Supply Chain Management

Role of Network Design in the supply chain: A brief description

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Though there is inherent uncertainty about the future, a supply chain network risk analysis can be conducted; by using information available, the future business environment can be characterized. Network design decisions have a significant impact on performance of the supply chain. Though designing a supply-chain network can cut costs within a company, it is important to note the supply chain is not static but rather a continually improving model and adapt in response. The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory and transportation costs incurred by the supply chain to gratify customer demand. Good network design decisions increase supply chain profits, whereas poor network design hurts profit.

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Supply Chain Management

About procurement: Freight Prepaid related incoterm based on ICC amend. 2020.

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Abstract “Freight Collect” & “Freight Prepaid” are two shipping terms, which show whether a consignee has the primary liability to the carrier for the shipping charges in a procurement process. EXW, FCA,  FOB, FAS, etc Incoterm used for “Freight Collect” shipment. Now, we would like to discuss Incoterm which can be used for different  “Freight Prepaid” shipments based on Incoterm of Sept 2019 published by ICC, also called 2020 amendment of incoterm. Keywords: International Procurement, Freight Prepaid, Freight collect, Incoterm, ICC, Amendment 2020. Article Introduction Transportation is one of the Drivers of…

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Supply Chain Management

A discussion about International export and outbound logistics of goods

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In the export trade, goods and services are sold and shipped out of the jurisdiction of the country and customs authorities. While export to developed countries, Bangladesh gets some tariff facilities. It is nothing but helping the developing countries in export trade and industrialization, on the other hand, they regulate some products to enter their country at a lower price. Currently, Bangladesh is enjoying tariff-free market access for 90 per cent to 100 per cent products in all the developed countries except the United States. Tariff-free and low-tariff market access facilities in the developed and some developing countries immensely benefited Bangladesh. Bangladesh High Commissioner to Ottawa wrote that quality of Bangladesh’s apparel products as well as efficient supply-chain mechanism has largely contributed to doubling bilateral trade in a decade.

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Supply Chain Management

Cycle View of a Supply Chain

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The processes in a Supply Chain are usually divided into a series of cycles, each performed in the interface between two interrelated successive stages of a Supply Chain. Sub-processes in each Supply Chain Process Cycle I.e., each cycle comprises six sub-processes, supplier stage markets a product, buyer stage places order, supplier stage receives order, supplier stage supplies order, buyer stage receives supply, buyer returns reverse flows to a supplier or the third party.

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Supply Chain Management

Understanding the “Reverse Logistics” concept and implications in Supply Chain Management

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Returns avoidance, gate keeping, disposal and other supply chain issues are related with reverse logistics. The product may need to travel in reverse through the entire supply chain network to retain use of any service from the defective goods. There are closed loop supply chain networks that include returns processing and manufacturer has the intention to capture additional value and integrate all supply chain activities. Usually, asset based three 3PLs work as third party who are specialized in waste management and related activities. Reuse of manufactured and sold goods After sales service and returns management are sometimes related to the logistic companies. 

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Supply Chain Management

A discussion about the Matarbari deep sea port: A supply chain management perspective

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To ensure load unload of deep draft vessels the Matarbari port is essential for Bangladesh and adjacent countries and areas. The Matarbari deep sea port has a 16m depth that will help 16m draft vessels to unload their cargo at the terminal. At deep sea, currently mother vessels unload the cargo at feeder vessel and they carry the cargo to the Chittagong port. The present seaports (Chattogram sea port and Mongla sea port) of the country do not have the capacity to handle huge containers and vessels and the building of a deep sea port is the only solution. Chittagong port can’t load unload from more than 9.5 meter vessels.

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Supply Chain Management

How supply chain planning works: A general discussion

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The uncertain nature of the customer demand need to take into consideration by generating the production plan and in particular the production quantities, to meet uncertain customer demand in the best way possible and maximize the profit, by minimizing production costs. Aggregate planning is a process by which a company decides about their ideal levels of capacity, production, inventory, stock-out situations, pricing, subcontracting, etc. Production planning, is the correct placement of production orders concerning place, or region, of production, and time scheduling and sequencing of production orders. The parameters are usually production rate, workforce, overtime, machine capacity level, subcontracting, backlog, and inventory on hand. The amount of overtime production planned is a parameter for aggregate production planning. Production planning for fashion apparel products has to cope with demand uncertainties. Collaborative forecasts created by various enterprises are an important input in aggregate supply chain planning. However, at the time of generating the production plan, the predicted customer demands are largely uncertain.

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