BUSINESS

Logistic Case Study

Table of Content

Introduction3

Supplier selection, evaluation and procurement3

Selection and evaluation of supplier4

Process of Procurement4

International transportation from Singapore to Australia5

Mode of Transportation6

Australian Quarantine and Inspection clearance9

Conclusion10

Logistic Case Study

Introduction

Members of domestic and overseas investors have decided to establish an online retail store in Australia. The store is based on e-commerce and online buying and selling between retailers and consumers. It has been realized that the demand for online store is increasing and the target market would be Australian. There would be variety of products include car accessories, products for camping, fishing and boating and electric household appliances. There are already established online companies that would be their competitors like Supercheap Auto retail stores and Motoquipe online, BCF Boating and Harvey Norman appliances.

From a thorough analysis, it has been realized that the goods would be supplied from Singapore because of its cheap supply labor cost and vast variety of products at cheap prices. The paper will discuss in details about the selection of suppliers, international transportation and Australian Quarantine and Inspection clearance.

Supplier selection, evaluation and procurement

Singapore is the best location for setting up a warehouse and hiring suppliers for delivering goods from there to Australia. Singapore is ideal for global sourcing operations as its sourcing sector is growing rapidly with considerable rates. This is the reason that US Department of Commerce graded Singapore's outsourcing sector as second fastest growing internationally. It has been an offshore centre for many international companies.

Selection and evaluation of supplier

To survive in a globally competitive market, it is important for online store to develop existing as well as new suppliers from Singapore. There are number of sources from which we can discover potential suppliers like online websites and agents in host country. Online store would hire an agent in Singapore who will take care of supplier selection and evaluation and is responsible for the delivery of goods to Australia.

The process of selecting supplier involves series of steps that have to be managed by the agent. There must be many existing suppliers but looking for cost effective one is what online store wants for example, low labor cost or favorable import/export regulations. There is a vast market of electronic items, boating products and automobile tools. Supplier must be competitive in delivering goods and experienced in exporting goods to other countries especially Australia.

Once online store's agent has identified the potential supplier, he then asks for proposal, information and request quote. On the basis of these details, the contract agreement will be signed between the buyer and the suppliers. The agreement contains online store information and supplier's credit detail and mode of payment between the two parties.

Process of Procurement

The process of procurement is one where companies purchase goods and services from different suppliers. The goods and services can be direct or indirect, depending on the nature and requirements of the business. The direct goods are the ones necessary for manufacturing products. Procurement comprises of the purchase of energy, temporary labor, vehicle leases and much ...