Question: Business Case Study: Wonka Industries ( WII ) Import Case Format:Iterative ( submission plus presentation ) WII Canada is a reseller of goods to the
Business Case Study: Wonka Industries WII Import Case Format:Iterative submission plus presentation WII Canada is a reseller of goods to the North American market. WII was introduced to a product that appears to have higher longterm demand than current supply in North America. WII operates from a single location that acts as the distribution centre and office. The firm purchases goods at large quantities and resells these direct to large regional retail operations. WII has found a niche market in the supply of the product direct to nonnational retail firms that have been underserved by resellers who focus directly on big box and national retailers. Wii has been in business for fifteen years however has not yet imported product from outside of North America to resell to the North American market. The firm has located numerous potential suppliers abroad to choose from. The product unfortunately is not produced in North American and must be sourced from outside of North America. WII has a logistics team internally that handles the overall transportation requirements of the firm. In some instances, WII arranges for inbound product to be picked up at the manufacturer directly and in some instances the products are purchased with delivery of freight to the Canadian DCoffice location. The logistics team manages all of the outbound logistics to its customers using third party carries. Wii does not operate a private fleet. This logistics team currently uses rail, road, intermodal and smalls transportation modes. WII has one individual that operates as their Compliance Manager, responsible for ensuring all trade compliance documentation and requirements are fulfilled. The compliance manager works with an external Canadian Customs Broker for the clearance of shipments to from and between Canada, US and Mexico as they are purchased, warehoused and delivered. Your firm has been hired as consultants to prepare and logistics plan that will highlight the available options for importing the new product to Canada. WII anticipates that it will be able to integrate the outbound transportation requirements to its existing clients using the logistics team currently at WII. Your firm is to make recommendations to WII and should consider this an opportunity to educate WII on the requirements of performing international logisticsThe President of WII has asked specifically that you provide the following: A recommendation on the modal choices for shipment of the product to the Canadian DCoffice location. This recommendation must describe the available modes and provide analysis of their capabilities compare and contrast attributes You must provide costing and transit time for each potential routing using industry resources. A recommendation on the best Incoterm for WII to select on this project. WII is unfamiliar with using incoterms and the seller has indicated that their price to WII will be adjusted based on the incoterm selected. The seller indicates that they will only ship under FCA, CPT CIP, or EXW terms. You must provide an analysis of these terms including the risk to WII for the use of each incoterm and a recommendation on which term WII and the impact of selecting this term risks and requirements for WII The compliance manager for WII has indicated that they are unaware of the compliance regulations for the source country. You must prepare a compliance plan that describes the major components including at minimum: product classification, tariff treatment and importexport requirements. Your compliance plan should detail all elements that WII will need to be compliant based on your recommended INCOTERM. The President has also asked that you provide a summary any other potential risks or opportunities related to the project. Specifically the President is asking your firm to identify any other factors that WII should be aware or consider pertaining to the logisticsrelated functions of this project. The President is also concerned with monitoring the project to determine the success or failure. Specific to logistics the President has asked that a draft dashboard of KPIs be developed that could be used to determine if the logistical functions are performing as expected.
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