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ISQA 479. Warehouse Locations International Issues. Vale Brasil. VALE BRASIL.

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isqa 479

ISQA 479

Warehouse Locations

International Issues

vale brasil3
VALE BRASIL

Flag SINGAPOREDWT 400,000 tonnesSpeed (knots) 14.8Draught (m) 23.00 (75.46 ft)Depth Moulded (m) 30.40 (99.74 ft)Breadth (m) 65.00 (213.25 ft)Length 362.00 (1,187.66 ft) (LO)Engine MAN-B&W 7S80ME-C8Power 27,162 (Kw)

For Distribution of Iron Ore to China

distribution strategies
Distribution Strategies
  • Customer Locations
  • Supplier Locations
  • Numbers of DCs
  • DC Locations
  • Inventory Strategy
    • What to Stock
    • How Much
    • At Which Locations
  • Transportation Strategies
warehouse locations
Warehouse Locations
  • 1 Warehouse: Henderson KY 2.28803
  • 2: Ashland KY; Bakersfield CA 1.48487
  • 3: Allentown PA; McKenzie TN; Bakersfield CA 1.29378
  • 4: Lancaster PA; Meridian MS; Chicago IL; Bakersfield CA 1.20316
  • 5: Summit NJ; Dallas TX; Macon GA; Chicago IL; Bakersfield CA 1.13264
  • 6: Summit NJ; Dallas TX; Macon GA; Pasadena, CA; Chicago IL; Tacoma WA 1.08236
  • Yellow: Days in Transit Green: Miles
warehouse locations6
Warehouse Locations
  • 7: Summit; Chicago; Tacoma; Gainesville; Dallas; Lakeland, FL; Pasadena 1.07216
  • 8: 7 Plus Denver CO 1.05200
  • 9: Summit; Chicago; Alhambra CA; Gainesville; Dallas; Tacoma; Lakeland; Denver, Oakland CA 1.04187
  • 10: Newark NJ; Rockford IL; Alhambra CA; Mansfield OH; Gainesville GA; Palestine TX; Tacoma WA; Lakeland FL; Denver CO; Oakland CA 1.04173
international transport issues
Containerized

Container Acquisition

Inland

Wharfage and Handling

Loading

Transit

Wharfage and Handling

Inland

Final Delivery

Bulk

Ship Charter

Inland Transport

Bulk Loading Facility

Stow and Trim

Transit

Bulk Unloading Terminal

Inland Transport

Final Delivery

International Transport Issues
international issues
International Issues
  • Documentation
    • Certificates of Origin
    • Export Permits and Documentation
    • Inspection Certificates
    • Import Documents
    • Duties and Tariffs
    • Health/Pest Inspections and Certificates
    • Others
international issues9
International Issues
  • Payment
    • Up Front
    • On Account
    • Letters of Credit
      • Irrevocable
      • Confirmed
      • Standby
goals of supply chain management
Goals of Supply Chain Management
  • Quality
  • Time
  • Reliability
  • Flexibility
  • Cost
supply chain risks
Supply Chain Risks
  • Social and Religious Conflict
  • Terrorism
  • Natural Resource Dependency
  • Natural Resource Depletion
  • Supply Chain Uncertainty
  • External vs Internal Risks
slide13

Correct Transaction Cost

Total trans. cost

Cos t s

Logistical cost

Material cost

Admin cost

Transaction origin

Transaction conclusion

Time

typical measured costs
Typical Measured Costs
  • Material Cost
  • Service Cost
  • Administrative Cost
    • PO Cost
    • Receiving
    • Accounts Payable
  • Freight
costs typically not measured
Back Orders

Late Deliveries

Defective Material Costs

Costs of Rejected Goods

Prod’n Stop Costs

Project Delay Costs

Air Freight

Cost of Warranty Failures

Extra Inventory Cost

Services Incorrectly Performed

Invoice Errors

Highly Variable Lead Times

Freight Damage

Costs Typically Not Measured
slide16

Time delay

Invoice errors

Cost overrun

Freight damage

Cos t s

Total trans. cost

Raw material delays

Specification questions from supplier

Transaction origin

Time

Expected transaction

Actual conclusion

additional supply and logistics risks
Additional Supply and Logistics Risks
  • Origin Risk Analysis
    • Natural Disasters
    • Labor Issues
    • Political Issues
  • Logistics Risk
    • Capacity
    • In-transit Loss or Damage
    • Labor Issues
    • Clearance Delays
    • Infrastructure Constraints
additional supply and logistics risks19
Additional Supply and Logistics Risks
  • Inventory Risk
    • Loss or Damage
    • Obsolescence
    • Shrinkage
  • Technology Risk
    • Bad Selection Process
    • Lack of Training
    • Late Adoptor
internal risks
Functional Issues

Engineering Late

Sr Mgmt Approval

Poor Specifications

Specifications Late

Rush Orders

Poor Forecasting and Planning

Policy Issues

Cheapest Supplier

No Standardization

No Supplier Visits

Outsourcing

Lean

FOB Destination

ERP Selection

Internal Risks
external risks
Supplier Risks

Late Shipment

Quality

Financial Failure

Costs

Logistical Risks

Late Shipment

Freight Damage

Capacity Issues

Infrastructure

Costs

Global Risks

Global Economy

Currency Fluctuation

Political Instability

Natural Disasters

Raw Material Availability

National Risks

Inflation

Retirements

External Risks
infrastructure risks
Infrastructure Risks
  • Infrastructure Deteriorating Faster than Repair
  • Congestion at All Levels
  • Difficulty Locating Logistical Capacity
  • Increased Lead Times
  • Increased Inventories
  • Increased Costs
  • Increased Supply Chain Uncertainty and Risk
  • Losing Ground to Other Countries
risk management
Risk Management
  • Identify Risk
  • Assess Probability
  • Devise Strategies
    • Proactive
    • Reactive
  • How to Eliminate High Probability/Low Cost Events
avoiding extra cost risk
Avoiding Extra Cost Risk
  • Good Specifications and Statements of Work
  • Quality Control and Monitoring
    • Rule of 10
  • Expediting
    • On Time Delivery
  • Logistics Management
    • Freight Damage
    • Correct Delivery
  • Holding Suppliers Accountable
impacts of supplier failures
Impacts of Supplier Failures
  • Air Freight Study
    • 50% is from Supplier Failures
  • Construction Project Study
    • From 16 to 23 Percent of ENTIRE Project Costs Attributed to Quality Failures
  • Increasing Focus on Supplier Accountability
risk management26
Risk Management
  • Global Supply Chains Increase Risk
  • Continuity (Risk) Planning
    • Suppliers’ Plans
    • Carriers
    • Geographic Dispersion of Suppliers
    • Emergency Inventory
risk management27
Risk Management
  • Good Forecasting
  • Intense Market Study
  • Careful Supplier Selection
  • Superior Supplier and Carrier Communication
  • Problem Prevention Plans
    • Comparison to Disaster Planning
risk management28
Risk Management
  • Disaster Planning
    • Natural Disasters
    • Supplier Failures
      • Financial
      • Labor Interruptions
  • Supply Chain Risks
    • Security
    • Conformance
    • Supplier Environmental and Social Responsibility