TUTORIAL 3 (Topic 2) Global Dimension of Supply Chain

TUTORIAL 3 (Topic 2)
Global Dimension of Supply Chain.
Q1. Discuss FOUR (4) modes of global transportation options. Which modes of
transportation preferred by exporter? Justify.
1. Ocean - Advantages are low rates and the ability to transport a wide variety of products
and shipment sizes. The disadvantages are long transit times(slow speed), low accessibility
and high potential of shipment damage. Ocean shipping companies comprises 3 major
categories such as Liner Service- Regularly scheduled marine transportation provided by a
carrier having a fixed port rotation. Charter vessels- Charter vessels hire on a contract basis
and travels with no set rules. Private carriers- Private carrier refers to a company that owns
the ship used to transport its own goods. A private carrier does not transport goods as its
primary business and, thus, does not seek to transport the goods of other companies like a
common carrier does. In this sense, a private carrier is not a for-hire carrier and does not
carry the goods of other companies as its primary business.
2. Air – Advantages are the fast transit times that air transport provides had impact on global
distribution, it also comfortable and quick services. The nature of air cargo mostly high value,
low density items cause the total value of airfreight cargo to be a greater proportion of the
world. The disadvantages are high costs, it is the costliest means of transport. The fares of air
transport are so high that it is beyond the reach of the common man.
3. Motor – often use when shipping goes to destination country and commonly use in
Europe. The advantages are the speed, safety, reliability and accessibility. The disadvantages
are accidents and breakdown, there are more chances of accidents and breakdowns in case of
motor transport. Thus, motor transport is not as safe as rail transport.
4. Rail - Rail transport is also known as train transport. It is a means of transport, on vehicles
which run on tracks (rails or railroads). It is one of the most important, commonly used and
very cost effective modes of commuting and goods carriage over long, as well as, short
distances. The advantages are this is the cheaper transport, rail transport is economical in
the use of labour also as one driver and one guard are sufficient to carry much more
load than the motor transport and it also safety. The disadvantages are Lack of Door
to Door Service, rail transport cannot provide door to door service as it is tied to a
particular track and it also lack of flexibility.
It depends on the goods that the exporter wants to send. If it is a valuable letter and rotten
goods, it must be transported by air, but the cost will be higher. In addition, if exporters want
to transport large quantities of bulky items, they must use water transportation, because it has
a large storage space and the cheapest freight, but it is easily affected by the weather and the
transportation time is slow.
Q2. Differentiate between foreign freight forwarder and non-vessel operating common
carrier.
Foreign Freight Forwarder

Employs individuals who are knowledgeable in all aspects of international shipping, supplies
its expert to small international shipper that find employing individuals their shipment
department become uneconomical. Besides, freight forwarders arrange the best means of
transport, taking into account the type of goods and the customers’ delivery requirements.
They use the services of shipping lines, airlines and road and rail freight operators. In some
cases, the freight forwarding company itself provides the service. The principles of freight
forwarding are premised on the efficient and cost-effective transfer of goods that are
maintained in good condition throughout their travels. 雇用在国际运输的各个方面都知识
渊博的个人，为发现雇用个人他们的运输部门变得不经济的小型国际托运人提供专家。
此外，货运代理会根据货物类型和客户的交货要求，安排最佳运输方式。他们使用航
运公司、航空公司以及公路和铁路货运运营商的服务。在某些情况下，货运代理公司
自己提供服务。货运代理的原则以在整个旅行过程中保持良好状态的货物的高效和具
有成本效益的转移为前提
Non-Vessel Operating Common Carrier (NVOCC)

Non -Vessel Operating Common Carrier (NVOCC) is an ocean carrier that transports goods
under its own House Bill of Lading, or equivalent documentation, without operating ocean
transportation vessels. NVOCC also common carrier consolidates and dispense containers
that originate bound to inland points. The need for these firms arise from the inability of
shippers to find outbound turnaround traffic after unloading inbound containers at inland
points. NVOCCs make the entire process of importing or exporting cargo hassle-free and
cost-effective by being the single point of contact for the customer. This arrangement is
found to suit small and medium-sized organizations rather well. Non-Vessel Operating
Common Carrier (NVOCC) 是一种海运承运人，根据自己的提单或同等文件运输货物，
不运营海运船舶。 NVOCC 还通过公共承运人整合和分配源自内陆点的集装箱。对这
些公司的需求源于托运人在内陆点卸货后无法找到出境周转流量。无船承运人通过成
为客户的单一联系点，使进出口货物的整个过程变得轻松且具有成本效益。发现这种
安排非常适合中小型组织。
Q3. Justify the role of export management companies (EMC) in managing supply chain
global environments.
Independent private company that acts like an export department for several non-competing
manufacturers and suppliers. Export management companies can be quite varied.; they can be
either local or foreign-owned, and operate on either a commission (as an agent), a fee basis
(as a consultant) or taking possession of the goods for direct export. The EMC also has the
ability to appoint sales representative in importing countries, promote goods and services of
its clients, arrange transportation, provide warranties and after-sales-service, and extend
import credit. Generally, the EMC buys the product from a manufacturer and marks up the
price to cover their profit. This is called a buy-resell arrangement. The advantages are its an
almost risk-free way to begin. It demands minimal involvement in the export process. It
allows you to continue to concentrate on your domestic business. 独立的私营公司，充当多
个非竞争制造商和供应商的出口部门。出口管理公司多种多样。他们可以是本地的或
外资的，并以佣金（作为代理）、收费（作为顾问）或占有货物进行直接出口的方式
经营。 EMC 还可以在进口国指定销售代表，推广其客户的商品和服务，安排运输，
提供保修和售后服务，并提供进口信贷。通常，EMC 从制造商处购买产品并加价以弥
补他们的利润。这称为买卖安排。优点是几乎没有风险的开始方式。它需要最少的出
口过程参与。它使您可以继续专注于国内业务。
Q4. Elaborate the role of bonded warehouse 保税仓库 in managing storage facilities supply
chain.
Bonded warehouses store unpaid taxable goods that are imported, exported, and re-exported.
It is very important for merchants in the business chain. For example, it provides merchants
with the convenience of storing unpaid taxable goods or raw materials and paying taxes only
when they are picked up. Allowing businessmen to use funds flexibly. In addition. Merchants
can also inspect goods or raw materials in the warehouse, but they must be supervised by
customs officers. Besides, the most significant advantages of a Customs bonded warehouse is
how convenient it is for businesses that ship internationally. A business can import goods to a
Customs bonded warehouse across the world and store it there until further notice without
paying any duty fees.
Q5. Lists 5 global chain issues in Malaysia
- Seasonality issues
- Improper supply chain management/ handling
- Inconsistent and inadequate supply 供应不一致和不足
- Insufficient EUROGAP/GLOBAL GAP compliance
- Fluctuating currency value (MYR)

TUTORIAL 3 (Topic 2) Global Dimension of Supply Chain

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TUTORIAL 3 (Topic 2) Global Dimension of Supply Chain

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TUTORIAL 3 (Topic 2)

Global Dimension of Supply Chain.

Foreign Freight Forwarder

Non-Vessel Operating Common Carrier (NVOCC)

Q5. Lists 5 global chain issues in Malaysia

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