Requirements for Contract to Be Enacted in Southeast Asia - Assignment Example

Assignment 2 Name Institution Date Course Assignment 2 Task 1 a) Requirements for contract to be enacted in Southeast Asia The purchase officer must establish whether the sales person is authorized to transact for the company. The officer must fully understand the law governing contracts and arbitration in the foreign countries since countries in the Southeast Asia may not allow foreign judgments to get enforced in those countries. b) Resources used to check to determine The officer may need to look at the country’s laws on contracts which may be available on government websites or government journals. Laws of a country are public documents that are available in government offices and ministerial offices. He may also check websites for the supplying companies to determine the hierarchy of authority. Task 2 Q1. Why RFOs should be clear and unambiguous language This document is meant to inform potential suppliers on the organization’s needs before they accept an offer. The RFO assists the organization get the best value by engaging a competitive process considering qualitative and quantitative factors and not just the cost (Rouse, 2012). This document must therefore be clear since the document goes a long way to determine quality of services rendered and the products. Ambiguity may cause underestimation by potential suppliers and contribute to underperformance of the entire company. Q2. Process and issues The communication procedure must address the proper channel of communications, indicating the modes of communication used (whether by mail or post or telephone) by the company and how the suppliers will respond. It must specify whom to be contacted with what kind of information and when. When describing all these, the procedure must stress the use of clear and unambiguous language so as to minimize misunderstanding between company and the suppliers. Q3. Records established and maintained for the RFO process The number of RFOs prepared The mode and means of distribution of the RFOS Target suppliers The number of suppliers that responded to the RFO Evaluation factors including mandatory requirements Preparation and response time Q4. Requesting offers from potential suppliers overseas A major challenge will be language differences for communications and a common language must be agreed upon for effective communication. It will also be important to consider the response time but this will depend on the mode of communication agreed upon. It is also important to understand the business and social practices of the potential supplier’s country to further build trust and improve relationships (info entrepreneurs, 2009). Assignment 2 5. How a RFO may be influenced by the purchaser’s organizational policies In this document, the purchasing department gives specifications or scope for a given service. The department may also add cost proposals in order to get the best value for the service (Rouse, 2012). Organizational policies will therefore have a great impact in the formulation of this document since the policies lay the foundation for costs and performance standards for the operation of all the departments in the organization. Specifications must therefore comply with organization policies and costs must also be within the capabilities of the organization. 6. Exchange rates for currencies The Australian dollar equivalent of foreign currencies is shown below organized in a table: Country Foreign currency Australian dollar equivalent United States(Dollar) US$ 1.00 A$1.074700 European (Euro) Euro€1.00 A$1.426016 United Kingdom(Pound) UK£1.00 A$1.694696 Japanese(Yen) Yen¥1.00 A$0.010720 (Source: X-rates, 2013) 7. Actual FIS cost in A$ Case for United States (Dollar) US$500.00 US$1.00 @A$ F.I.S In A$ we will have US dollars multiplied by rate for AUD = 500 X 1.074700 = A$537.35 For European (Euro) Euro€500.00 Euro€1.00 @ A$ = A$ F.I.S: Since Euro€1.00 is equivalent to A$1.426016, we get in AUD, 500 x 1.426016 = A$713.008 For United Kingdom (Pound) UK£500.00 UK£1.00@ A$ = A$ F.I.S: We have UK£1.00 equivalent to A$1.694696, so that UK£500 will be = 500.00 x 1.694696 giving A$847.348 Japanese (Yen) Yen¥500.00 Yen¥1.00@A$ = A$ F.I.S Since Yen¥1.00 is equivalent to A$0.010720, Yen¥500.00 will be = 500 x 0.010720 = A$5.36 8 a) difference in packaging requirements when supplying from North Adelaide by local courier North Adelaide – local courier The packaging must be able to withstand disturbances on the road as well as loading which will most likely be done by hand lifting. The packaging must also be able to support the weight of the equipment and should not allow dust and other moisture. North Melbourne – general road transport General road transport will need even harder material since disturbances and shock will be more. The equipment must thus be protected from bumps, vibrations and the movement in general (Removal.net, 2013).The packaging must also prevent entry of dust and dirt. The packaging must therefore be secured with cushioning using crushed paper or polystyrene (Removal.net, 2013). The package may also be secured using friction mats, straps or edge beams to prevent any kind of movement when the vehicle negotiates a corner or goes over bumps (European commission Directorate-General for energy and transport, 2002). North America – air freight Transportation by air requires that the packages should also be labeled properly with name and address. The ZIP code for the consignee and shipper must also be included. The package must also be put to pre-shipping tests to ensure its survival of vibration, shock, compression as well as atmospheric conditions (UPS, 2005). The package must therefore be fastened or locked in place with enough shock absorbers provided. Northern Europe – sea freight For sea transport, the packaging must achieve rust protection, closure of openings, and protection against corrosion. There must be prepared detailed specifications of the goods and the packaging must be tough to withstand the handling and loading and moisture conditions in the sea as well as the fact that sea transportation will involve several handling points. It must also be secured rigidly to avoid overturning and breaking. 8 b) Documentation The road transportation will require a CMR note and in some cases a forwarder’s certificate of receipt (Gov.uk, 2013). Documents for sea freight will include commercial invoice, shipper’s identity evidence, copies for international shipping of goods license, legal documents required by clearing authorities, bill of landing, shipping order/Dispatch order (Dictionary of Sea Freight, 2013). Documents for air freight: the air consignment note or the house air way bill 8 c) number of handling North Adelaide – local courier: pick-up from the supplier store, loading at the courier offices, delivery to buyer – 3 times North Melbourne – general road transport: pick-up from the supplier store, delivery to buyer – 2 times North America – air freight: pick up from supplier stores, loading at airport, unloading at destination airport and loading to delivery vehicle, delivery at buyer’s store – 4 times Northern Europe – sea freight: pick-up from supplier store, loading at the port, unloading at destination port and loading onto delivery vehicle, delivery to buyer – 4 times. It is obvious that more handling of the consignment means more damage to the packaging. Sea and air transportation will therefore need stronger packaging material since here, loading may be done by folk lifting which may damage weak packages. Multiple handling may cause wear or breakages and needs special packaging material. List of references Rouse M, 2012, Request for Offer (RFO), retrieved on 11th September 2013 from X-rates, 2013, Rates Table, retrieved on 11th September 2013 from < http://www.x-rates.com/table/?from=AUD&amount=1> Removal.net, 2013, Packing Electronic Devices and Appliances. Retrieved on 11th September 2013 from UPS, 2005, Air Freight Packaging Pointers, retrieved on 11th September 2013 from Info entrepreneurs, 2009, Manage foreign suppliers, retrieved on 11th September 2013 from < http://www.infoentrepreneurs.org/en/guides/manage-foreign-suppliers/> European commission Directorate-General for energy and transport, 2002, European BestPractice Guidelines On Cargo Securing For Road Transport, retrieved on 11th September 2013 from Gov.uk, 2013, Moving goods by road, retrieved on 11th September 2013 from Dictionary of Sea Freight,2013, Sea Freight, retrieved on 11th September 2013 from Read More