Episode12PPTSlidesVideo - Episode 12 Global Operations III...

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Episode 12 Global Operations III
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Key Questions How do goods flow from the Far East, Europe, and South America to the U.S.? What are duties and tariffs? What happens with freight after it clears U.S. Customs? 2
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Part 1 Global Freight Flow
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4 Getting thru Customs Arrival Validation Entry Liquidation Getting the goods to the US involves 3 major steps Post-clearance Port ops Truck vs. rail FTZs Bonded W/H Moving the Goods Service needs Mode selection Routing Event mgt. Entry process Must coordinate activities and take a process approach
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How long does it take for goods to flow from offshore manufacturers to the U.S.? Global logistics activities take time factory to port port to port Customs clearance port to customer DC Routing impacts timing Port selection All water service vs. mini-landbridge Example estimates (ocean segment only) Yantian, China to Long Beach 12-18 days Rotterdam to New York 8-13 days 5
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Product is bottled and taken to company warehouse at Ahus, Sweden port Containers are moved to major European ports by feeder ship, or… Containers are moved to Gothenburg, Sweden port via intermodal train Containers are loaded onto ocean carriers and transported to major U.S. ports Shipments are loaded onto 20 ft. ocean containers After unloading and clearing U.S. Customs, Absolut subsidiary fills distributor orders Distributors fill retail orders and deliver product to your local store. Enjoy! The International “Flow” of
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What decisions are involved in global transport? Mode & carrier selection origin and destination points physical characteristics of goods time sensitivity & value of freight shipment weight and dimensions Route selection availability / capability of ports interim activities required
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What are the primary modal options? Ocean + Least expensive transportation mode + High capacity, fuel-efficient vessels - Slow transit times, port congestion issues = delays, slower customer response, and higher levels of safety stock - Higher risk of damage and theft Ideal for seasonal, lower value, low risk consumer goods, bulk commodities, and large items
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How are consumer goods imported to U.S.? 9 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Full TEU 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Full TEU Growth %
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What are the primary modal options? Air + Fastest mode = Shorter transit time & reduced inventory levels + Less handling = lower damage rates - Most expensive mode on weight & space basis - Limited carrying capacity limits volume moves Ideal for high value, fragile, & perishable goods
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How do ocean and air rates compare? 11 OCEAN AIR
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What impacts transportation rates? INCOTERM selection Mode(s) and carrier(s) used Service level requirements Origin/destination points FOB (named location) Trade lane Port pair selected Time of year Seasonal rate adjustments
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What’s the trend in transport rates?
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This note was uploaded on 05/19/2011 for the course BUSINESS MKT taught by Professor Johnston during the Spring '11 term at Missouri State University-Springfield.

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Episode12PPTSlidesVideo - Episode 12 Global Operations III...

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