Global Logistics - Assignment Example

Now the main reason behind this feasibility study is that an optimum route and port has to be selected for the transport and shipment of goods from factory and port to the warehouse at Jabel Ali. Also the transportation cost has to be kept in mind so that it doesn’t put load on the cost of the product. The transportation vehicles, their cost and size has to be aligned with the size of the lot produced and the cost incurred in transporting goods to the port in the longer run. This measure will be calculated by comparing lot size, minimum expenditure and time that will be incurred in transportation of material as time is the most critical factor in many cases.

Also there are various type of options available during logistics and shipments of goods and various costs incurred with these. The main reason for mentioning this is that the new Factories have been established in territories which are new for the company and the company is not familiar with working of transportation, shipment and labor costs of these regions. For this survey of these regions has to be done so that a tentative cost structure could be drafted. On formulation of this cost structure further measures will be taken to select an optimum line up or partners so the process of collection of goods from the manufacturing site to its transportation to port through logistic partners and then shipment to the distribution through freight forwarding partners is cost effective and has optimum time line.

PROCEDURES (selection of Partners) : Next a suitable selection of trustful Freight forwarders will be done who shall transport the goods from India and Brazil. Now the selection shall involve various steps which shall be quite critical in finding the most suitable freight forwarder. First phase shall include pooling of such forwarders who have a reputable name in the industry and are capable enough to ship the given amount of container each week so that no delay is faced and no risk of inventory stock out is faced at the warehouse in Jabel Ali.

Now this phase shall give us an opportunity to gather contact with forwarders which shall be useful in future and we’ll have a thorough idea of the market rates. In the next phase the forwarders will be requested to submit their bids for contract. These bids will be thoroughly checked and the one best suited to company’s policy shall be short listed. The criteria for short listing will not be only limited to the best rates given to us but actually the freight forwarding companies who have more inclination to make us their clients rather than just try to get this order.

Third phase shall require short listing of the companies and terms will be dealt with them to form long term strategic alliance which shall be mutually beneficial for our company and the forwarding partner. Final phase will be to decide the most trustworthy and beneficial company to partner with. After final agreements and terms are settled the chosen forwarder is given contract of forwarding the containers and in return the company promises us the best service. SELECTION OF PORT The selection of port shall be quite critical as it’ll decide the time required to ship container from source to destination i.e. from India and Sao Paolo to Jabel Ali.

The main reason behind this step being the most critical is that even if every process i.e. production, logistics etc are following proper schedule but the port selected is a little far away than it’