Transportation Plan for Exporting Chocolates

from Switzerland to Singapore

Prepared by:
Ibrahim El Hajj
Agenda 2

• Problem Statement • Time Analysis

• Order Details • Payment & Document Cycle
• Product Description • Special Requirements
• Order Flow Cycle • Risks Analysis
• Transport Route • Rational
• Cost Analysis • List of Documents
Problem Statement 3

To draft out a Transportation Plan for Exporting Chocolates

from Switzerland to Singapore
Order Details 4

Freight Forwarder: Seller:

Kuehne & Nagel Inc. Lindt & Sprüngli (International) AG

Dorfstrasse 50,City Schindellegi Seestrasse 204, CH-8802 Kilchberg
Switzerland Switzerland

Buyer:
Shipper:
Maersk Line Inc. SP Jain School of Global
Herostrasse 7,Postfach 1432,Zurich Management 10,Hyderabad
Road, Off. Alexandra Singapore
Order Details 5

• Origin Port:
Port Antwerp (BE), Belgium

• Destination port :
Port Singapore (PSA), Singapore

• Order Quantity:
1000 kilogram (Unit Weight 100 gms)

• Payment Terms:
Letter of Credit (Sight)
• INCO Term:
Ex-works (Seestrasse)
 Product Description : Lindt-Lindor Chocolate 6

• Type: Premium Truffle Type Chocolate

• Speciality: Filled With Liquid Cream and assorted

• Life Period : 6 Months (B.B.)

• Temp. for Transport: 10-12°C

• Packaging: Thermal Insulated Temp. Controlled

 Packaging Requirements 7

• Packaged in aluminum foil, composite

films, paper and plastic trays and then
packaged in mill and corrugated board
cartons.

• Strapped with plastic or metal

strapping

• Conventional pallet sizes

(800x1200 mm and 1000x1200 mm)

• Temperature Controlled Containers

Special Requirements 8

Cargo handling Storage Space Requirements

1. Cool, dry. To provide protection against solar
1. The goods be protected from Moisture radiation, chocolate is best stowed below deck.
2. NO stored near heat sources (heated double bottom
2. Damp conditions reduces quality of the
tanks, engine rooms), as its melting point is approx. 28°C.
chocolate Temperatures Variation

3. Packaging sensitive to moisture and loses

stability. Cargo Securing
3. Cargo is impact- and pressure-sensitive, must be secured in
4. Since the cargo is relatively sensitive to such a way that they are prevented from damaging each other.
breakage,
5. the packages must be handled with appropriate
care. 4. Spaces between packages must be filled, to prevent slippage
or tipping. By selecting the correct packaging size or cargo unit ,
holds can be tightly loaded (without spaces).
Transportation Route – Seestrasse - Port Antwerp - Singapore 10
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Our Rational 13

• Road Transport from Seestarsee to Antwerp

 The frequency of Ships at Port Antwerp is twice as compared to Basel Port,

Switzerland

 Being EU region free flow of transportation

• Choosing Kuehne & Nagel as Freight Forwarder

 Across EU reach

 Reputed brand in Refrigerated Cargo Handling (EU)

 Dedicated DC and cargo handling at Port Antwerp

Our Rational 14

• Choosing Maersk Line Inc. as Shipper Agency

 Direct Shipment to Singapore

 Reputed Brand in field of Shipping

 Providing best possible Delivery Time (As on 17/09/2014, Maersk Line official
Website)

• Choosing INCO Term: Ex-Works (Seestarsee)

 Chocolate Companies generally does not engages in outward logistics

 CMA-CGN has a EU wide reach and integrated Logistics Infra.

 Lindt Inc. is in more dominant bargaining PMosGiBt-iGoLnSCM

List of Documents 15

S.No. Document Type Issuing Authority

1. Bill of Lading (Antwerp) Captain of Ship (Maersk

Line)

2. Certificate of Origin Chamber of Commerce, Switzerland

3 Packing List Lindt & Sprungli

4. Purchase Order SP Jain School of Global Management

5. Commercial Invoice Lindt & Sprungli

6. Shippers Letter of Instruction Kuehne & Nagel

7. Letter of Credit (Sight) EBD Emirate, DXB

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 Risks factors – Temperature, Odor, Humidity, Contamination 16
Temperature Risk Factor -Odor Risks
Risk Factor - Temperature Risks
range
Active behavior Moisture and high temperatures
Storage and transport may cause the odor to turn musty.
10 - 18°C temperatures are 10 -
18°C

Favorable travel Passive behavior

temperature Risk of condensation Can absorb foreign odors very easily
if refrigerated cargo is Unsuitable packaging materials may
4.4 - 7.2°C result in an unpleasant off- flavor.
unloaded in a warm
environment

Risk Factor Humidity Source Risk Factor- Contamination Risks

Excessive humidity can cause

Relative humidity 65 - 70%
sugar bloom. Active behavior
Chocolate does not cause
Moisture dissolves the sugar, contamination.
Water content 0.5 - 1.6%
evaporation of the water
causing the sugar to
recrystallize
Passive behavior Chocolate is extremely sensitive
Maximum Equilibrium Can turn chocolate musty, to contamination.
70% It must be protected from dust,
moisture content moldy and rancid dirt, fats and oils.
Risks Factors –Mechanical Influences and Ventilation 17

Ventilation
Mechanical influences

> Handled with appropriate care- Sensitive to
breakage
> High stresses may lead to damage to carton walls
and edges
> Packages must be secured appropriately and
secured in the door area so that they do not fall out
of the container.
> If the product is at "shipping dryness", i.e. the water
content of the paperboard cartons is 5 - 8%, ventilation
is not normally required.
>Risk of cargo sweat- wetting of the paperboard
cartons and thus in a reduction in stability and strength
and depreciation of the product itself.
> Recommended ventilation conditions: air exchange
rate: 6 changes/hour (airing)

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Personal Carriage 18

Factor Description

Ordering Mode Online (Company Website)

Delivery Time 2 days to 2 weeks (Buyers Choice)

Payment Terms Advance Payment

Freight, Customs and Paid by Seller

Insurance
Maximum responsibility Seller

INCO Term DDP (Delivered Duty Paid)

Mode of transport Usually by Air (Chosen By Buyer)

Delivery Location Buyer’s doorstep

Assumptions 19

 Cost are taken on the basis of online Information and past cases

 External Relations of Lindt Inc. are good with all shippers

 The time for port clearance at Singapore and Antwerp is 1 day

 External Environment is stable

 Buyer bears all the cost of transportation and Customs

 Current order is fulfilled from stock

 All the stakeholders work in healthy collaboration

Thank You for your time!

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