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Creating a Logistics Plan for International Transport and Warehousing of Goods

 Strategic Logistics Management, Inc. (SLM) is a U.S.-based third party company whose primary business is to deliver logistics services. Currently, SLM manages several warehouses in Los Angeles and the New York/New Jersey area. SLM provides expertise in air and ocean shipping, customs clearance, forwarding, warehousing, and ground transportation. Over the past five years, SLM has built a successful logistics information system (LIS) that includes personnel, equipment, and technology. The decision-support systems included in the LIS are a transportation management system (TMS) and a warehouse management system (WMS).

SLM employs experienced personnel in the United States to handle a wide range of logistics activities and provide customized logistics solutions and services. The company is considering expanding their global operations to provide the same range of services in Australia, including:

  • Imports: A network of offices and trade connections to support import consolidation, provide warehousing of goods prior to customs clearance, and manage import documentation for customs formalities.
  • Door-to-door services: Cargo pickup from supplier locations and transportation of goods directly to the customer, as well as freight bookings with airlines and ocean lines to handle cargo exports from both the United States and Australia.
  • Exports: Handling of various types of cargo exports by ocean and by air, ensuring the timely movement of goods at the most competitive rates. Complete export documentation is provided.

SLM is working to secure two contracts in Australia that will go into effect next year. The first contract is with Greer Wire Company in Melbourne, Australia, to transport two million pounds of stainless steel brushfire mesh used in protecting homes in brushfire prone areas. This cargo will be shipped to Los Angeles, California. The stainless steel wire mesh is supplied in five-meter rolls with an outside diameter of 500 mm, and each roll weighs 50 kg.

The second contract is with Brooks Brothers, a clothing company located in New York City, for warehousing and transportation of clothing in various sizes of cardboard boxes that easily assemble in one unit load on a 48-inch by 40-inch pallet. The goods will be shipped from New York, New York, to Sydney, Australia. For the purpose of this assignment you can make reasonable assumptions about the weight of the boxes.

SLM will manage a rapid flow of goods to and from Australia. The proposed warehouses in Australia will be located in proximity to two large metropolitan areas, Sydney and Melbourne. In the first year of its operations in Australia, SLM plans to handle an average of 200 20-foot equivalent units (TEUs) of imports and exports between the United States and Australia every month.

You are a Logistics Manager at SLM. As part of the company’s goal to strengthen its competitiveness in the global marketplace, the CEO has asked you to design a logistics plan for the proposed warehouse operations in Australia and transportation of goods between Australia and the United States.

In your report (allowing for reasonable assumptions when necessary),

  • Select one of the two SLM contracts described above.
  • Analyze the product’s physical properties, volume, and quantities to determine if the product’s shipment size is small (150 to 500 pounds) or a larger (consolidated) shipment (at least one TEU).
  • Evaluate at least two modes of transportation that best support the organization’s supply chain for shipping the product from one country to another, door-to-door, in a multimodal shipment. Explain your reasoning.
  • Identify the type of warehouses that SLM should employ in Australia to ensure a rapid movement of goods. Recommend either public, private, or contract warehousing and explain how your recommendation supports SLM’s supply chain management.
  • List and describe the necessary commercial, banking, and shipping documents that comply with export and import procedures in the United States. These may include a commercial invoice, certificate of origin, shipper’s export declaration, shipper’s letter of instruction, bill of lading, freight bill, and letter of credit.
  • Determine the appropriate Incoterms® 2010 rule, depending on the shipment mode and buyers’ and sellers’ responsibilities.
  • Select a process (Lean, Six Sigma, Just-in-Time, or Kanban) and explain how the process can be implemented to ensure effective and efficient warehouse operations techniques are in place that support the company’s supply chain design.
  • List a minimum of four additional budget line items in the table below with a rationale to ensure smooth warehouse operations in Australia. Support your rationale by including various logistics activity measures, cost drivers, profit models, and the role of inventory and how they influence SLM’s financial outcomes.

Budget line item

Rationale

Shipment consolidation

Cost savings management

Warehouse safety and security

Efficient and safe warehouse operations

Software implementation

Order management, customer relationship management, and load-planning for a truck trailer.

The Final Paper

  • Must be 2,400 to 3,000 words (not including title and references pages), double-spaced, and formatted according to APA style as outlined in the Writing Center (Links to an external site.). Contextual (Level One) headings must be used to organize your paper and your thoughts.
  • Must include a title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must address the topic of the paper with critical thought.
  • Must include and integrate supporting information and reasoning from at least five scholarly, peer-reviewed, or other credible business sources in addition to the course text (see the Writing Center’s Integrating Research (Links to an external site.) for assistance).
  • Must document all sources in APA style as outlined in the Writing Center (Links to an external site.).
  • Must include a separate references page that is formatted according to APA style as outlined in the Writing Center. (Links to an external site.)

MGT400 Assignments Week 5 – Final Paper!

Week 5 – Final Paper

Due Monday by 11:59pm Points 25 Submi!ng an external tool

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Crea!ng a Logis!cs Plan for Interna!onal Transport and Warehousing of
Goods
Strategic Logis!cs Management, Inc. (SLM) is a U.S.-based third party company whose primary business is to deliver logis!cs services.
Currently, SLM manages several warehouses in Los Angeles and the New York/New Jersey area. SLM provides exper!se in air and
ocean shipping, customs clearance, forwarding, warehousing, and ground transporta!on. Over the past five years, SLM has built a
successful logis!cs informa!on system (LIS) that includes personnel, equipment, and technology. The decision-support systems
included in the LIS are a transporta!on management system (TMS) and a warehouse management system (WMS).

SLM employs experienced personnel in the United States to handle a wide range of logis!cs ac!vi!es and provide customized logis!cs
solu!ons and services. The company is considering expanding their global opera!ons to provide the same range of services in Australia,
including:

Imports: A network of offices and trade connec!ons to support import consolida!on, provide warehousing of goods prior to
customs clearance, and manage import documenta!on for customs formali!es.
Door-to-door services: Cargo pickup from supplier loca!ons and transporta!on of goods directly to the customer, as well as freight
bookings with airlines and ocean lines to handle cargo exports from both the United States and Australia.
Exports: Handling of various types of cargo exports by ocean and by air, ensuring the !mely movement of goods at the most
compe!!ve rates. Complete export documenta!on is provided.

SLM is working to secure two contracts in Australia that will go into effect next year. The first contract is with Greer Wire Company in
Melbourne, Australia, to transport two million pounds of stainless steel brushfire mesh used in protec!ng homes in brushfire prone
areas. This cargo will be shipped to Los Angeles, California. The stainless steel wire mesh is supplied in five-meter rolls with an outside
diameter of 500 mm, and each roll weighs 50 kg.

The second contract is with Brooks Brothers, a clothing company located in New York City, for warehousing and transporta!on of
clothing in various sizes of cardboard boxes that easily assemble in one unit load on a 48-inch by 40-inch pallet. The goods will be
shipped from New York, New York, to Sydney, Australia. For the purpose of this assignment you can make reasonable assump!ons
about the weight of the boxes.

SLM will manage a rapid flow of goods to and from Australia. The proposed warehouses in Australia will be located in proximity to two
large metropolitan areas, Sydney and Melbourne. In the first year of its opera!ons in Australia, SLM plans to handle an average of 200
20-foot equivalent units (TEUs) of imports and exports between the United States and Australia every month.

You are a Logis!cs Manager at SLM. As part of the company’s goal to strengthen its compe!!veness in the global marketplace, the
CEO has asked you to design a logis!cs plan for the proposed warehouse opera!ons in Australia and transporta!on of goods between
Australia and the United States.

In your report (allowing for reasonable assump!ons when necessary),

Select one of the two SLM contracts described above.
Analyze the product’s physical proper!es, volume, and quan!!es to determine if the product’s shipment size is small (150 to 500
pounds) or a larger (consolidated) shipment (at least one TEU).
Evaluate at least two modes of transporta!on that best support the organiza!on’s supply chain for shipping the product from one
country to another, door-to-door, in a mul!modal shipment. Explain your reasoning.
Iden!fy the type of warehouses that SLM should employ in Australia to ensure a rapid movement of goods. Recommend either
public, private, or contract warehousing and explain how your recommenda!on supports SLM’s supply chain management.
List and describe the necessary commercial, banking, and shipping documents that comply with export and import procedures in
the United States. These may include a commercial invoice, cer!ficate of origin, shipper’s export declara!on, shipper’s le$er of
instruc!on, bill of lading, freight bill, and le$er of credit.
Determine the appropriate Incoterms® 2010 rule, depending on the shipment mode and buyers’ and sellers’ responsibili!es.
Select a process (Lean, Six Sigma, Just-in-Time, or Kanban) and explain how the process can be implemented to ensure effec!ve and
efficient warehouse opera!ons techniques are in place that support the company’s supply chain design.
List a minimum of four addi!onal budget line items in the table below with a ra!onale to ensure smooth warehouse opera!ons in
Australia. Support your ra!onale by including various logis!cs ac!vity measures, cost drivers, profit models, and the role of
inventory and how they influence SLM’s financial outcomes.

Budget line
item

Ra”onale

Shipment
consolida!on

Cost savings management

Warehouse
safety and
security

Efficient and safe warehouse opera!ons

So%ware
implementa!on

Order management, customer
rela!onship management, and load-
planning for a truck trailer.

The Final Paper

Must be 2,400 to 3,000 words (not including !tle and references pages), double-spaced, and forma$ed according to APA style as
outlined in the Wri!ng Center . Contextual (Level One) headings must be used to organize your paper and your thoughts.
Must include a !tle page with the following:

Title of paper
Student’s name
Course name and number
Instructor’s name
Date submi$ed

Must address the topic of the paper with cri!cal thought.
Must include and integrate suppor!ng informa!on and reasoning from at least five scholarly, peer-reviewed, or other credible
business sources in addi!on to the course text (see the Wri!ng Center’s Integra!ng Research for assistance).

The Scholarly, Peer Reviewed, and Other Credible Sources table offers addi!onal guidance on appropriate source types. If
you have ques!ons about whether a specific source is appropriate for this assignment, please contact your instructor. Your
instructor has the final say about the appropriateness of a specific source for a par!cular assignment.

Must document all sources in APA style as outlined in the Wri!ng Center .
Must include a separate references page that is forma$ed according to APA style as outlined in the Wri!ng Center.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

Waypoint Assignment
Submission

The assignments in this course will be submi$ed to Waypoint. Please refer to the instruc!ons below to submit your assignment.

1. Click on the Assignment Submission bu$on below. The Waypoint “Student Dashboard” will open in a new browser window.
2. Browse for your assignment.
3. Click Upload.
4. Confirm that your assignment was successfully submi$ed by viewing the appropriate week’s assignment tab in Waypoint.

For more detailed instruc!ons, refer to the Waypoint Tutorial .

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