Episode12Readings - Blueprints, January 2007 Supply-Chain...

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Blueprints , January 2007 Supply-Chain Solutions The Import Process By Brian J. Gibson, PhD When shopping in the supermarket produce section, consumers may not think about the origin of the fruits and vegetables available for purchase. Given its freshness, and the climate diversity of our country, it is easy to assume that the produce is domestically grown. In reality, more than 16.8 million metrics tons of fresh and processed produce valued at over $13.8 billion will be imported to the United States in 2007, according to the United Stated Department of Agriculture ’s (USDA ’s ) Outlook for U.S. Agricultural Trade .‖ Overall, USDA estimates that imports account for 23.1 percent of U.S. per capita fresh and frozen fruit consumption and 16.6 percent of fresh and frozen vegetable consumption in a 2003 Economic Outlook Report. The imports of the produce industry provide consumers with year-round access to reasonably priced, high quality fruits and vegetables and the network of supply-chain participants facilitating the timely flow of goods from growing fields to the marketplace is complex. Using Chilean table grapes as an example, this installment of Supply-Chain Solutions will provide insights into the import process. This process involves a number of key players including the importer who purchases the grapes from Chile and resells them domestically, the exporter who sells the Chilean grapes to U.S. and other foreign customers, and the fruit growers. Supply chain flows are handled by transportation companies who provide origin to port and port to destination deliveries, ocean carriers who handle the long international moves, and intermediaries (freight forwarders, customs brokers, stevedores, etc.) who manage export and import processes. Detailed explanations of critical export-import flows, participant roles, and produce-specific challenges are provided within the context of this Chilean grapes example. Table Grapes: An Import Example Importing grapes is not as straightforward as buying them from a domestic grower. Greater distance and cycle time, multi-modal transportation, and the ever-present government regulations that add significant complexity to the Chilean grapes supply chain. Chilean table grapes are primarily grown in the region between Santiago and La Serena, Chile and shipped to the U.S. from November to mid-April. In 2005, Chile accounted for 71 percent of all U.S. table grapes imports, more than 439,000 metric tons, according to the USDA Foreign Agricultural Service. Key East Coast entry points include the Philadelphia Regional Port Authority’s Tioga Marine Terminal and the Port of Wilmington in Delaware, while the Port of Los Angeles is a primary West Coast entry point. Grape buyers must manage information effectively as well as manage product to achieve cost-effective,
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This note was uploaded on 05/19/2011 for the course BUSINESS M 350 taught by Professor Johnston during the Spring '11 term at Missouri State University-Springfield.

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Episode12Readings - Blueprints, January 2007 Supply-Chain...

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