3. BACKGROUND SUPPLIERS PRODUCTION TCO
“Our mission is to offer our clients the ability
to achieve successful international trade
relations in order to provide their customers a
superior value in their product.”
-Atlas Logistics Consulting Company
4. BACKGROUND SUPPLIERS PRODUCTION TCO
4
B
C The Better Baby Boomer Blender Company
SITUATION- 4BC is introducing a new product and wants to invest
in expanding their operations internationally.
TASK- Select four countries out of the twelve available options then
create a supply chain strategy for those countries chosen.
PROBLEM- Reduce the current domestic inventory cost which is
$12.38. Create a production schedule to ensure on-time delivery.
STRATEGY- Develop metrics to compare and contrast each
supplier, then rank them accordingly.
5. • Demand is constant throughout the year.
• Venders supplier will be running 24/7.
• Our suppliers will be on contract and will abide by those
terms stated in the contract.
• If Brazil is chosen as a supplier, we will not need to use the
Panama Canal and will adjust the lead time accordingly.
BACKGROUND SUPPLIERS PRODUCTION TCO
15. BACKGROUND SUPPLIERS PRODUCTION TCO
• Under FCA – Free Carrier
• Commercial Invoice
- Proforma invoice
• Certifications:
- Manufacture: Origin – Department of commerce
- Inspection and Analysis: done by third party to
ensure conformity
- Analysis: composition i.e. polymers
- Free sale: industry regulated standards i.e. USDA &
EPA
20. • Will perform audits based on how critical supplier
is and the part they produce
• Will provide support based on how critical
supplier is
• Encourage our suppliers to become ISO Certified
• Work with suppliers to become more lean
BACKGROUND SUPPLIERS PRODUCTION TCO