Part 3 LSP is under constant pressure to improve its products. In particular, reducing weight allows for better performance. LSP's design team has found a potential new supplier of the materials that make up the window frames that can significantly reduce the overall weight of the windows. The new plastic frame material is available from a supplier in Belgium. That supplier will only work under FCA terms. This will require LSP to take on new responsibilities that the existing frame supplier from Germany had performed. You have been asked to consider this potential change from a logistical perspective (both advantages and threats) and report back to the senior management team. Specifically, you have been asked to: 1. Provide a description of the potential insurance clauses that could be purchased and a recommendation on the coverage that LSP should purchase for the new Belgian plastic. 2. Provide a description of the role and function of an international freight forwarder and a recommendation on using one for the window frame materials.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Part 3 LSP is under constant pressure to improve its products. In particular, reducing weight allows for better performance. LSP's design team has found a potential new supplier of the materials that make up the window frames that can significantly reduce the overall weight of the windows. The new plastic frame material is available from a supplier in Belgium. That supplier will only work under FCA terms. This will require LSP to take on new responsibilities that the existing frame supplier from Germany had performed. You have been asked to consider this potential change from a logistical perspective (both advantages and threats) and report back to the senior management team. Specifically, you have been asked to: 1. Provide a description of the potential insurance clauses that could be purchased and a recommendation on the coverage that LSP should purchase for the new Belgian plastic. 2. Provide a description of the role and function of an international freight forwarder and a recommendation on using one for the window frame materials. 

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