Project # 2 Inbound Transportation - STUDENT

Introduction:

Inbound transportation is also a key responsibility of the retail management team to create and maintain an effective and efficient supply chain. This aspect of supply chain is critical in meeting a customers requirements for the required product quantity and quality. Given the annual volume indicated in the Capstone Import Register as the optimal order quantity for a year based upon the retailers experience of their consumers buying behavior, the management team must decide whether the product will be imported all at one time or in several shipments over the course of a year. It should be noted that by the end of year1 all the annual volume must have been imported.

The supply chain decision making process is presumed to commence in September 2020. Shipments of product are to start no later than January 2, 2021 and be completed by December 15, 2021.

The management team should draw on the knowledge and skills that they have learned and practiced in their previous Supply Chain Management courses. Students are therefore responsible for reviewing the previously studied course work, text books, and material as required to address all Capstone assignment specifications.

Project 2 Specifications:

To create and execute an effective and efficient supply chain, the management team is required to undertake the following tasks in a detailed report:

1. Establish the detailed routing that the inbound shipment will take from the point of purchase to the retail/warehouse location in Canada. A detailed supply chain and routing map must be provided by the management team to identify, explain and illustrate the shipment routing as well as the complete supply chain. The points and locations of transshipment (e.g. port and/or terminal names) must be provided. As part of this explanation the different modes of transportation must be identified along with an explanation of why the various modes of transport were chosen. (30 marks)

2. Identify the number of shipments which will take place over the course of the year to import the pre-established annual requirement. Note: the size of each shipment imported will in part be dictated by the perishability of the product, the monthly usage by the customers, warehousing and shipping capabilities, TCO, etc.

The number, type and size of shipping containers to be used must be identified. This is dependent on how the product is packaged, packed, loaded and stuffed into shipping containers. The management team must also provide specific details related to each of these aspects of the shipment. Example: how many units per packing carton how many cartons per pallet how many pallets per container? Pictures and/or diagrams should be used to illustrate the foregoing information. A final load plan for the total shipment must also be included. (30 marks)

3. The total costs of the shipment must be identified and explained. This must be detailed in full.
4. As part of this explanation the management team must calculate the weight break in pricing for the different modes of shipment along with the factors that affected the shipping rates for each mode.

(30 marks)

All risks associated with the entire shipment must be identified and assessed. The predetermined Incoterms used and referenced in the Purchase Order created in Project 1 should be reiterated and explained. In conjunction with the risk and Incoterm assessment, the type and amount of insurance that will be obtained to cover the associated risks must be provided. (30 marks)

NOTE: for the purpose of this project the only incoterms that may be used are:

• EXW
• FCA
• FAS

The forgoing information will be submitted to the instructor by the deadline noted on the Course Syllabus and be structured according to the previously established standards for clear, effective and efficient report writing and presentation. An additional 30 marks are allocated for this element of the project