Global Supply Chain Management (Group 1) PDF

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GRSIMRAN JE SUKHMANI SHRUTI PA GUNJIT SI VALESKA K AMANDEEGLOBAL SUPPLY CHAINMANAGEMENT1. Identify the stakeholders in this scenario.A stakeholder is someone who is passionate in a firm and has the ability to influence or be influenced by it. Investors, employees, customers, and suppliers are the ma...

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GR GLOBAL SUPPLY CHAIN MANAGEMENT

SIMRAN J SUKHMAN SHRUTI PA GUNJIT SI VALESKA K AMANDEE

1. Identify the stakeholders in this scenario.

A stakeholder is someone who is passionate in a firm and has the ability to influence or be influenced by it. Investors, employees, customers, and suppliers are the major stakeholders in a typical company. As the concept of corporate social responsibility has gained traction, it has been extended to include communities, governments, and trade groups. Shareholders, customers, suppliers, and staff are all significant stakeholders for a corporation. Internal stakeholders include investors and employees. Others, such as buyers and producers, are not employees but are influenced by the company's decisions. Nowadays, it's more common to talk about a wider range of external stakeholders, such as the governments of the countries where the company operates or even the general public. The people involved in this issue are Mr. Balakrishnan, Manager of International Sales for Loyal Textile Mills, and the Ontario hospital buying organisation.

2. What is the most appropriate incoterm for you to select (as the buyer) in this scenario? Explain your answer. These are rules used in negotiations to resolve specific terms and conditions of sales contract by addressing theObligations What are the responsibilities of the seller and the buyer? Costs Who is going to responsible for the shipment at specific point of journey, the main transport cost and custom duties? Risks Who bears the risk of loss or damage to the shipment or who will be responsible for the loss during transit? The seller delivers the products at an agreed upon departure port when the goods are delivered on board the ship specified by the buyer, and FOB or Free on Board will be the ideal phrase to use. When this form of delivery of products is made, the risks are automatically transferred to the buyer.

3. Draw up a sales contract (as the buyer) for the first shipment between Canadian Healthcare Imports and Loyal Textile Mills Ltd. Clearly state all assumptions.



IDENTITY OF THE BUYER AND SELLER This Sales Contract (hereinafter referred to as the “Contract”) is entered into on 14th March (the “Effective Date”), by and between Canadian Healthcare Imports, with an address of Loyal Textile Mills, (hereinafter referred to as the “Seller”)



SPECIFICATION OF GOODS Medical garments (PPE Products) i.e., medical scrubs and doctor’s coats.



QUANTITIES 2500 (1000 scrub top, 1000 scrub pants and 500 doctors coat)



DELIVERY TIME All invoices are to be paid in full at least within thirty (35) days i.e., 20th April.



PRICE The Seller hereby agrees to sell the Goods to the Customer for an amount of USD 275000. The Seller will provide an invoice to the Customer at the time of the delivery.



RESPONSIBILITY FOR REGULATORY COMPLIANCE Customs Regulations- Loyal Textile Mills will have to wait for 1 year for the regulatory approval for the PPE products. Origin of input- Products will be originated from India.



TERMS OF PAYMENTThe seller agrees to wait for 35 days after the buyer will sell the products.



GOVERNING LAWS

The laws of India's government and the Canadian market shall govern and be construed in compliance with this Agreement and licencing.



DISPUTE RESOLUTION METHODSIf buyer will face any issue regarding delivery of the goods, then it will be responsibility of the freight forwarder, and if it will get delayed it will be the responsibility of the OMG Logistics.



PENALTY CLAUSES If the shipment will get delayed it will be the responsibility of the freight forwarder.



INCOTERM’S RULE The freight forwarder agent which is hired by the buyer will deliver the goods through Sea and Inland Waterways. The cost of the shipment will be borne by the buyer i.e., Canadian Healthcare Imports. Any sort of damage in transit, delay in shipment will be responsibility of the Freight forwarder OMG Logistics.



CUSTOMER SERVICE Freight forwarder will provide regular updates to the buyer as its obligation about the service delays and make sure to deliver the products in a smooth way.



INCENTIVE AND BONUS CLAUSE As an incentive Loyal Textile Mills will provide a 30-day credit line to the buyer.



TRANSPORTATION OMG Logistics is responsible for the transportation. It is their duty to deliver the products.



REVERSE SUPPLY CHAIN REQUIREMENTS The goods which will be returned to the buyer under the categorization of defective/exchange will be covered by the seller in the good spirit.

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FORCE MAJEURE CLAUSE If the shipment gets delayed freight forwarder will be held responsible. After the selling of the goods, it will be responsibility of the buyer to pay the seller within 30 days. Due to unforeseen events or factors beyond the seller's reasonable control, the seller will not be liable for delays in performance or non-performance.

SIGNATURE AND DATE -

The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout their signatures below:

CUSTOMER

SELLER

Name: ____________________________

Name: ____________________________

Signature: _________________________

Signature: _________________________

Date: _____________________________

Date: _____________________________

Inventory included in this sales transaction are:

Total items ordered

Items in details

Packed in per box

250 pieces of ceil blue 1000 scrub tops of 4

250 pieces of royal blue

different colour

250 pieces of navy blue

20 pieces per box

250 pieces of hunter 250 pieces of ceil blue 1000 scrub pants of 4

250 pieces of royal blue 10 pieces per box

different colour

250 pieces of navy blue 250 pieces of hunter 250 pieces of short-sleeved coats

500 doctor’s coats of 2 250 pieces of long-sleeved different types coats

5 pieces per box

Loyal Textile Mills Limited No.83 (Old No.41),1st Main Road, R.A Puram, Chennai Tamil Nadu, 600002 https://loyaltextiles.com/

Commercial Invoice Payment terms Invoice No.

Po No.

Date

L03747

Mar

To: Canadian Healthcare

(Incoterms): 30 days after the

INV-21-03-

Imports

products are sold

024

16,2021

299 Doon Valley Drive, Kitchener, Ontario.

Price Basis:

Incoterms®2020

Quantity:

(Destination Halifax, Canada) 2,500.00 PCS

Carrier: Evergreen Vessel Ever Given

Container No.: EISU9572502

From Yantian China to Halifax Canada via Chennai Port of Lading: Chennai

Final Destination: Halifax, Canada

Unit Price/Unit

Description of Goods

Amount

Quantity Po# L03747, Medical Garments as below 20*250 Ceil Blue Scrub Tops 20*250 Royal Blue Scrub Tops

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

10*250 Royal Blue Scrub Pants

PCS

100.00/PCS

25,000.00

10*250 Navy Blue Scrub Pants

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

5*250 White Short-Sleeved Doctor’s Coats

250.00

CAD

CAD

5*250 White Long-Sleeved Doctor’s Coats

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

PCS

100.00/PCS

25,000.00

250.00

CAD

CAD

PCS

150.00/PCS

37,500.00

250.00

CAD

CAD

PCS

150.00/PCS

37,500.00

20*250 Navy Blue Scrub Tops 20*250 Hunter Scrub Tops 10*250 Ceil Blue Scrub Pants

10*250 Hunter Scrub Pants

TOTAL

Total Amount Seal No.

2,500.00 PCS

Say CAD Two Hundred and Seventy Five Thousand Only 473892

$ 275,000.00 (Incoterm)

I hereby attest that the amount shown on this invoice is the actual price of the products specified, that no other invoice has been issued or will be issued, and that all details are accurate and correct.

Signature and Status of Authorized Person

Date

Place

Address & Logo: Loyal Textile Mills LTD. (n.d.). Loyal Textile Mills LTD. https://loyaltextiles.com/

Invoice referred from etext page no.577 &502

Last statement: Smartsheet. (2020, March 25), Smartsheet, https://www.smartsheet.com/sites/default/files/2020-03/IC-Commercial-Invoice-Template10768_PDF.pdf

5. In week 4, we learned about the competitive forces that shape the organization’s business strategy. What is your business strategy in this scenario? Explain your answer.

The business method presented in this situation is called focus. The company is primarily focused on Canadian healthcare imports in this scenario. The company's primary target market is the healthcare industry. In its most basic form, focus strategy or niche strategy refers to a narrow and particular market segmentation. The purpose of the focus approach is to manufacture, advertise, and sell a single product to a specific consumer group. The idea behind focused approaches is that you may utilise any of the previously described strategies to target whatever market group you want. If you see an opportunity to lead in a specific area, focus on it and devote all of your energy to obtaining it. Attempting to capture the entire market with your business strategy might sometimes pay off better. Firms benefit from the focus strategy in a variety of different ways. For starters, because you're concentrating your products and marketing efforts on a small group of people, you get to know them better and are capable of understanding their requirements. Understanding the needs of your target market allows you to create products that you know will be useful, beneficial, and finally purchased. A focus strategy can also be used to build strong relationships with your target market. Buyers feel a connection to your brand and are more loyal to you since you are actually listening to their demands and problems and designing products to address those demands and difficulties This signifies that you're generating clients who will buy and support your products for years to come, as well as tell their friends and family about them. There are a handful of other advantages to adopting a focus strategy. The strategy works well in areas where the rival is regarded to be

weaker; for example, a competitor may be trying to be all things to all people. By concentrating your efforts, you can usually outperform a competitor who is not targeting the specialised group as well as you are. Buyers will see you as the market leader in a certain product category if you do it right, and will prefer you to a brand with a broader emphasis. Types of Focus Strategy The focus strategy has two variants: 1. Focused Differentiation Strategy Focused differentiation is the first type of focus strategy, and it focuses on creating a distinct product for a certain market group. A corporation that implements a differentiation strategy focuses on a specific customer segment and offers unique and customised features to the product. 2. Focused Low-Cost Strategy Firms entering the market frequently use a concentrated low-cost strategy. These businesses enter the market with a one-of-a-kind product that offers more value to their target customers at a lower price. This isn't to argue that a focused low-cost strategy can't or won't be pursued by established businesses. It is self-evident that a newcomer cannot directly compete with the market heavyweights. As a result, many businesses aim to gain market share by offering lower pricing for their goods. Of course, maintaining this method over time can be challenging, but it is incredibly successful for newcomers. Furthermore, many businesses pick this marketing method for a variety of reasons. For example, certain businesses can readily satisfy certain consumer groups with low-cost products. So, what exactly does that imply? There are certain customers who would rather buy low-cost goods than high-quality goods. This market technique is especially common in developing nations, when people's purchasing power is limited.

The focus strategy looks to be an effective and efficient method for establishing and growing your brand. Before selecting on a focus strategy option, there are a few things to consider. Finding smaller sectors of the market where you can readily serve is more profitable. The primary goal of any firm is to make money. As a result, the market segment you select must be large enough to generate consistent earnings. Growth Another essential factor to consider in a focus strategy is the potential for growth. Because of the extremely competitive nature of the industry, a business that does not grow with time may struggle to thrive. As a result, before focusing on a single market area, organisations should examine the possibility for growth. • Competitive Advantage Any focus plan, or perhaps any company strategy, is built on the establishment of a competitive advantage. To differentiate itself, a company targets a certain group of customers with a distinct proposition. If you can provide something valuable to your clientele, you will make it more difficult for others to compete. Because it is tough to fight against the industry's pioneers, there are many low-competition niches. Resources that are sufficient If you want to pursue a focus approach, you must have sufficient financial and other resources. The costs may be higher at first, and marketing your product to your target audience may require more effort. Furthermore, firms must ensure that they can provide a product on a consistent basis. Done If a corporation is supplying a rare item or a product consisting of rare ingredients, it must ensure that it has access to those ingredients on a regular basis. If a company can efficiently manage these resources, the focus strategy is a viable alternative. 

Sufficient resources

If we want to pursue a focus approach, you must have sufficient financial and other resources. The costs may be higher at first, and marketing your product to your target audience may require more effort. Furthermore, firms must ensure that they can provide a consistent product. If a corporation is supplying a rare item or a product consisting of rare ingredients, it must ensure that it has access to those ingredients on a regular basis. The focus approach is an excellent alternative to adopt if a company can properly handle these resources.

6. Identify the interaction group type and the supplier interaction model in this scenario and explain why that model best describes the relationship between Canadian Healthcare Imports and Loyal Textile Mills Ltd. The critical cluster interaction group, which determines a supplier's demands based on its performance and strategic potential, is the supplier interaction model that best shows the connection between Canadian Healthcare Imports and Loyal Textile Mills Ltd. The Critical cluster interaction group consists of three types: 1.

Integrate: A shared goal and a willingness to behave as an expanding business that

functions smoothly are the foundations of this connection. These are multi-year, distinctive, and comprehensive relationships that bring a lot of value to the purchasing department. In this example, both organisations, Canadian Healthcare Imports and Loyal Textile Mills Ltd., have a mutual willingness to collaborate and take this cooperation to the next level in good faith for the mutual benefit of both companies. 2.

Influence: These connections necessitate frequent and timely communication in order

to identify exclusive opportunities and provide suppliers with varied opportunities to

establish mutually beneficial buyer plans and activities. It is a dominating supplier who, in this case, is Mr. Balakrishnan on behalf of the Loyal Textile Mills Ltd., since he has committed our firm, i.e., the Canadian healthcare imports, to do business with them. It has established a level of confidence through an internet communication channel in order to sell healthcare clothing and other orders, such as PPE kits, in the future, by offering incentives such as free shipping on the first order. 3.

Invest: This type of relationship necessitates constant and ongoing peace of mind in

order to build trust and overcome acquisition fears by investing time, money, and required resources in developing skills to meet all of the buyer's needs, similar to the trust that exists between Canadian healthcare imports and loyal textile mills ltd. with their amount of time and money invested in things like paying the freight forwarder and shipping costs. These suppliers have amazing ideas and inventions, but they must constantly collaborate and coordinate with one another to maintain their core performance....