A Case of Late Deliveries

CASE STUDY 8 (Questions And Answers)

1. (a) Identify the challenges Mario faced with shipping the products to Modu Equipment.
(b) What steps could have been taken by the previous supply chain manager and owner
to prevent these challenges?
Ans:
Following are the challenges faced by Mario with shipping product to Modu Equipment:
1. To deliver product on time to Modu equipment

As per Modu’s president the products have not been reached on time. Also, since two
months it has not received some of the equipment ordered. President stated “Order of
motor wheels was urgently needed for a client, but not yet arrived” and flagging with the
previous supply chain manager which might lead to a great loss for Mario.

2. A signed statement by Excel

President of Modu Equipment was also waiting for a signed statement certifying the
country origin of the product and that the product were in accordance with the invoice. If
this problem could not be solved by Excel, then Modu Equipment might start using
Miami –based company which had recently approached. This would also be a great loss
for Mario.

The major challenge was to find how the equipment were shipped from the warehouse.
Following are the steps taken to prevent these challenges:
After Mario meet the problems faced by Modu Equipment, it started a detailed investigation to
find out the solution
1. The type of equipment being shipped.
2. Tracking the location of the product.
3. Using freight forwarder, which offered a full range of services.
4. Providing a signed document

2. What modes of shipping would be most cost-effective for Excel Air Enterprises in the
Following situations?
a. Shipping from the U.S. to Bangladesh
 b. Shipping within the U.S.

Ans:
a. Shipping from the U.S to Bangladesh – By Sea freight
b. Shipping within U.S. – By Trucks Freight

3. Why would using full-service freight forwarders be beneficial to Excel Air Enterprises?
Ans:
Benefits to Excel Air enterprises by using Full-service Freight forwarders:
Door - to - Door service - Ensuring the safety of the product.
Satellite tracking - Ensuring the correct path (source-destination) and making aware about the
delays.
Custom clearance - A full proof legal document for the shipment of goods (Import and export)
which guarantees the custom duties have been paid and shipment is approved.

4. How will the looming driver shortage affect Excel Air Enterprises and freight
forwarding Companies?
Ans:
Finding new truck drivers to replace those retiring had become a nationwide problem.
Affects due to shortage of driver:
i. Delay in delivery of product
ii. Will have to compromise upon profits in order to meet requirement of shipping.
iii. To move the equipment within the country will not be possible.
iv. Will have to put more money in shipping the containers with other shipping modes.