Case study-3 Global Value chain

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Algonquin College *

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Industrial Engineering

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Apr 3, 2024

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Submitted to: Prof. Marco Nina GLOBAL VALUE CHAIN CASE STUDY-3 Submitted by:

Introduction: In this Case Study, we follow Mario, the recently hired supply chain manager at Excel Air Enterprises Inc., a South Carolina-based American manufacturer of painting and air blasting equipment. Bangladesh is the only new market that Excel has entered, and its only client there is Modu Equipment. Vivek Sharma, the president of Modu, voiced displeasure with Excel's performance, citing missing documentation, product delivery delays, and other problems. Mario intervenes to investigate the matter and finds that the company's shipping and logistics procedures are facing several difficulties. Mario finds himself navigating several challenges to address the matter and preserve his connection with Modu Equipment, from problems with packing and containerization to hold-ups in transportation and customs clearance. In worldwide distribution, this case study emphasizes the significance of excellent communication, appropriate packing techniques, regulatory compliance, and efficient transportation methods. Mario's attempts to overcome these obstacles show how important supply chain management is to maintain efficient operations and happy customers in international value chains. Question-1 a) Identify the challenges Mario faced with shipping the products to Modu Equipment. Answer- There were many challenges faced by Mario with shipping the products to Modu Equipment: a) Failed in delivery on time: Failure to deliver the products on time to Modu Equipment. They promised to deliver within 4 weeks in the month of January, but they could not even deliver in March. Moreover, they failed to notice the flagged item “motor wheels” which Modu required on priority and sent the item along with other products, which would cause Modu to delay in turn to deliver motor wheels to its client. b) Lack of complete set of documentation: Modu Equipment have been waiting for completing the documentation by Excel. They wanted Excel to send the signed statement certifying the country of origin of the products and the products were in accordance with invoice. But there was no initiative taken to send the document yet. c) Gap in proper coordination between the supply chain manager and the warehouse manager: Keith, the warehouse manager didn’t coordinate and communicate the actions taken by the warehouse to the supply chain manager. There were many decisions taken without involving the supply chain manager. Keith did not consult Mario before deciding to send motor wheels along with other cargo items. Moreover, he did not consult on the facts about what kind

of filling materials are required to pack motor wheels or small items when being sent together with large protruding products. This was negligence on part of warehouse manager. d) Inappropriate Shipping container, lack of transportation requirements knowledge: The warehouse manager reported that someone ordered a closed top container which wasn’t a good fit for loading tall and huge products as for lifting by the cranes and putting the product on the deck they needed forty-foot container with open top. Hence, they did not send the vacuum equipment. They also opened the light box component of blast cabinet to match the container height regulation and now they are waiting for the engineer to modify and make it suitable for shipment. e) Contract with Demplar and shortage of truck drivers: There was no written contract in place between Excel and Demplar (Low-cost US Carrier), it was solely operating on basis on basis of verbal contract. Also, on enquiry Mario found that Demplar will not be able to provide services for another 5 days because of shortage of drivers. b) What steps could have been taken by the previous supply chain manager and owner to prevent these challenges? Answer- The previous supply chain manager should have taken care of the following things: a) Categorizing the products in purchase order as per their urgency. Flagged items to be taken care separately. b) Having a proper written contract in place with Demplar Logistics. c) Proper documentation of decisions being taken on which type of container to be ordered and checking the stock and updating the stock for “filling material” which is very important for shipping products. d) He could have sent the signed statement for origin of products to complete the set of documentation. The documentation is an important part of shipping agreement and it’s the importer’s responsibility to see that it is complete. e) Finally, for a proper and wholistic logistics experience, he should have used a full range service provider such DWE for door-to-door experience. Instead of trying to save cost on it by limiting the services to only as shipping agents and customs broker. f) The previous supply chain manager and owner should have maintained proper records and documents of Modu equipment’s order such as what to supply and how to supply. g) Keep records of any deal or partnership ever happened between excel and Dampler logistics. h) He should provide all the information of company and supply of their products to new supply chain manager.

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