Logistic Management for Civil Engineering Contractor Building Roads in Northern Territory - Coursework Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Course : xxxxxxxxxxx Title : Logistics Management Tutor : xxxxxxxxx @ 2009 Table of Contents Table of Contents 2 Logistic Management for Civil Engineering Contractor Building Roads in Northern Territory 3 Abstract 3 Introduction 4 Bill of Entry 7 Scrutinization of the Documents 9 Control of the Requirements 11 Conclusion 13 Bibiliography 14 Logistic Management for Civil Engineering Contractor Building Roads in Northern Territory Abstract Foremost, the firm should identify the firms located at Japan that are in a position of provided the wheel dozers of the best quality and also the firm that is most relaible. After identification, the engineering firm should place an order with the most appropriate firm and place an order with the firm. A negotiation should follow and if the firm identifies the firm with the best terms and agrees on the terms, the whole process of procuring the wheel dozers should begin. The firm should then make the required payments and make arragements on how the cargo is likely to get transported from Japan to Australia. Since wheel dozers are heavy loads, the firm can opt for sea freight means of transport to get the cargo to Australia. All the transport charges and other expenses should be catered for. Moreover, the firm should ensured that the cargo is well packaged before its transit to prevent it from damages which can arise from some risks. Once the consignment arrives at the port, custom clearance should be done in addition to the inspection of the cargo and the verification of all the documents used in the whole transaction. Finally, after the consignment is cleared and authorized to leave the port, there should be available means of transport to get the consignment in order to transport the wheel dozers to the firm’s required site. Introduction Logistic management refers to the component of supply chain which deals with planning,implementation as well as the controllement of efficient,successful and reverse flow in addition to storage of goods and services and other interrelated information from the point of origin to the point of consumption. This is meant to ensure that the whole process meets the customer and legal requirements. The person who works in the field concerning logistics management is known as a logistician (Timothy 2009). The first thing should be for the engineering firm to identify the potential company supplier in of bulldozres within the Japan. The management team should try to research and find out the most reliable and efficient company of heavy machineries within Japan to ensure that the company the firm finally relies on is in a position to provide durable and worthwhile wheel dozers. After identifying all the potential suplies, the firm should then choose a few possible suppliers and communicate with them. After this, the firm should narrow down the companies that it wants to work with and discuss the terms and charges as well as the trade relationship. Eventually, the firm should settle for the company that is most suitable to the firm and the company that has the best trade terms (Lambert 2003). The engineering firm’s management team should then make sure that the trade terms are understood and then make use of them. Before placing the order of the wheel dozers, the company should again confirm with the identified supplier regarding the shipment terms. The most popular shipment terms are “FOB and “CIF” in addition to the payment terms. This is because these are closely interrelated with the landing expenses calculation and risk assesment (Srikanth 2006). The engineering firm is supposed to consult an import management company and freight fowader in order to provided with the breakdown of the charges and the risks concerned with the whole importation process of the wheel dozers. The engineering firm should understand the payment terms and should equire and pay the required deposit when ordering for the bulldozres and pay the remaining money when the cargo ships. This down payment is meant to provide the supplying company with the required finances in order to start the prodction of the ordered product, in this case the wheel dozers. These are negotiable so the firm can negotiate for the terms that are most suitable to it. The austrilian engineering firm shoud carry out the required research and homework on compliance matters. The firm should understand and wholly comprehend the relevant import compliace regulations beforehand. Apart from the the Austrilia/ Japan customs and border protection, there are other government authorities that regulate the importation of goods. Furthermore, the engineering firm should choose a freight forwarder and customs house broker to facilitate the whole importation process. The management team of the engineering firm should make sure that the local international trade organisation is visited as well as the customs office to get the list. The firm ought to visit them and choose the broker who is most suitable to the. The firm should give more attention to the individualized services sice the personalized services offers more attention in the whole process (Timothy 2009). The firm should then place a written purchase order with the selected company incase everything goes on well. The firm should also appoint a company to be responsible for inspection of its cargo to check and verify the wheel dozers at the site within the factory and provide the company with a detailed report. This should be done a few days before the anticipated shipment to allow the company to have an opportunity to deal with any matters that would be raised. This will also allow the engineering firm to get wheel dozers that are not defective and that are corforming. The department concerned with management within the engineering frim should also make sure that the transportation is tracked and the customs is cleared. The forwarder and the customs broker should be responsible of transporting the wheel dozers and clearing the the customs. Nevertheless, the firm should also track the whole process and any assistance, for instance like availing supplementary wheel dozer’s information and endorsing the funds involved in the landing of the consigment. The importing firm, engineering firm should give the attorney power to the firm’s broker and purchase customs bond for the wheel dozer’s importation. Compliance with material management and logistics processes for the importation of the wheel dozers should be be ensured and confirmed. The company should work with the expeditors, customs, tose concerned with inspection as well as those who provide logistics in japan, material controllers and team that is wholely dealing wit the importation ofthe wheel dozers to effectively make sure that material is available in Japan and fulfills the shedule,quality and logistic expense reqiurements. Moreover, the logitics team should ensure that shipping terms meet the project requirements and specifications and the proactive measures should be performed to inncase the shedule is jeoperdized because of transit times ans OS and D’s. The shipment and import documentation should be handled carefully including breaking the bulk of the cargo to ease the transit of the goods (Taylor 2009). Since the wheel dozers are not perishable and are heavy, ocean freigt could be considered since it is an effective and cheap mode of transport. Ocean freight is very helpful when transporting heavy freight. The wheel dozers thus will be transported from Japan to Austrilia whereby from there the wheel dozers will be transported using the road means to the site of construction. The freight forwarder will be responsible for moving the wheel dozer shipment through the ocean freight to keep the transport charges low. The freight frowarder will be so siginificant in handling this shipment since it will ensure that the wheel dozers are transported within minimum delay and thus it will end up saving both time and money. Since this is importation, the customs claerance should be done. To clear the customs of the imported wheel dozers, the engineering fim should contact the customs authorities and clearing agents since they play a big part during the importation of goods. All the goods imported in Austrilia should go through a process of customs clearance as the cross the Austrilian border. The firm should make sure that the wheel dozers are examined, appraised,assessed, evaluated and consequently permitted to be taken out of the charge of the customs to be used by the engineering firm which is the importer. The whole procedure of customs clearance is complicated and to carry out this process smoothly thus the engineering firm should seek the assistance of accredited customs clearing agents to help out in the entire customs clearance process. Bill of Entry The engineering firm should present a Bill of entry on the receipt of the advise of the arrival of the wheel dozers cosignment. The firm should note the B/E within the import department with the matching endorsement and make it gainst the entry of the wheel dozers in the IGM along with the date. The engineering firm should then present the B/E within the appraising department with the required documets, for instance the invoice, Bill of landing, lince for the importing and catalogue litereture (Taylor 2009). The firm should ensure that the first check process is done whereby the scrutinising evaluators will offer an examination order. Thus the engineering firm should make that the cosigment which consists of the wheel dozers are examined within the docks and the B/E returned to the scrutinising appraiser in order to complete and licence the debit. In such a matter, Customs out of charge will be availed by the departments of accounts soon after the duty is recovered. The cosigment will also undergo a second process whereby the consigment will be cleared. Incase the documents are sufficient to determine the classification, the worth, ITC license, the form is finally completed by the appraiser and then countersigned by the assistant collector. It should then be taken to the license department inorder for the debiting and auting of the licesing to be carried out. the engineering firm should then take the license in order for it to be able to pay the duty in the accounts cash department. After the duty is recovered, the original B/E is then kept department of accounts and then the importer which in this case is the engineering firm gets the duplicate and other copies in order for the firm to be in a position to get the goods(wheel dozers) evaluated in the dock. Within the dock, the wheel dozers will be examined by the examiner and incase the wheel dozers are in good condition, the consigment will behanded out to the company’s representatives and consequently the company will pay out the ort trust charges. The engineering company will make sure that the consigment is assesed by the appraising department who have special staff evaluators within the dock. moreover, it should also be ensured that the assesment and weightment is declared, attested and the dates recorded at the time when the examination of the wheel dozers took place. incase the examination of the wheel dozers takes more that a single day, the result of every day ought to be disclosed. finally, the company can opt for the simplified computer process to avail a faster clearance of the cargo through using the B/E. Scrutinization of the Documents The importing firm should ensure that the documents concerned with the importation of the wheel dozers. After getting the document from the Japanese supplier’s bank, the firm should make sure that its bank has scrutinised these documents in order to verify the exactness according to the terms in the L/C. The firm should ensure that there are no discrepancies and incase they are and are likely to result into violation of any exchange control or any import control laws, the documents should be rejected immediately. incase the descripancies do not affect the nature of the transactions the documents can be accepted on some merits. incase the documents are rejected, an instant noticed should be to the suppliers bank inorder to guard the interest of the importer which is the Austrilian engineering firm. The engineering firm which is the importer should hence scrutinise the documents to make sure that the documents were presented when the credit was in active form and had not expired. The documents should also be checked to see whether the amendments and any unique instructions which were issued have been taken care of and also to ensure that the sum of the bill does not surpss the value of the L/C. The importing firm should also ensure that each and every document that was needed in the L/C is available and that all the documents contain the necessary endorsements. Moreover, the documents should not have any discrepancies which go against any exchange control or any import control laws (Agrawal 2003). It should be ensured that the invoice is fully signed and is equal in amount specified in the draft and the precise quantities are indicated and the invoice is drawn in suitable currency of the origin of the wheel dozers (Japan). The firm should also ensure that the bill of leading is availed in whole set of negotiable copies and is on the board of lading and fully signed if the firm decides to import the buldozers on cash against documents. the importer company which is the engineering firm should take the delivery of the documents from the banker before the end of the custons processes. Through a procedure reffered to as retirement of the documents, the engineering firm should again apply to a dealer or a banker who is authorised who posses the transaction documents. This can be accomplished through tendering the money equal to the worth of the documents and bank costs exchange control duplicate of the import license whereby a special form has been fully completed for the remmitance of the foreign exchange with the Japanese supplying firm. These document will only be released to the engineering firm against payment if there are DP bills and against acceptance if there are DA bills. The payment in any scenerio is accepted only from the bank of the importer. Incase the bank does not have any money, the interest will be charged to the bank of the engineering firm that is importing the wheel dozers (James 2009). Control of the Requirements In order to meet the the control requirements, the engineering firm should identify and make sure that it has complied with all the requirements of all regulatory and advisory organisations before and after the importation. This includes the Australian Custom and other related authorities. The importer should be aware and follow the provisions provided by the importation act and should comply with all these provisions. The firm should provide a notification of the import to the Ausralian legalised body for the imported wheel dozers. The importating firm ought to follow all the specifications outlined in the customs act. The firm should ensure that the whell dozers are well packaged for transit. It should be ensured that the material used in packaging clean and not having any dirt or live insects and also the packaging material should be free of any risk material. Incase during the inspection of the cargo the contaminants are discovered, the cogsinment ought to be retained and then the importing firm should see to it that the contaminats are removed and treated through an appropriate procedure (Grantt 2008). The importing firm(engineering firm) should be aware of any known risk that can affect the packeaged wheel dozers and possible threats consists breakage risk, moisture, overweight in addition to pilferage. Consequently, the engineering firm should ensure that the packaging used on the wheel dozers meets the following: the packaging ought to have a strong and sufficiently sealed containers, the packaging has the weight of the wheel dozers evenly distributed and the packing material should be moisture resistant and also the packing conforms with the product specific risky materials packing requirements where applicable. Incase the firm decides to use wood packaging material or wood to support the wheel dozers the firm should ensure that the wood used is recent. Furthermore, the firm should be aware that the higher the cost of the packaging the higher thecoat of customs charge of the imported wheel dozers and thus the company ought to settle for the packaging that is relavely cheaper in terms of price. However, the value and appropriteness of the packaging should not be overlooked (Jahre 2008). To protect the consigment from the loss that would be incurred incase the wheel dozers are damaged or lost during the trasport, the engineering firm should arrage for sufficient insurance of the cargo. This is because the buyer should be responsible for the insurance of the goods imported. Since the wheel dozers are to be transported using the sea freight, the consignment should be covered by a marine insurance. The marine insurence is recommednable since it can compesate the importing firm for the wheel dozers transported from Japan to Austrialia in case a loss occurs which cannot be recovered back back from the carrier, for instance loss and any damage occuring as a result of the ship getting wrecked or incase of a fire occurence. The company should pay the cost of the insurance for the consigment since there are likely risks during the transit using the sea (Gunasekaran 2007). The firm ought to clear with the customs after the cargo has arrived at the port. The firm should work directly with the supplying company from Japan and the foreign forwarders to get the documents that are required to pre clear the consignment. the firm can also acquire commercial invoice information for the import shipment electronically from the Japanese supplier and this will enable the import shipments to be cleared even before the cargo arrives. The firm should pay all the charges and surrender all the original documents and the cargo cleared the customs in order to have the cargo being released from the port and being authorized to leave (Gunasekaran 2007). Once the consigment arrives at the port safely and the required custom clearance is done, the engineering firm should hire a delivery company in order to deliver the wheel dozers in its warehouse. The firm should ensure that everything is in order when the consigment arrives when the driver arrives to prevent the delivery company from charging any money arising from a wasted journey charges. The company should ensure that all details are availed when requeting the delivery quotes since even a slight detail can result in extra charges and hence amplifying the costs. Through the network of courier agents, the engineering firm should arrange for an instnt delivery of the wheel dozers from the port of arrival to the final destination which is the firm’s site. Therefore, once the wheel dozers arrives at the port and the cargo is cleared, it should be delivered with minmum delay (Theodore 2005). Conclusion Efficient logistics management is vital in any organisation or firm. Therefore, a firm should consider the choice of intermodality and the intermingling of the activities within the supply chain. This is meant to reduce the transportation expenses in addition to lead time. Moreover, it increases the customer service among other benefits. Therefore, the firm should ensure that the wheel dozers are transported from Japan to Australia, cleared of the custom charges, and finally delivered to the firm’s site whereby the wheel dozers will be available for use anytime they are required. Bibiliography Agrawal, D., 2003, Textbook of Logistics and Supply Chain Management, Macmillan, London. Gunasekaran, A., 2007, Logistics Management, International Journal of Logistics Systems and Management  (IJLSM),1742-7967. Jahre, M., 2008, Supply chain integration and performance, a review of the evidence, Volume: 19 Issue: 2. Grantt, B., 2008, On-shelf availability, The case of a UK grocery retailer, Managing Change In Supply Chains: A Process Comparison , Vol, 19/ 3. James, K., 2009, Logistics And Supply Chain Management Applications Within A Global Context, Journal of Business Logistics, Vol. 30, No. 2. Timothy, D., 2009, Supply Chain Process Integration: A Theoretical Framework, Journal of Business Logistics, Vol. 30, No. 2. Taylor, M., 2009, Supply Chain Management, Maritime Logistics In The Global Supply Chain, Vol. 6, No 4. Srikanth, S., 2006, Effective Performance Management, Journal of Business Logistics, Vol. 5, No 3. Theodore, P., 2005, Role Of Followers In Supply Chains, Airforce logistics management, Vol. 1, No 23. Lambert, D., 2003, Strategic Logistics Management, McGraw-Hill, New York. Read More