REPORT (ALK) 10

REPORT (ALK) 10

 

Running head: REPORT (ALK) 1

 

 

 

 

 

 

 

 

 

Report (ALK)

Name

Institution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report (ALK)

Fast and Lose (F&L) shipping company is looking forward to outsourcing goods for Compretudo supermarket from India and China. As a shipping company will take the role of contacting both the suppliers of the goods from the two countries and ensure timely delivery and security until their arrival in Brazil. Letting us serve you will enable Compretudo to get the following benefits:

Time saving: Fast and Lose (F &L) will take all the work from your table hence saving the time that the supermarket management will take to look for suppliers both in India and China. The shipping company will relieve the supermarket and its employees the burden of daily logistical tasks that will give them more time to grow their business.

Accountability: The shipping company will be accountable for all the expenses and security of the goods from China and India to Brazil

Risk reduction: Outsourcing logistical needs will reduce both labor risk and the financial risks of the supermarket during the transportation of goods from the two countries to Brazil.

Cost efficiency: There is no need for the supermarket to struggle with the cost of establishing the logistics as we will provide you with warehouse space, transportation, and technology.

Expertise: As a shipping company, we are passionate about what we do. As a result, we will integrate our level of expertise with the supermarket’s business practices to make sure you get the best customer service experience possible.

Risks of outsourcing

While the advantages, particularly from a cost perspective, are self-evident, there are additionally certain risks verifiable in outsourcing. These risks come from a disconnection between the shipper and the bearer chosen by the specialist to deliver goods on their behalf (Braithwathe & Wilding, 2006). Some shippers may likewise trust that procuring a third party to deal with their transportation needs will shield them from lawful activity; anyway, in all actuality, this “insulation” from prosecution doesn’t exist. Redistributing can open you to more hazard by evacuating key consistence duties—including carrier determination/management—from your oversight. Legal counselors for offended parties will experience the transporters to get to your organization and your broker’s more deep pockets.

How to manage the risks of outsourcing

To reduce the risks related to outsourcing to promote a successful business relationship, it is important to consider the following to mitigate the risks (Pierce,2 019)

Insurance: Fast and Loose (F&L) will provide the partner’s certificate of insurance and make sure that the information between us the shipping company and the client is accurate. We will review the exact coverage and how the insurance covers cargo loss and damage, the terms and conditions that apply and also exclusions that apply.

Safety procedures: In my company, we moved our carrier vetting from our operations to our safety department; this ensures that a carrier’s safety record is subjected to the highest level of scrutiny. We have also developed a robust carrier monitoring system that looks not only at how carriers have performed in the past but interfaces in real-time with the Federal Motor Carrier Safety Administration (FMCSA) scoring data to ensure our carrier statistics are accurate and up-to-date.

Maximum protection from liability: We will offer full coverage of the load in the ship in the broadest manner possible hence actively managing the risk throughout the logistic chain. Our company now has umbrella protection for ourselves and our customers, including general liability, contingent auto and excess coverage of up to 26 million USD.

How Fast and Loose (F&L) will coordinate the various supply chain roles

Freight forwarders have different roles (“The Role of Freight Forwarders | HIS Spedition,” 2019), and the freight forwarder company is going to play the following roles in managing the supply chain:

Offer advice to compretudo management: The company will inform the client in advance of any possible changes and challenges that we might be facing during transportation. We will negotiate with various transport agencies on behalf of our clients to reduce the cost of transporting the carriage.

Booking the modes of transportation and freight space: One of the fundamental roles of Fast and Loose (F & L) shipping company is to book for cargo space on the ships. We will ensure that the goods are well packed in a secured container from India and transported to China where we will receive them and prepare the whole consignment for shipping to Brazil.

Packaging, warehousing, and distribution: Before shipping and after the arrival of the goods, F & L will organize for packaging warehousing and distribution. We will store the goods in our warehouses as we arrange for their shipment to China and from China to Brazil. We will pack the goods by the client’s taste and preferences.

Fast and Loose (F&L) shipment company will transport the goods by the WCO framework and. As a result, we will be the Authorized Economic Operator. This framework and standard are introduced to facilitate and secure safe global trade. The framework will apply during the movement of the goods from India to China than to Brazil. The principles in this framework will strengthen the cooperation between customs administrations in various countries; hence the information shared will facilitate easy and smooth transportation of the goods. Therefore, the framework will help the shipment to move the goods and oversee the cooperation between customs authorities in the three countries involved standard. Under the WTO, less import duty will be asked for because the countries are a member of the organization (“WTO Trade Facilitation Agreement – A Business Guide for Developing Countries,” 2019).

The company will contact the seller of the goods from India and facilitate the buying, warehousing and shipment services on behalf of the client. We will secure the goods in their container and seal them to eliminate unauthorized access in them. As the forwarding agent, we will book the cargo space and organize how the shipment will arrive at the port of Guangzhou. In between, we will ensure we have the necessary insurance policies to secure the goods from any harm to them. On arrival, our agents will receive the shipment and combine them with the goods obtained from China. We will place and pack them according to the requirements of our client. The agency will again book the cargo space on the ship for the shipment to Brazil, and on arrival, we will work with ‘Rápido e Apertado,’ the freight forwarder in Brazil to distribute the goods in the choice destination made by Compretudo management.

Potential supply chain security threats

During the shipment of the goods, they will be exposed to various threats that require immediate responses for them not to interfere with the supply chain.

Smuggling: The smuggling of illegal and legal goods may present threats to supply chain security. Counterfeit goods, narcotic drugs, and the so-called gray market products can be smuggled in through the containers that are used to ship legitimate products. Not only can smuggling affect end destinations and consumers, but it also affects the supply chains by consuming up space in containers that are already crowded due to increased consumer demand.

Terrorism: The British publish a yearly report that analyzes global threat spots for supply chain operations (“BSI Supply Chain Services and Solutions | BSI America,” 2019). Terrorism, in its widest sense, portrays the utilization of intentionally aimless violence as a way of creating terror or fear to attain a political, religious, or ideological point. This viciousness can take on numerous ways, including cyber terrorism, and can have dire outcomes to the supply chain (Hines, 2019).

Physical Device Tampering: Deliberate tampering with physical gadgets such as is another big security threat in supply chain management. This threat has specific implications for the defense electronics supply chain, and 2013 featuring the trouble of detecting electronic chip altering still seems to be valid. Such altering could compromise vital defense frameworks or disrupt systems that utilize the chips.

Securing the supply chain

Fast and Loose (F&L) shipping company has the necessary technology and equipment’s that can secure our client’s goods. We ensure that the shipment is not tampered with and no illegal items are transported minus our knowledge. The International Maritime Organization is an agency of the United Nations which is responsible for dealing with measures that are needed to improve security and safety of global shipping and also prevent marine pollution. The organization provides a framework for the shipping industry that is effective and fair and can be adopted universally. They are required in legal issues that are related to international shipping, like compensation matters, liability and international maritime traffic (“International Maritime Organization –IMO”, 2019). Because of this organization, Fast and Loose (F&L) assure the safety of the shipment from India to Brazil then to China. How does the company ensure security for the shipment?

Cargo security technology: F & L shipping company provides cargo security technology such Mechanical and electronic Container Security Devices (CSDs) that are essential in maintaining the integrity of a container and protection against smuggling, theft, sabotage of cargo and “rip-offs.” It can also track the container’s global position and pinpoint container location (Donner & Kruk, 2009). A “rip-off” is where a licit shipment is used to smuggle contraband from the origin country to the country of destination (“UNODC ROPAN and Ministry of Public Security hold First Regional Conference Against Drug Trafficking Networks”, 2019)

Cargo Detection Technology: F & L offers cargo scanning to ensure an end to end security of the goods on transit. The company does this through the X-ray scanners that will detect any illegal items in the shipment. X-ray scanners have been manufactured to screen containerized cargo (Khan, 2013).

Trace Detection Technology: Explosives and narcotics leave trace material on items that they come into contact with. Sterile wipes are then used to rub the surface of the object to get the traces then put into the technology which analyses the samples immediately display the results.

Conclusion

From the above report, it can be seen that Fast and Loose (F & L) shipping is capable of taking the role of the freight forwarder for the completed supermarket. The company has shown its capability of handling the task and will be highly recommended to take the role of supply chain management.

 

 

 

 

 

 

 

 

 

 

 

References

BSI Supply Chain Services and Solutions | BSI America. (2019). Retrieved from https://www.bsigroup.com/en-US/Our-services/Supply-chain-solutions/

Braithwaite, A. and Wilding, R, 2006, “The Supply Chain Risks of Global Sourcing”. Chapter 3 pp. 23-35, Managing Business Risk: a practical guide to protecting your business – 3rd Edition (Editor Jonathan Reuvid), Kogan Page Limited, UK

Donner, M. and Kruk, C., (2009), Supply Chain Security Guide, World Bank, Retrieved fromhttp://documents.worldbank.org/curated/en/862601468339908874 /pdf/579700WP0SCS1G10Box353787B01PUBLIC1.pdf

Hines, E. (2019). Terrorism and Supply Chain: A Growing Threat of Supply Chain Terrorism. Retrieved from https://cerasis.com/supply-chain-terrorism/

International Maritime Organization – IMO. (2019). Retrieved from https://www.investopedia.com/terms/i/international-maritime-organization.asp

Khan, S. (2019). X-ray Technology, Noises in X-Ray Images, Causes & Solution. Retrieved from https://www.researchgate.net/publication/299394952_X-ray_Technology_Noises_in_X-ray_Images_Causes_Solution

Pierce, F. (2019). Reduce the risks of outsourcing. Retrieved from https://www.supplychaindigital.com/procurement/reduce-risks-outsourcing

The Role of Freight Forwarders | HIS Spedition. (2019). Retrieved from http://hisspedition.sk/en/role-of-freight-forwarders/

UNODC ROPAN and Ministry of Public Security hold First Regional Conference Against Drug Trafficking Networks. (2019). Retrieved from https://www.unodc.org/ropan/en/unodc-ropan-and-ministry-of-public-security-hold-first-regional-conference-against-drug-trafficking-networks.html

World Trade Organization. (2019). Retrieved from https://www.cambridge.org/core/societies/world-trade-organization

WTO Trade Facilitation Agreement – A Business Guide for Developing Countries. (2019). Retrieved from http://www.intracen.org/wto-trade-facilitation-agreement-business-guide-for-developing-countries/