Case study 1 supply chain PDF

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CASE STUDY-1

OPER8340-21W-SEC21-GLOBAL SUPPLY CHAIN MANAGEMENT SUBMITTED BY: 1. Nitin Mankotia -8743872 2. Tijin joseph-8720758 3. Athira suresh-8744691 4. Sabin sajeevan-8698223 5. Tanmai desai -8741241 6. Pruthvirajsinh zala-8744803

[COMPANY NAME] [Company address]

Q1. (a) Which incoterm would be represent the terms of sale between Kalastaa and DanskFisk ? It is important to dictate that which all are the tasks and costs belongs to a vendor and purchaser before computing the sales price and closing a deal, such charges safeguards shipments and conveyance of shipments from sellers premise till they reach the buyers premise, these phrase of trades are known as International Commercial Terms which is also known as Incoterm. The vending terms in-between Kalastaa and DanskFisk are best performed by Carriage & Insurance Paid To (CIP). Q-1(b) For what do Kalastaa and DanskFisk each bear responsibility and charges? (10 points) Ans- Responsibilities of kalastaa (exporter) 1. Delivering goods to vessel of transport 2. Custom clearance at own country port 3. Purchasing insurance 4. Paying of cost upto the port of importer’s destination 5. Provide certificate of quality to Danskfisk 6. Licences, authorisations and formalities -Obtain at his own risk and expense any export licence or other official authorisation and carry out all customs formalities necessary for the exportation of the goods. 7. Notice to the buyer -Give the buyer sufficient notice that the goods have been delivered on board the vessel as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods. 8. Proof of delivery transport document or equivalent electronic message -At his own expense provide the buyer without delay with the usual transport document for the agreed port of destination. 1) 2) 3) 4)

Responsibilities of Danskfisk (importer) Paying unloading charges Paying duties Custom brokerage charges Additional costs upto the warehouse -Includes all the transit costs

5) Issue a letter of credit to exporter

Question 2. Which type of shipping vessel would be most appropriate for Kalastaa to ship their product to Copenhagen? Explain your choice. Ans- Shipping vessels are generally categorized as per their usage, type of cargo and the way in which the vessel is to be loaded. Shipping vessels are further classified on cargo-type, if the liquid state cargo is to be transferred, vessel is called tankers, if powder-based cargo is to be transferred then word carrier is used and in case of solid-state cargo ships are used. As per requirement of Kalastaa Inc. cargo-container ships can be put in use. Container ships has the upper hand over the other means because containers can be designed in a way to handle temperature control, moisture control, drainage, and food grade material norms. Handling quality of fresh fish is a delicate process which require proper temperature control, cleanliness, monitored humidity and drainage system. This can be achieved with use of insulated container which reduce heat infiltration through container walls and provide protection from physical damage or damage from rough handling. Container Ships are built to hold larger number of containers which are usually 20-40 feet long and 8 feet wide and high. These are the standard dimensions and are convenient to handle while boarding and off-boarding. Therefore, these vessels will be appropriate for Kalastaa Inc. to ship their product to Copenhagen

Q-3. Describe the purposes for each of the export documents that Kalastaa needs to provide to secure documentary credit. (Hint: your answer should include four different export documents (12 points) ANS: Commercial invoice - This document is the one which shows senders and receivers details along with quantity, price and taxes of the product

being shipped. Kalastaa needs these documents with their product to process their shipment.

 Insurance policy - This document is important while shipping huge quantities of items internationally. It will secure the losses caused by damage during shipment or lost items.

 Marine bill of Lading - This document explains what is in the shipment and also carries all necessary details about it. While transporting something via international oceans this document is mandatory. This is helpful for both seller and receiver to understand the shipment and a collection document.

 Certificate of quality - Kalastaa was notified about the quality of salmon the receiver needed, so this document depicts the quality of product that has been sent and specifies the components or ingredients in it. It is important for the receiver to have this document to determine the quality of items.

4. Would Kalastaa have benefited from employing a freight forwarder? Explain. (10 points)

ANS. Who are freight forwarders ? A freight forwarder, forwarder, or forwarding agent, is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods.

Without any doubt Kalastaa would get perks if they hire a freight forwarder. freight forwarders are the people who push shipment forward. They do not move it on their own, but they arrange relations between shipper and transportation companies as well. Because freight forwarder knows every single rules and terms for exporting very well. And then Kalastaa would fathom how much content they should load in their shipment for its clearance. They act as shipping agents, intermediary between the shipper and transportation services, liaising with various carriers to negotiate on price and decide on the most economical, reliable, safest and fastest route for the cargo. forwarder can not only help with increase supply chain efficiency, but can also drive down costs. REFERENCE: -Kenton, W. (2020, October 09). Carriage and insurance paid To (cip). Retrieved April 10, 2021, from https://www.investopedia.com/terms/c/carriage-and-insurance-paidcip.asp#:~:text=Carriage%20and%20Insurance%20Paid%20To%20(CIP) %20is%20when%20a%20seller,at%20an%20agreed%2Dupon %20location.&text=If%20the%20buyer%20desires%20additional,be %20arranged%20by%20the%20buyer....