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BUS211_Assignment1.docx - Introduction Over the years,...

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IntroductionOver the years, international trade, economic changes, and development havegone through major changes for every country.There is a growing recognitionthat it is through logistics and supply chain management that the twin goals ofcost reduction and service enhancement can be achieved (Gong & Cullinane,n.d.).International trading allows countries to sell their local goods to other countrieswho do not produce them locally in their country. Therefore, international tradingresulted in a competitive market with competitive prices, thus allowing endconsumers like us to be able to purchase the goods at a lower price. Whilemaintaining stable day-to-day operations, companies must still maintain acompetitive advantage amongst their competitors, explaining the need toparticipate in international logistics.This report will analyze the challenges and overcome these challenges whentransporting a cargo of Edam cheese (1,000kg) from Edam – Volendammunicipality, in Northern Holland to Singapore.Cheese is labelled as perishable food and will turn sour if not stored andtransported correctly, affecting the consumer’s choice of purchase. For theconsumers to enjoy the freshness of the cheese, transportation to Singaporemust be fast and swift to reach stores to start selling.The challenges we expect consist of but are not limited to the transportationmode, the cheese’s packaging, any risk involved, and the payment method.ChallengesThere are multiple challenges associated with the international environment,such as the long-distance between countries, cultural differences, political andlegal issues; hence international logistics is often considered complex. (Cho, J.,& Kang, J., 2001)As compared to domestic trading, international trading will have morecomplications and challenges.Transporting CheeseThe importation and exportation of goods are increasing as globalizationcontinues to grow. Businesses benefit from importing and exporting goods asthey can gain more revenue, therefore expanding to multiple countries.The transportation modes of transportation and shipping consists of landtransport, air transport, sea transport and rail transport. The choice oftransportation differs due to the nature of the goods. Each transportation methodhas its own pros and cons.For land transport, the advantages of it are that it provides door to door deliveryservices, as well as it will be easier to track the exact location of the vehicle to
get an estimate of the arrival of the goods. The disadvantages of land transportwill be the shipping capacity of the vehicle which is limited and deliveries for longdistance locations will not be viable which is subjected by traffic conditions.(Purolator International, 2020)For air transport, the advantages of it are that it provides fast deliveries and willbe able to deliver to any country in the world, also able to keep the freshness ofperishable goods. The disadvantage of air transport is that it is the mostexpensive mode of transport. (Purolator International, 2020)For sea transport, the advantages of it are that it can ship goods in large quantitywith a low shipping fee, while the disadvantages of it is that it takes a longer timedue to travelling via the ocean route. (Purolator International, 2020)For rail transport, the advantage of it is that there is little to no delay in the

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Simon Manae
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