcing

2.1. use to get info specific to a particular aspect of distribution

3. Logistics & supply chains

3.1. logistics are the commercial movements of products

3.2. 3rd party logistics operator (3PL)

3.2.1. provides services associated with international and/or domestic requirements

3.2.2. services provided include:

3.2.2.1. Haulage

3.2.2.1.1. enables collection & delivery of principal's products

3.2.2.2. Storage

3.2.2.2.1. provides warehousing for the principal's products until delivery is requested

3.3. supply chain

3.3.1. coordinated system involved in moving products from supplier to buyer

4. Mechanism of exporting & importing

4.1. freight forwarders

4.2. risks of exporting - 5 types:

4.2.1. buyer risk

4.2.1.1. buyers may refuse to pay

4.2.2. country risk

4.2.2.1. buyer will not be able to pay because of restrictions by foreign government

4.2.3. exchange risk

4.2.3.1. reduced profit margin resulting from currency fluctuation

4.2.4. knowledge risk

4.2.4.1. misunderstanding between buyer & seller regarding responsibilities for transit of goods

4.2.5. transit risk

4.2.5.1. goods being lost or damaged

5. Logistics & market entry method

6. The export process (mechanics)

6.1. Solicit sales

6.1.1. Liner companies

6.1.1.1. operate cargo ships that sail on regular schedules to & from specified seaports

6.1.2. Tramp vessels

6.1.2.1. have no fixed ports of call or designated sailing schedules

6.2. Negotiation of terms

6.2.1. anything exported from US has to have a license from Fed government

6.2.2. types of license

6.2.2.1. General

6.2.2.1.1. for products that are not sensitive nor going to sensitive countries

6.2.2.2. Validated

6.2.2.2.1. government permission is required before product can be shipped

6.3. Prepare order

6.3.1. Containerization

6.3.1.1. transporting using metal box containers

6.3.1.2. 90% of all int'l cargo shipped this way

6.3.2. Specialized ships

6.3.2.1. Lighter aboard ship (LASH)

6.3.2.1.1. open in back at waterline so that small flat-bottomed barges called lighters can be floated in & stored on elevated racks

6.3.3. Export documents

6.3.3.1. commercial invoice

6.3.3.1.1. most important

6.3.3.2. contract

6.3.3.3. contract of carriage

6.3.3.3.1. before loading, shipment is inspected for an discrepancies

6.3.3.3.2. if OK, "Clean on Board"

6.3.3.4. insurance

6.3.3.4.1. "all risk insurance" is best

6.3.3.5. packing slip

6.3.3.5.1. specifies goods being shipped

6.3.3.6. postal forms

6.3.3.6.1. must fill out if shipping USPS

6.3.3.7. shippers export declaration

6.3.3.7.1. required if:

6.3.3.8. specialized documents

6.3.3.8.1. certificates of origin

6.3.3.8.2. phytosanitary certificate

6.3.3.8.3. consular invoice

6.4. Ship

6.5. Conclusion

6.5.1. after product arrives

6.5.2. includes:

6.5.2.1. concluding the sale

6.5.2.2. making product available to the buyer

6.5.2.3. acknowledgements

7. Paperwork reviewed

7.1. Carnet

7.1.1. is a form that is needed when a sample of a product is imported for salespeople or potential buyer