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Strategic Supply Chain and Logistics Management
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The Case of Foodie Global
Introduction
Foodie Global (FG) is a massive retail hyper store. It was established around 50 years ago as a family grocer in Manchester, UK. The organization has proliferated over the last ten years, opening stores in London, Oxford, Liverpool, and Birmingham. The organization has also ventured into the nontraditional production of new lightweight folding bikes called Foldie Smart. As discussed in this paper, they have gone through their fair share of financial ups and downs in the last few years.
Case study A
Analysis of supply chain management
In this case study, I will analyze some principal theories that can help the organization realize its objectives. I will also look into the principles of supply chain management and in-depth concepts that will help the organization and help resolve the challenges at hand. In undertaking a corporate venture, it’s advisable to have robust, conversant, and innovative people in the sphere of operations. However, reaching an agreement on an idea necessitates essential factors. Nevertheless, creative ideas by business members are encouraged but prone to vetting, all theories being plausible. The business must lay out a strategy as a draft for action in the implementation stage.
Under strategy design, the idea is critically scrutinized under the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. This helps in making maximum use of what an organization has got. This allows an organization to reduce catastrophe’s likelihood and remove dangers that would otherwise catch you off guard. Where external threats to the idea are looked into, the possibilities of rejection by customers, the various competitors that might outdo the firm and other coercions are considered. Foodie Global, through its Chief Executive Officer, Lisa Foodie, took a promising approach in hiring one of the most experienced ICT experts in the country, Alan Harvey. This, they thought, would revamp their business and help them compete well as Mr. Harvey has a healthy relationship with global Automobile companies. She thought it was the best of ideas to create a plan that would set them apart from the competition and allow the organization to compete in the market effectively.
For large hypermarkets like FG to be successful, there must be an excellent supply chain network. Some of the principal theories that the company must consider are; firstly, the company must adapt the supply chains to the customers’ needs. The supply chain professionals and business people have the mandate to understand the customer better. This brings the idea of customer segmentation. This should not be done to make profits. The best way to carry out this plan is through service needs. They can be categorized into; order fulfillment and sales and merchandising needs. Although focusing on customer needs doesn’t work effectively because the emergence of new products from competitors lets customers know what they need (Sri, H., 2020. p.584).
Logistics networks need to be customized as a way of growing an organization to become a global force. Customers and suppliers play a big part because the company would need the best supply to ship in different parts of the world. It’s important to remember that buyers from various countries may require other products. For example, the American market will purchase more fries than the Chinese market because fries are America’s favorite foods.
Supply chains and the business strategies of the organization are interconnected. This means that Foodie Global should lay a better approach and a clear vision. Establishing an organizational system will help establish priorities and set the direction for the organization, and be vital in the overall achievement of my organizational short-term and long-term goals. This will define my view of success and prioritize my corporate activities to make that view a reality. It is critical to strike a balance between an organization’s short and long-term objectives. At any given time, one should have an equal number of short-term and long-term goals. Long-term goals are vital, but one should keep in mind that they take a long time to accomplish. If the organization does not have any short-term goals to help the employees and their leader feel accomplished, it will be easy to get disheartened about their long-term ambitions.
On the other side, having just short-term ambitions and no long-term goals is unhealthy.
If you don’t have long-term plans to keep you focused on the future, short-term goals don’t add up. Having a long-term goal might help relieve the stress of tedious work while completing a short-term goal by reminding you that there is a bigger picture. Long-term and short-term goals drive us to be more focused and productive. Prioritizing between long-term and short-term goals, on the other hand, can become a challenging undertaking (Sri, H., 2020. p.590).
In addition, FG needs to differentiate products to the customer’s demands. The “perfect order” must be delivered every time a customer orders. This makes customers happy. Additionally, providing a good product the first time has many advantages; it doesn’t require much energy and costs in fixing errors and minimizes extra assets, making the company move on the right path to pursuing perfection. This would only be made possible by the company accomplishing several things; firstly, the company must have products available for order. Then, the orders must be correctly processed and shipped through the specific means that the customer requested. They should also provide the customer with a shipping number and a progressive shipping notification. The company should make a complete delivery without damage on time and bill the customer correctly.
For Foodie Global to grow fast and reclaim its lost glory, features of an integrated approach must be addressed. Some of them include; targeting a whole new set of customers in countries where they are yet to reach. The company should also develop better communication to help attract customers. A customer care hotline should be established to ensure that customers are attended to all the time everywhere. The company must also address underlying issues of system failure and delays in making decisions. Customers want quick responses whenever they are enquiring about products.
Case study B
Benefits of ICT solutions
Information and Communications Technology (ICT) plays a significant role in the growth of an organization. Foodie Global, through its CEO, decided to hire Alan Harvey as the new supply chain manager. Although he’s fresh to the retail sector corporate, he has a vast knowledge in ICT, having worked in several manufacturing companies in the past. In addition, Alan has recognized long-term connections with international automobile dealers. This has been contributed by his approach to allow ICT to develop communication and collaboration. Lisa decided it was in the company’s best interests to hire Alan in her quest to make FG compete with their rivals.
When all companies and organizations have resolved to trade online, hiring Alan was the best decision the company could make. Generally, ICT is an essential tool in procurement. A company has to increase the number of desktop computers, tablets, laptops, software networks and fixed and mobile telephone systems. ICT can help the company increase efficiency, reduce costs, increase competitiveness in the marketplace, and improve overall decision-making.
ICT would play a significant role in FG. It would allow the company to process, store, analyze and share enormous quantities of data. This makes it easy for employees and managers to make quick, accurate decisions. Therefore being able to effectively manage operations and make rapid responses to threats and opportunities alike. ICT has made other companies move ahead of FG in delivery and general welfare (Yalcin, H. 2020, p.127).
Any corporate entrepreneurship may find it hard to carry out its operations without well-skilled ICT personnel. A venture may seem enticing in its conception and development stages but fail in actual performance. The product may fail to reach the anticipated sales hence prove futile.
Corporate entrepreneurship in most organizations is mainly hindered by fear of failure. To mitigate this, a team of skilled people should be kept in charge of projects. This way, the project will be handled by people who specialize in the matter at hand, therefore, warranting success.
Developing a project may take over employees’ normal activities to even halting some organizational operations. This forces the managers to bring in external teams to deal with the project. Where by some can’t be trusted to have the company’s vision at heart, which means a waste of time and resources. An incompetent team may fail to deliver the project on time; these delays, in turn, affect all the set plans by the organization. The executives should make it their responsibility to keep afloat through the process to ensure eminence. It should also be a team requirement to coordinate and always report to the executives throughout the process (Yalcin, H. 2020, p.130).
Moreover, ICT improves the quality of customer service. This includes quicker responses. Foodie Global can have agents to answer customer calls and provide comprehensive products, including product preferences and purchase history. This helps in dealing efficiently with inquiries and making customers satisfied, increasing chances of making future purchases. Lastly, ICT helps boost financial performance as the company can reduce costs, improve profitability and increase revenue. For example, videoconferences will significantly reduce the costs of traveling and hotel stays as the relevant stakeholders will attend the meetings from home or place of work. This will reduce revenue spending and help the company save much money, consequently contributing to overall profitability.
The other advantage of having good ICT connections is the provision of security. Nearly all companies and organizations globally have CCTV surveillance. This reduces cases of theft and armed robbery. If a theft occurs, the culprits are sure to be hunted using the information from the CCTV cameras. Also, this helps monitor day to day running of the company. The CEO, Lisa, can take a closer look at all employers and observe their daily routines. This will enable her to notice lazy employees and those who are not serious about work. It might also help workers become serious for fear of being caught idle. Therefore, enabling every employee to work hard will help in increasing the company’s overall output (Yalcin, H. 2020, p.125).
Another advantage of ICT is increasing communication inside the company’s premises. This enables the company to respond quickly to business opportunities. Good communication can help create various teams, which can deliver quick strategic projects, thus making significant overall growth inevitable. ICT also enables mobility. This is realized by ensuring that employees who are not based at the office have equal data access to their office-based counterparts. Customers will be provided with quality sales representatives and field technicians, giving the company a huge marketing boost. Switching costs occur as a result of ICT. A strong competitive advantage is developed when a company introduces an online scheme for ordering, payments, or delivery. This will prompt their competitors to match them to provide the same services, creating a substantial advantage to the incumbent. The benefit is called switching costs which have become essential in a strategic network environment.
ICT would also make FG a leading entity in marketing automation. This is realized by identifying the frequent emails and using gadgets to help identify them, and then following them up with a series of phone calls or text messages. Several techniques can be considered in procurement to help digitally provide solutions. A tender application must have unique data stored. Also, the number of suppliers taking part in public procurement bids should be analyzed effectively.
Case study C
JIT applications and its contributions to supply chains
JIT is a supply chain management strategy widely applied in various business firms; it aims at increasing inventory turnover while reducing inventory holding costs. This method is all about working closely with the suppliers to order and receive goods from them only when needed and at the soonest time possible. JIT is crucial to firms, especially goods manufacturing firms because it reduces production loss while increasing production efficiency; this becomes possible when firms receive goods of their choice from their preferred suppliers only when they need them. The advantage behind this is to lower the overall inventory costs. Other benefits associated with JIT in the supply chain process are; firstly, it ensures time is widely used by minimizing the time required when receiving goods and transporting goods from the suppliers. Secondly, it helps in reducing the firm’s capital tied up in the stock. Thirdly, it helps in streamlining the firm’s production systems, hence saving more resources. However, this strategy demands accurate forecasting of all the requirements. JIT, as an inventory management method, was initially developed and implemented with the core objective of meeting the demands of the consumers experiencing minimum delays. The technique was invented by Taiichi Ohno (regarded as the father of JIT) within the Toyota manufacturing plants. JIT plays a very significant role in the overall supply chain management process. It contributes mainly to reducing inventory costs by ensuring goods are received or moved as soon as possible only when a firm needs them. An excellent and well-managed JIT system is therefore very fundamental in reducing all storage-related costs; hence goods are kept on hand until a particular firm requires them.
A well-managed JIT system is fundamental to suppliers and the overall supply chain process. Through a JIT system, suppliers can receive an electronic message to deliver specific goods to various firms when needed. This significantly contributes to improving production efficiency and reducing time wastage in the whole process of goods transportation. Through Automated purchasing, business transactions are simplified and made more efficient; this is because there is automation in all the calculations related to existing inventory and production levels.
Implementation of JIT
JIT, as a supply chain management strategy that means making orders on goods and receiving them only when they are needed, helps firms lower the overall inventory costs and the cost involved in moving the same goods. Strictly monitoring of the supplies as well as deliveries timing replacement when needed is the basis for JIT inventory management. When it comes to JIT inventory management, technology is the key. It helps in the appropriate measurement of the demand and supply of goods while reducing errors in forecasting. While there are various ways to assist in the JIT inventory management, a complete integrated Enterprise Resource Planning system can best help serve this purpose. Since inventory errors are common, an effective way to eliminate this problem is by using bar code scanning and an electronic data interchange (EDI). It is highly recommended for large firms to sync their computer systems with their suppliers; this in return ensures suppliers monitor inventory levels at all stages of the supply chain.
Regular supply chain review, which means building long-term relationships with suppliers, is vital in JIT inventory management. Strong and long-term relationships with the suppliers put a firm in a position where it can meet its tight schedule because of the efficiency created for ordering and receiving the supplier’s goods.
Being transparent with the customers is suitable for JIT inventory management; it helps meet their orders in the required timeframe. JIT inventory management needs assistance from outside; this may mean hiring a competent person capable of overseeing the various aspects of supply chain management and production processes. This forms the basis for increasing the operational efficiency of the firm. Lisa Foodie, the CEO of Foodie Global, needs to have a well JIT inventory management system that will assist in delivering bikes on the required time. These will be possible if she considers the following; installing and utilizing the relevant technology in her firm, creating long term relationships with her suppliers, hiring competent personnel in the supply chain management area, being honest with her customers, and syncing computer systems with her suppliers (Bikeinc manufacturers). The application of all these will be a significant step in reducing lead times associated with selling her Foldie Smart bikes to her customers. This will positively impact the productivity of the Foodie Global firm.
Despite the many advantages associated with JIT inventory management systems, there exist some setbacks regarding the same. Some drawbacks related to the JIT application include but are not limited to these; Firstly, there is a high risk of running out of stock because the stock is based on the forecasts of the current demand. Any error in forecasting the demand may subject one to a situation of not availing the proper supply to the customers.
Secondly, high suppliers’ dependency subjects one to problems such as delays on customers’ goods receipt. The result of not meeting your customers’ expectations is completely losing them, which again means a significant loss to the firm. This explains why establishing solid relationships with reliable suppliers are crucial so that you can meet the customers’ demands on time.
JIT Inventory management requires more and complicated planning because most sales are based on seasons. Due to changes in consumer demands in some periods, prior planning while ensuring that suppliers are capable of meeting tight schedules is the key.
Lisa Foodie, the CEO of Foodie Global, to make sure she has minimized or combat all the setbacks associated with JIT applications, I recommend she adopt the strategies such as; planning earlier with her suppliers on matters regarding the supply of the bikes, continually establishing solid relationships with her suppliers to make sure not even a single day she will run out of stock.
Case study D
Benefits of a supplier selection approach/ strategy
A well-developed supplier section strategy helps buy goods from a carefully selected group of suppliers. This has a couple of benefits: Firstly, as the firm’s CEO, you are in a position to easily control your suppliers for ready availability of the consumer goods. Secondly, your firm is recognized by your suppliers hence prioritized in case of goods supply. Thirdly, As the CEO, you are in the proper position of making transaction deals with your suppliers; this is an added competitive advantage to your firm. Through supplier selection strategy, firm owners are able to evaluate, identify and contract the right suppliers suitable for their businesses. The core goal behind the supplier selection strategy is to maximize the overall value to the purchasers while reducing their purchase risks. Additionally, this is geared towards establishing long-term relationships with the suppliers.
Some critical factors relevant to the supplier selection including but are not limited to these;
Affordability is essential to consider how much to pay for your suppliers; this is good, especially when you want to ensure quality and reliability from suppliers. Affordability is highly recommended to start-up businesses or firms. Reliability and quality from your suppliers are other vital factors to consider if customers’ trust is to be established. Customers will blame the seller of the product instead of their suppliers; therefore, it is good to ensure quality from the suppliers. Additionally, to ensure the reliability of goods from your customers, it is always good to establish strong relationships with suppliers to avoid any delay in the supply of consumer goods.
Flexibility, Flexible suppliers are good at responding to changes in customer demands and sudden emergencies. This is ideal for creating reliable trust from your customers. Suppliers offering a quick delivery service are critical when it comes to reducing the time required in attending to the customers.
Clear communication with your suppliers will determine whether to receive a timely supply of consumer goods. This again helps exchange information regarding any required advice or warning on the supplied goods. In order to ensure a good working collaboration with suppliers, communication is the basis.
Assessing the Financial stability of your suppliers is very important when selecting suitable suppliers with sufficiently strong cash flow that will be able to deliver what you want when you need it, and your firm will progress successfully. This explains why checking the credit status of your suppliers is critical for selecting the suppliers.
Regarding Foodie Global firm, Alan Harvey, as the supply manager, needs to consider the above-mentioned critical factors to evaluate his suppliers effectively and, above all identify those who align with his firm’s long-term objectives.
The establishment of excellent buyer/ supplier relationships and nurturing is crucial for the long-term success of any firm. Firms that rely most on raw materials for production purposes are affected most by the buyer/ supplier relationships. A strong supplier relationship must exist for the smooth flow of the requested goods from the supplier. Having a Well-developed buyer-supplier relationship is good for the forward progress of the transaction partnership. The buyer and supplier relationship pyramid comprehension put one closer to appreciating the benefits of vendor /supplier partnership. However, it is good to note that it requires a strong base for a solid buyer-supplier relationship to be built.
A strong buyer-supplier relationship, therefore, calls for these critical factors;
A practical and open communication between both the buyer and supplier is core to creating a solid relationship; in other words, there is mutual understanding. Effective two-way communication enables both the buyer and the supplier to solve any critical issue that arises when carrying out their business transactions.
When respect is part of the buyer-supplier relationship, they will both feel part of the relationship and respect. A feeling of mutual respect creates room for more options regarding the transactions carried by both parties. A condition of mutual respect is ideal for successful negotiations to occur, which results in successful transactions for the benefit of both parties. Openness and honesty, these two are core to any buyer-supplier solid relationship to be built. These two make both parties transparently share all the information for their own benefit. By sharing crucial information with some openness and honesty, it is possible to solve issues along with their business life.
Fairness is another essential virtue to embrace for any buyer-supplier relationship to thrive. The benefits of their transactions need to be shared equally for both parties to feel part of the game. As the supply manager, Alan Harvey should be keen on establishing a solid relationship with his suppliers. Outstanding negotiation skills are vital for winning any transaction deal. Alan Harvey needs to utilize all the possible negotiation techniques as part of his negotiation strategy for him to win their contract. Excellent negotiation skills involve many things, and by combining them, any negotiation process is considered successful. As part of the concepts applied in a negotiation process, a Knowledge of BATNA is key to establishing a common ground for both the purchaser and the buyer, commonly known as ZOPA. While negotiating, consideration of each party’s preferences is another essential element that is highly likely to drive a negotiation process in a successful direction. If both parties consider and respect their preferences equally when making a deal, the main goal of the negation is successfully achieved. Additionally, fairness is part of any business ethics and should prevail for a successful deal when negotiating.
Both the buyer and the supplier need to possess practical negotiation skills that are vital for all their business transactions. These practical negotiation skills will help them carry out their transactions without any disagreements or solve any dispute occurring between them regarding their transactions. Alan Harvey as the supply manager of this fast-growing firm should embrace all these effective negotiation skills as part of the negotiation strategy to make the best deals for his firm. These best deals will definitely see the firm making forward progress in terms of productivity.
Case study E
Functionality of several areas before concluding to a new port option
Before rushing to a conclusion, there should be a thorough investigation to identify the preferred outcomes in every situation. In this case, Lisa has decided to have a change in the logistics and transport system. To ensure that this action is effective, there should be an exploration to explore which functionality area will mainly help them function well in consideration of the new port option. Failure to examine several areas before changing the logistic and transport system some challenges may be experienced. It is essential to understand that transport modes are mainly designed for the intended business to be performed.
In this case study, Lisa should have a good look at the technology mainly used for the port facility. It is also essential to be aware of the distance of the port from where their business is primarily operating. There should be a high consideration on the preferred mode of transport to be used. Easy movement of their goods should also be considered, and the capacity of the port should be highly regarded to deal with the high volumes of the imports which Foodie Global will be dealing with. Lisa, in this case, the study should have to consider more on these characteristics to have a clear picture of coming up with a new port transport option.
When changing from one occasion to another, there are usually possible challenges that have to be experienced. For instance, in this case study for Foodie Global changing to a new port selection, some challenges have to be shared (Tripathi etal., 2021, p.5). Common challenges which may be encountered in this case are that without considering the base port where a ship has to berth, it can reduce the turnaround time which the vessel could mainly take. Failure to check on this it will be a challenge on the turning process of the ship. Failure to be concerned about the strategic port location could be a challenge on the weather pattern, and it will have to interfere more with the functionality of the new port option.
Secondly, a challenge on the port fees may be a significant problem to their business. The former port system might be cheaper than the new port option, which will lead to high expenditures in their transportation system. Lisa needs to be aware that the seasonality of some ports might have many impacts on their suppliers before setting up a new port system. This will mainly affect their shipment process in a year, and it will be a more significant challenge if the new port system will not be considered on the note to the seasonality.
Thirdly, the organization needs to consider the deeper of the new port system it is. An extensive port system will effectively accommodate many ships, and failure to think this there might be a challenge on how the port will have to adjust their ships. Having an excellent accommodate port will mainly ease performing their business perfectly and according to their customs as the port area is required. The integration in the vessel loading might be a challenge to the new port, which will mainly affect this organization’s working conditions.
Lastly, turn around and traffics in the new port selection have to be considered a lot. The new port may have a challenge in loading and unloading containers. Due to this, it will be a challenge for Foodie Global to get the products on time as they intended. Truck turnaround time is one of the factors which have to be considered in port logistics (Vural et al., 2020, p.37). Having a short turnaround time for the new port will be economically viable for the organization. This will ensure quick loading and unloading processes hence minimizing time and resource wastage for the company. It is essential to be aware that the new port logistics will have an increased turnaround time there will be an impact on every individual who is part of the supply chain.
For the company to be successful with the new port logistics and transport, it has to evaluate its mode of application from the port area. Several issues may be surrounding the choice of transportation of the product from the port to the company itself. Emphasizing more on the best mode of transport and identifying the challenges will be a good idea of ensuring that there is an option of dealing with the problems. For instance, in this case study, I would prefer that Foodie Global Company consider road transportation to be their option. Road transport will involve the use of Lorries which will be loading in the port logistics. Although road transport has its challenges, it is the role of the company to play its part to ensure that they overcome those challenges. One of the challenges which are liked to be encountered in road transportation is road accidents. Road accidents may occur if the roads are not made to the required standards. Another challenge which might hinder road transport is road congestion as today there are many vehicles on the road. In overcoming all these challenges, the company should mainly focus on the positive side rather than the negative part of the situation. In this case study, if Foodie Global Company will have to consider this factor regardless of Lisa’s changing to a new port, it will be a fruitful way for them.
Question f
Skills and new roles to Susan
In this case study, Susan, to successfully carry out the shipping procedures in the International market, should mainly have to posse the following skills. She needs to know the incoterms and port procedures. Knowledge of Incoterms and port procedures will help her understand all the terminologies used by all organizations to perform an international business. It will offer her the required rules that govern the buyers and carriers, avoiding confusion on cost management and party responsibilities.
Susan should be knowledgeable of understanding the best mode of transportation and decide which will be convenient to the Foodie Global Company. Understanding the compelling mode of transport to be used will have to cut down the transport cost, will help in minimizing time wastage, and help reduce accidents triggered by the method of transportation. Foodie Global Company will be able to achieve the best as it emphasizes the best mode of transport.
In this case, Susan should also have to possess negation skills. In shipping procedures in an international market, the stakeholder should have good possession of negotiation skills. Negotiation skills in a global business are essential as it is identified to have a lot on the cultural barriers. Having negotiation skills will ensure that a negotiator has achieved the desired objectives, resolved disputes, and built relationships in an international market. Susan should also have to possess problem-solving skills. It will be easier for her to solve any problem that might be a significant problem in shipping procedures in international marketing.
She needs to have a good knowledge of international trade. This will have to ensure that she is working perfectly without any assistance or guidance from another individual. Therefore knowing the global business will act as the primary direction in working effectively as the shipping procedure demands her. She has to be an excellent communicator to the company’s clients. Appropriate communication skills on the vessel will ensure that she maintains and makes a safer, friendly attitude among the crew. Also, it will help in making her day more pleasant from day-to-day activities. Good communication skills will help Susan while in the shipping procedure to exchange knowledge, emotions, and information and understand the parties she is working with. Susan having a sense of assertiveness will have to guide her in her communication skills. It will mainly help her express herself and stand out for the point of view as she respects the beliefs and rights of others. Assertive will also have to boost her self-esteem, and she will have to get respect from those individuals she will be working with.
Strategic role of containerization towards helping Foodie Global Company
There is a strategic role of containerization, which might help Foodie Global stand again as a successful company. The scalability of the containers should be more encouraged in these shipping operations. It is essential to either store the containers in a small or a large cluster, and also, if it is effective, the size of the units can be changed. The scalability of the containers will ensure that they can be transported from one location to another without any interference. Observing the shipping process among the containers will be of much benefit to the Foodie Global Company. It will benefit the supply chain management, distributors, manufacturers, retailers, logistics companies, and other companies participating in the global supply chain. This will have to reduce the activity of theft or tampering with the shipping products.
The containers can be monitored and tracked with the right technology. For Foodie Global Company to work effectively in the shipping operation, it has to emphasize good monitoring technology. The effectiveness of technology in the shipping operation will have to ensure that theft cases are minimized as is required. ICT systems are essential in Foodie Global Company as they will have to give a robust connection of the ports, people, and ships. The technology advancement in shipping operations will generate a wide range of data hence helping for better operational decisions. Effective use of technology advancement in the shore sea offers an excellent collaborative and best possible flow in business activities.
In discussing the strategic roles, much consideration has to be prioritized to come up with the best idea (Shandhu and Siebert, 2020, p. 530). The Foodie Global Company needs to get pictures of cargo consolidation and also on the cost benefits. Emphasizing the concepts offered will effectively ensure that this company has been helped in shipping operations. The freight consolidation process in the shipping operations will be helpful as it will have to lower the total shipping cost hence increasing the security of the Company processes.
Issues of LCs
On the considerations raised with the LCs in the case study and the shipping terms by the FB, new issues are identified. Mainly from China, it can lead to the displacement of the cargo while in the port. There may also be recognized misinformation on the negotiating document hence making it difficult to understand. Currently, it is known that any cargo from China should have to suit a particular bank, and the issues surrounding the law may be applicable for a contract, mainly when a dispute may arise in the process. Also, inexperience on the local bank can significantly lead to a delay if suitable corrections are not made in the paperwork.
Company to mitigate these issues; it is their role to act desirably. It is essential to use banks that mainly have intl connections with China. It is encourageable to ensure good communication to ensure that there is no misinformation on the information offered (Kalaignanam et al., 2021, p.36). Training the staff will act as an effective way of minimizing problems or challenges that Foodie Global Company might be suffering from, hence ensuring good performance in the shipping operations. It would also be effective for a country such as China to choose banks that have already been proven to have much experience on both sides of working. Selecting this will have to minimize the issues of challenges which several banks do not know how to face as they do not have enough experience in that area.
Foodie Global has to act upon these issues to be on the safest side. It should have to decide on the best incoterms for the interest of the two parties. This concept will be essential to understand the best rules for engaging the two parties. It would also be effective to choose the best terms mainly relating to shipping charges as it will allow them to participate primarily in the international business. There should be an agreement on the effective ways of payment terms and effective methods of dealing with disputes that might interfere with their business’s progress. All these shipping terms will have to make Foodie Global Company a better place for international marketing.
References
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