INTERNATIONAL LOGISTICS AND SUPPLYCHAIN

MANAGEMENT

ANSWER 1.

A global supply chain is explained as it's the worldwide system that a business uses
to produce products or services. It's the process of guaranteeing the secure and
timely delivery of everything from raw materials to finished consumer goods as they
travel from manufacturers to suppliers and wholesalers, retailers and other
distribution points.

Global supply chain operation involves planning how the entire supply chain will
serve as an intertwined total, with the end of generating an optimum position of client
service while being cost effective as possible.

As in our case, an Indian manufacturing firm of ready-to-eat snacks having a pan-

India distribution network is planning international expansion, so there will be factors
affecting the supply chain in exporting its products, those factors are mentioned
below: -

• Logistics cost: Supply chain functions involve a number of costs right from
yield till distribution of goods. Supply chain management is concentrated on
stabilizing the logistics cost structure. Still, the conception of cost is relative to
the value of freight being transmitted. Cost considerations in logistics are
more diverted to goods that have a low value than those with high value.
In our case, our company must consider this factor as it is related to the cost of
logistics. Cost is important when you are running a business, hence we need to find
a justifiable cost while exporting our product to Sri Lanka.

• Transit time: This factor directly affects in inventory carrying costs and
inventory cycle time. Thus, cargos having a high value or perishable
particulars are transported through the fastest and shortest route possible.
In our case, we do not need to care about the transit time as our product is not
perishable nor of a high value. There is a straight route between India and Sri Lanka
so we do not need to worry about the transit time.

• Reliability: There are several supply chain management systems that put
further priority on the safe and timely appearance of freights at the destination
rather of concentrating on reducing the conveyance time. Thus, if shipments
are harmonious, supply chain cycles can be controlled efficiently by having
more supplies in transport.
In our case, the management needs to be reliable for the export of the product to Sri
Lanka as the safe arrival of the product is more important than reducing the transit
time.
 • Supply chain risk: A global supply chain system would calculate on low-
threat routes over high- threat routes. It's a threat that a particular payload
would arrive at its final destination as per the anticipated costs, time and trust
ability. There may be a threat of possible damage or theft of payload.
In our case, this factor applies to every mode of transportation of the product, so for
the peace of the mind the most a business can do is buy an insurance for the cargo,
even you can manage the time delay, reliability and cost but you cannot manage the
theft of your product. So, to bear less losses you must take the cargo insurance.

A supply chain strategy is like a roadmap that helps companies get their products to
clients with as little conflict as possible. This plan ensures that every phase of the
supply chain is optimized, including the sourcing of accoutrements, manufacturing,
delivery and logistics.

There are different supply chain strategies some of which are mentioned below: -

• Leverage: This is the balance that associations need to maintain between

cost reduction and enhancement of service situations. For instance- The
company tends to reduce the cost of the production and in return train the
workers to give optimum level of service to the clients.

• Communication: It refers to the robustness of a two- way dialogue between

the association and its suppliers. This also means that the communication is
necessary between both the parties.

• Efficiency: This relates to the operations and process efficiency of the

association. Efficiency is the key for excellent work in any association.

• Innovation: This refers to the exertions of the association to introduce its

products and services during day-to-day operation. Innovation is the key to
advancement for every business in their respective fields.

• Risk management: This refers to the identification of internal and external

pitfalls while managing the supply chain and steps which the association
takes to alleviate them.

• Continuous improvement: High performing associations look at ways and

ways to continually enhance their operations. These may impact the
association internally or may affect its external stakeholders.

These are the strategies that I would suggest for the company exporting its goods to
Sri Lanka. In my opinion these will help the business to grown in the international
market.
ANSWER 2.

Direct to consumer is when manufacturers or producers vend their products online

directly to end consumer. D2C is an omnichannel experience, it has further control
over brand character and the D2C business possessors tends to truly understand
their clients based on their feedbacks.

As XL brands wants to differentiate itself from the others based on the delivery
experience. They are also looking at a superior delivery experience to provide it a
source of competitive advantage. So before suggesting the best choice we must
understand both in-house and outsourcing of logistics.

So, here are the pros and cons of keeping shipping in-house and outsourcing
shipping:

In-house shipping-

Businesses using the in- house delivery model hire, manage and operate their own
delivery structure. They've a storehouse or a devoted space for storing, managing
and delivering stock, and they operate delivery vehicle line. This model gives
company ultimate control over all the delivery functional functions but bear expertise.

PROS of in-house shipping:

• Control: When you choose to handle shipping yourself, you have complete
control over the entire process. This means that you can offer the perfect
delivery service for your shoppers. With many of the shoppers choosing to
buy from the retailer again based on a pleasant shipping experience, the
value of the perfect delivery is huge.

• Facilitated Communication: An in- house crew understands your company’s

values, system and anticipated position of communication. This reduces the
chance of important information getting lost as a result of bad communication.
Some businesses also find it easier to adapt shipping strategies when lesser
people are involved. When running shipping in- house, you get to work with a
smaller crew.

CONS of in-house shipping:

• Cost: In- house shipping can bring further than anticipated, especially as the
scale of shipping increases. The costs frequently change throughout the time.
Shipping volume increases during vacations and can vary at other points as
well your current supply chain needs to be flexible enough to handle demand
increases and gauge back when demand decreases.
 • Accountability: Part of having complete control over your shipping is having
to assume responsibility for any miscalculations or breaches. While a positive
shopping experience increases the chance of client retention, a bad
experience could mean losing repeat business. A poor 3PL mate can assume
the blame and make amends. However, your business has to assume
responsibility and deal with the consequences, If this happens in- house.

• Logistics: An effective shipping strategy requires logistics. This means you

will need in-house supply chain logistics experts.

Outsourcing shipping-

Companies that lack the finances or experience needed to run an in- house delivery
operation can outsource delivery logistics to a third- party company. Currently, third
party delivery services include an adding variety of delivery results such as drop
shipping, fulfillment, last- mile courier services and digital operation platforms.

PROS of outsourcing shipping:

• Reduced costs: While you'll have outspoken costs to pay when using a third-
party shipper but in a long term you'll be happy that you chose outsourcing
because the long- term cost will be reduced.

• Expertise: 3PL companies are comprised of supply chain experts that have
experience managing supply chain for a variety of businesses. Some 3PL
companies also have special experience that you might not be suitable to use
in- house.

• Scalability: One of the biggest advantages of using 3PL provider is

scalability. These businesses can gauge shipping higher or lower at a
moment’s notice, guarantying that fund aren’t wasted. For growing
businesses, scalability is essential.

• Beneficial Relationship: A 3PL provider benefits from seeing your business

succeed. With that in mind, they ’ll work your business to produce an effective
long- term strategy for shipping.

CONS of outsourcing shipping:

• Long-term costs: A third- party shipper relies on having long- term

connections. Still, some businesses have fund to produce their own shipping
strategy, which would make 3PL providers redundant.

• Representation: Shipping plays an important part in buying process for the

majority of online customers. However, a paperback will be less likely to buy
commodity from you again, if something in the shipping process goes wrong.
 • Communication: Unfortunately, not all 3PLs meet the norms, and indeed the
best third- party businesses can make miscalculations. When using a third-
party company, you're introducing an excess step to your shipping process.

In my opinion the XL brands must use the in-house shipping as their motive is to
differentiate themselves from the competition and wants to provide a superior
experience to the end consumer, so both of the motives will be only achieved by the
In-house shipping.

To support my opinion, I will state the facts that in in-house shipping you have more
control over the shipping process so, you can change it in the way that you think will
differentiate the brand from its competitors. As to achieve the second objective in in-
house shipping they have facilitated communication among the employees so they
have a superior grip over the shipment hence, they will achieve superior delivery as
they are delivering the product themselves.

ANSWER 3. A

As the company is interested in setting up the operations in India by importing and

selling its product range of glasses, lenses and frames so to import the materials
there are different requirements and procedure that is needed to be followed:

The requirements and documentation to import the products in India are as

follows:

• Import licensing requirements:

Over the previous decade, India has slowly made it easier to import products.
Utmost particulars fall within the compass of India’s EXIM Policy regulation of Open
General License (OGL). This means that they're supposed to be freely importable
without restrictions and without a license, unless they're regulated by the vittles of
the Policy or any other law.

Imports of items not covered by Open General License (OGL) are regulated and fall
into three categories:
o banned or prohibited items,
o restricted items requiring an import license
o “canalized” items, importable only by government trading monopolies

Capital goods can be imported with a license under the Export Promotion Capital
Goods plan (EPCG) at reduced duty rates, subject to the fulfillment of a time- bound
import obligation. The Export Promotion Capital Goods plan now applies to all
industry sectors. It's also applicable to all capital goods without any threshold limits,
upon payment of a five percent customs duty.
A duty impunity plan is also offered, under which imports of raw accoutrements,
intermediates, components, consumables, parts, accessories, and packing
accoutrements needed for direct use in products to be exported may be imported
duty free under different license orders.

• Import declaration:

Importers are needed to furnish an import declaration in the specified bill of entry
format, telling full details of the value of imported goods. All import documents (e.g.,
ex-factory checks, freight attestation, insurance certificates) must be accompanied
by import licenses. This enables customs to duly clear the documents for timely
significances. Importers must include a copy of the Letter of Credit to record
payment for significances. Typically, this document is attested with the issuing bank.

The procedure for importing the products in India:

• Obtain IEC: Prior to importing in India, every business must first gain an
Import Export Code (IEC) number from the regional joint DGFT.

• Ensure legal compliance under different trade laws: Once an IEC is

allocated, businesses may import goods that are biddable with Section 11 of
the Customs Act (1962), Foreign Trade (Development & Regulation) Act
(1992), and the Foreign Trade Policy, 2015- 20.

• Procure import licenses: To determine whether a license is demanded to

import a particular marketable product or service, an importer must first
classify the item by relating its Indian Trading Explanation based on a
Harmonized System of Coding or ITC (HS) bracket.

• File bill of entry and other documents to complete custom clearing

formalities: After attaining import licenses, importers are needed to furnish
import declaration in the specified Bill of Entry along with (PAN) permanent
account number based (BIN) Business Identification Number, as per Section
46 of the Customs Act (1962). A Bill of Entry gives information on the exact
nature, precise volume, and value of goods that have landed or entered
inwards in the country.

• Determine import duty rate for clearance of goods: India imposes basic
customs duty on imported goods, as specified in the first schedule of the
Customs tariff Act, 1975, along with goods-specific duties similar as anti-
dumping duty, safeguard duty, and social welfare surcharge. In inclusion to
these, the government levies an integrated goods and services tax (IGST)
under the new GST system. The IGST rates depend on the bracket of
imported goods as specified in Schedules notified under Section 5 of the
IGST Act (2017).

These are the requirements and the procedure to import the products in INDIA.
ANSWER 3. B

Warehousing is the process of storing physical inventory for trade or distribution.

Warehouses are used by all different types of businesses that need to temporarily
store products in bulk before either dispatching them to other places or respectively
to end consumers.

There are different types of warehouses:

• Distribution center.
• Pick pack and ship warehouse.
• Smart warehouse.
• Cold storage.
• On demand warehouse.
• Bonded warehouse.

Requirements for warehousing are as follows:

• Inbound and outbound: There are specific warehouse management system

features included within WMS platforms that are made to handle the veritably
first step of the warehousing process working with vehicles bringing in
physical products and materials. Manifest tools for exchanges help input data
into the inventory system and prepare the warehouse for incoming goods.
Also barcode scanning, radio frequency ID trailing and other physical
processing help organize particulars for storehouse.

• Order fulfillment and management: Optimizing the order and fulfillment

process is among the crucial warehouse management system features. By
controlling the inflow of a product through your warehouse, a WMS can
enhance order operation. Re-order features give users the capability to
automatically order parts or products that routinely need re-supply. Some
warehouse management platforms give access to carrier networks that can
speed up shipping practices.

• Tracking and analysis: Numerous of the best warehouse management

solutions give features that allow companies to aggregate business
intelligence from warehouse operations. Real- time shadowing is a major
asset to companies, particularly when it comes to maintaining inventory. This
enables you to view your inventory situations in real- time, so you ’re always
cognizant of when you ’re low on certain particulars or if you have further in
stock than necessary.

• Transportation management: Though transportation operation can be

considered to be a separate order in their own right, WMS software tends to
have some TMS features thrown in. TMS software can directly affect and
enhance warehouse operation as an integral part of supply chain
management.
No, these requirements wouldn’t be different from the retail channel in any way.

As our business is of imported goods the business will need a “Bonded warehouse”
also called “customs” storages, a bonded warehouse is a structure in which imported
goods may be stored, manipulated, or suffer manufacturing operations without
payment of duty for five times from date of acceptance. The duty on imported goods
can be truly high so the bonded warehouse allows the products to be vended first,
and also duty is paid from the proceeds of the trade.