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Yanpanyu trade 2012 IntroductionThis report will explain the process of physical distribution management in importing and exporting fir an organization and analyzing and evaluating the international distribution function of an organization for delivery and cost of delivery of goods. The next will explain the factors affecting the movement of an export or import order. 1. Roles of Physical Resources ManagerThe physical resource manager in Angus Glen is responsible for set the logistic and distribution plan and as a result lowers the overall cost. To be more specific, the four main tasks for physical resource manager include ordering process, inventory control, warehouse and transport. Ordering process requires managers integrates picking, packing and delivery of the packed items to a shipping carrier. Inventory control requires managers maintain the exactly inventory level that the company needs, neither more nor less, which is the key element lower the cost. Warehouse requires manager decide the location of the warehouse, like near the market or near the factories. For transport, managers should ensure the right products are delivered to the right location on time and at a good cost. 2. Structure of International Trade DepartmentAngus Glen International Trade departments, including the ordering process, inventory control, warehousing and transportation. Because warehouse and transport sectors already exist company, so it only needs to be combined into the international trade sector.Order processing service selection, sorting, pre-consolidation and integration of merchandise. At Angus Glen, the number of employees in designated collection bottle before shipment and to meet customer orders. Bottles are sorted according to separate destinations, this process can improve the companys efficiency and avoid errors. Weight, labeling and packaging of bottles of pre-consolidation process. Finally, integration, staff collects package for loading unit transmission and control of lading. Ordering process ready for shipment. (Wikipedia, 2014)Inventory control international trade sector is an important sector, as it can reduce costs. The main activities in the inventory control department and complete control of raw materials control. Inventory control needs of employees in this sector can anticipate and meet the computing needs of raw materials and finished products are not placed in the warehouse for a long time, to maintain a safety stock level.Transport authorities should arrange shipment date and minimize costs by them, and view the available shipping options. They may look at rail or road transport alternative program delivery costs, while using air as a matter of urgency. Exports of goods, they are more sea or air time and cost. Whenever possible, the staff aims to combine the loaded truck or container transport costs to a minimum. When they use their own trucks, they also try to book the return load most cost-effective use of their fleet.3. International Trade Department that links with internal bodiesThe relationship between International trade department and production department can be described as international trade department provides the sources for production department. As it mentioned before, international trade department provide raw material source for production department. What is more, international trade department and production department have to work together to control the stock level.Research and development department is related to a companys future. International trade department provide the up to date information for R&D department and then develop the new product. International trade development also helps promote the new product to the international market.International trade department is operates under the senior management. So it is necessary that they communication efficiently. Senior management has to make the aims and objectives clear so that the international trade department has the motivation to work. The senior management also revises the operation plan accounting to the feedback of international trade department.4. International Trade Department that links with external bodiesInternational trade department has a close relationship with the international freight transport of goods rely on them. In this case, because Ecosse hotel is one of the major customers who Angus Glen, operating outside the UK in different countries, so Angus Glen International Agencies need to help them send goods to end customers.Suppliers also have close relationship with the international trade department, suppliers of raw materials of the company. No supplier, the company may not be able to conduct business successfully. Angus glen suppliers including the bottle and pallet suppliers. Without them, Angus glen will not be able to continue Ecosse hotel contract.There is no doubt that local government and the international trade department. International trade department want to export goods, and then they should have negotiations, by the local governments permission. More importantly, because of the complexity of international business, this is reflected in different laws or regulations, such as the company may require the assistance of the local government.The local carrier also with the international trade department. In general, the company does not have its own fleet depend on the local delivery carrier. In this case, Angus glen rely on local carrier transporting bottled water directly to the customer and collect and transport the new signature bottle from Blackburns supplier, which means that a lot of business Angus glen.Outcome 21. International transport modesModeTotal mode costCost per palletTransit timeModeAdvantagesMode disadvantagesSea620.0024.807 DaysIt is an ideal mode for transporting heavy and bulky goods. What is more, it is suitable for products with long lead times and the cost is low.It requires long delivery time and easily affected by bad weather. It is difficult to monitor exact location of goods in transit.Air1,265.00253.004 HoursAir transport is the quickest mode. It doesnt require infrastructure investment of tracks like railways. It has no physical barrier.Air transport is very costly and capacity is small. It is also easily affected by weather.Rail1,275.0051.002 DaysIt is the second fast mode and the capacity is big. It is also a safe and reliable mode of transport.It subject to unforeseen delays and reliance on rail freight operators timetable.Direct road1,350.0067.503 DaysIt is ideal for short distances and perishables transport. It is easy to monitor location of goods and easy to communicate with driver.Transport subject to traffic delays and breakdown. The goods are easily susceptible to damage through careless driver.Multi-mode1,185.0047.408 DaysIt will give the maximum strength of various kinds of mode of transport.It is also limited by the disadvantages of various kinds of transport mode.2. Consignment delivery termsInitial Incoterm DescriptionEXWEx Works (named place of delivery) The buyer is responsible for uploading. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a seller has the goods ready for collection at his premises on the date agreed upon. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. The seller doesnt load the goods on collecting vehicles and doesnt clear them for export.FCAFree Carrier (named place of delivery)“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the sellers premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.CPTCarriage Paid To (named place of delivery)“Carriage Paid To” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.CPTCarriage Paid To (named place of delivery)“Carriage Paid To” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.CIPCarriage and Insurance Paid to (named place of destination)Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller also contracts for insurance cover against the buyers risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.DATDelivered at Terminal (named terminal at port or place of destination)“Delivered at Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.DAPDelivered at Place (named place of destination)“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.DDPDelivered Duty Paid (named place of destination)“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.Incoterm 2010 Export-Customs declaration Carriage to port of export Unloading of truck in port of export Loading charges in port of export Carriage (Sea Freight/ Air Freight) to port of import Unloading charges in port of import Loading on truck in port of import Carriage to place of destination Insurance Import customs clearance Import taxes EXWBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerFCASellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerCPTSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerCIPSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerDATSellerSellerSellerSellerSellerSeller SellerSellerBuyerBuyerDAPSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerDDPSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller3. Consolidation and groupage arrangementsDefinition of Groupage Groupage is the grouping together of several different consignments into a full trailer or container load. Its also known as consolidation, this is more often than not the cheapest and most efficient way to transport goods.Consolidation Cargo consolidation service provided by a freight forwarder in which several smaller shipments are assembled and shipped together to avail of better freight rates and security of cargo. Also called assembly service, cargo consolidation, or freight consolidation. The consolidated warehouse serves as a point of departure for regular transportation of groupage cargoes for purposes. Cargoes will be consolidated and packaged at a consolidation warehouse.Circumstances when they could be used When the transit time is allowable and the cost effective pallet level is necessary. Under emergency situations, cargo delivery time is supposed to quicker than the multi-modal transit time.Cost effective pallet load level Because the direct road total cost is 1,350, and the pallet transporters price per pallet is 108. So the cost effective pallet load level is 12.5 (1350 divided108). In conclude, direct road is more cost effective if the load is more than 12 pallets.4. The least total cost conceptAll logistics is the concept of the lowest cost decision offers the option of equality should support all logistics service level, to minimize the total cost and not be used to reduce the cost only in one area, such as lower freight.RouteModesLeast total cost(Excluding standard on costs such as customs, insurance, etc) Kirriemuir-Coatbridge,Coatbridge-SouthamptonSouthampton-Port de MontralPort de Montral-BouchervilleRoadRailSeaRoad3,313.00 (32 Days)(Alternative Tisbury route costs)Kirriemuir-TilburyTilbury-Port de MontralPort de Montral-BouchervilleRoadSeaRoad3,415.00 (24 Days)Note - These figures include all transport, loading and average demurrage costs plus a cost for container hire and insurance over the full transit period including demurrage time.Aspects of benefit, Angus glen should choose line 1 because the total cost is 3313.00, below 3415.00 line 2. However, if the customer need speed, so Angus glen should choose line 2, 8 days faster than 1.5. The integration of international distribution procedures and documentationAreaProcedureDocumentationTransportPre-transportTransportOfficial proceduresSeaway BillAirway BillBill of LadingCRM NoteCommerceContract proceduresPreshipment/transportPro-formal invoiceCommerce invoiceCustomsOfficial procureCommerce invoiceBill of LadingSea waybill is different from the traditional bill of lading is that they are not the title of the document. In operation is similar to the air freight invoice, they are by the named consignee and release after identification. It is not necessary for the consignee to produce an initial so they dont need the title of the document is suitable for open account transactions. They are also suitable for the trade between the parent and subsidiary companies or to avoid delay and demurrage coastal journey.Airway Bill or air consignment note is a receipt issued by an international airline for goods and an evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the air waybill is non-negotiable. The air waybill is the most important document issued by a carrier either directly or through its authorized agent. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.Bill of ladingis a document issued by a carrier to a shipper of goods. It is a negotiable instrument, and it serves three purposes: it is a receipt for the goods shipped; it evidences the contract of carriage; it serves as a document of title (i.e. ownership).CRM Note is a United Nations Convention that was adopted into English law by the Carriage of Goods by Road Act 1965. It defines the rights and obligations of the sender and carrier in any contract for the international carriage of goods by road. With certain minor exceptions a CRM Note must be carried on all hire and reward journeys involving international road transport within counties that are signatories to the CRM convention. All the counties of the EC are members and, as such the CRM note is possibly the most widely used transit document in intra-EC trade. (SQA, 2014)Pro-formal invoice is not a true invoice, it is simply a document that declares the sellers commitment to provide the goods or services specified to the buyer at certain prices. Pro-formal invoices are not recorded as an account receivable by the seller nor are they recorded as an accounts payable by the buyer. (SQA, 2014)Commerce invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System codes for those goods. A commerce invoice must also include a statement certifying that the invoice is true, and a signature.A commerce invoice is used to calculate tariffs, international commercial terms (like the Cost in a CIF) and is commonly used for customs purposes. Outcome 31. Requirements for packing and marking the individual bottles, and pallets and the containers used to ship the goods to CanadaThe aim of packing is to ensure the customer receives the goods in the expected condition.In this case, in order to packing the bottles accounting to different transport, the bottles will be lo
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