Supply Chain Management Assessment for Compretudo
Security is an essential element for all businesses in the international supply chain. Failure by a business to take security seriously at the international supply chain leaves them vulnerable to devastating attacks. Operating in the international market provides businesses with access to vital merchandises and amenities that are essential to the running of a profitable occupational. The report will begin with exploring the benefits accrued by Compretudo from sourcing goods from the Qatar and Oman and strategies for mitigating risks, how Compretudo should organize and manage its supply chain administration roles and actions in undertaking of goods. Finally, the report will address the probable risks to the safety of Compretudo’s end to end supply chain. The drive of this report is to develop an appraisal of the supply chain security issues for a Brazilian Supermarket chain Compretudo that is sourcing goods from Qatar and Oman.
Benefits of Outsourcing from Oman and Qatar
Compretudo is the decision to outsource its goods from Oman and Qatar comes with a wide range of benefits. Through outsourcing from Oman and Qatar, Compretudo stands a chance to locate scarce resources not available in Brazil and thereby, increase the manufacturing capacity and technical capabilities of its business. The economies of scale that comes with accessing the rare resources would translate to a competitive advantage for Compretudo (Alexandrova, 2009). Additionally, outsourcing of goods and services, the company will be able to focus on its core competencies and develop a more efficient internal capacity which will result in low prices for goods and services even with the additional transport cost (Tayauova, 2012). The Compretudo in Brazil is also likely to benefit from low-cost manufacturing in Qatar and Oman and offer quality goods to customers at a reduced cost. Compretudo also stands to benefit from the efficient supply chain management systems in Qatar and Oman. The efficient supply chain management comes with significantly reduced time-to-the-market for goods sourced from Oman and Qatar to Brazil (Somjai, 2017). Subsequently, Compretudo is able to meet competition prudently and efficiently in the Brazilian market.
The outsourcing of goods from Qatar and Oman and then consolidating them in Qatar for shipment to Brazil creates a complex supply chain for Compretudo with a wide range of security risks. The outsourcing of the goods from Oman and Qatar and then shipping them to Brazil is subject to natural disasters including earthquakes and hurricanes which can cause significant disruptions to the entire supply chain (Urciuoli, 2010). It is essential for Compretudo to develop a prudent risk organization strategy that can help the business to identify, analyze and implement effective risk management technique to curb potential disruptions across the supply chain involving Qatar, Oman, and Brazil (Colicchia & Strozzi, 2012). Uncertainties in the supply chain affect the logistical and strategic operational levels of the business. Situations of political instability in Qatar and Oman can impact the business negatively thus derailing the Compretudo business objectives.
Similarly, compliance with local laws in the Oman and Qatar relating to export and import of goods has vital importance to the effectiveness of the supply chain. Failure to adequately comply with the local laws in Oman and Qatar can affect the lead times negatively thus impacting negatively on the time-to-the-market for goods sourced from Oman and Qatar (Speier et al., 2011). Ensuring compliance with the local laws will play a critical role in decreasing the lead times and minimizing unnecessary uncertainties in the supply chain.
Conducting qualitative and quantitative risk assessment can play a perilous role in the mitigating the majority of the hazards experienced in the supply chain (Thomas, 2010). The assessment can help establish the components both quantitative and qualitative that may impact negatively on the supply chain.
How Fast and Lose would Co-ordinate and Manage the various Supply Chain Management Roles
Hiring Fast and Lose to co-ordinate various supply chain management roles can help Compretudo to enjoy a tailored menu of supply chain solutions. Fast and Lose will play a critical role in advising Compretudo on export costs including essential freight costs, port expenses, original documentation costs, insurance and merchandise costs (Popovych, Shyriaieva & Selivanova, 2016). Additionally, the Fast and Lose will help the Compretudo to establish the most suitable course for consignment and taking justification of the nature of goods under transport, cost, transport time and care. Fast and Lose also can play a critical role in making a reservation and contracting necessary cargo space on the ship, train, aircraft, train or truck when the goods are being moved from Qatar and Oman and later to Qatar for consolidation before shipment to Qatar (Perlman, Raz & Moshka, 2009). The Fast and Lose will act as an intermediary in customs in negotiations around the Qatar, Oman and Brazil borders to ensure efficiency in movement of the goods. Compretudo also stands to benefit from Fast and Loose with advice on the legislation affecting trade, political and social situation in the borders between Oman, Qatar, and Brazil (Gil-Saura, Berenguer-Contri & Ruiz-Molina, 2018). Since Fast and Lose has significant knowledge regarding the local business environment can play an important role in handling customs agents in Oman and Qatar to ensure that goods and documents used in the shipment of goods as per the customs regulations.
Fast and Lose and Rápido e Apertado working together will play a critical role in performing the shipping operation on behalf of the Compretudo. Fast And Lose and Rápido e Apertado relation will play a critical role in ensuring that the freight shipping is under control and goods are safe while in transit. Compretudo will be eased the burden of ensuring the security of the goods and put more emphasis on ensuring the efficiency of its business (Gil-Saura, Berenguer-Contri & Ruiz-Molina, 2018). Lead times are one of the significant challenges that affect businesses negatively when outsourcing goods and services from the international market. However, with the help of Fast and Lose, Compretudo can be saved from the burden of determining the size and type of container needed for packaging, a number of packages, and booking for shipment and special consideration for the port destination in Brazil (Perlman, Raz & Moshka, 2009). Additionally, the Fast and Lose will send the documents for collection to Compretudo to help streamline the efficiency in access to goods thus increasing the competiveness of the business.
Potential Supply Chain Security Risks
As aforementioned, operating in a supply chain that involves several countries presents significant security challenges to the transport of goods between Qatar and Oman borders. Losses, thefts, tampering, and replacement of goods are the major security threats that impact consolidation and shipment of goods from Oman and Qatar to Brazil (Ekwall, 2012). Losses and thefts account for significant losses for businesses. Tempering and unauthorized replacement of products can lead to dangerous and unsatisfactory goods for customers. Goods are at the risk of tampering and theft when they are being consolidated in Qatar for shipment to Brazil. Involvement of third parties in the supply of goods from Qatar and Oman and later to Qatar for consolidation and shipment to Brazil presents the challenge of cargo diversion, hijacking, and piracy which are serious security threats.
Smuggling of dangerous goods such as explosive weapons, contraband goods and stowaways is the serious security threat that faces Compretudo in its outsourcing of goods from Qatar and Oman. A wide range of transport modes including planes, trucks, and trains are targets for transport of smuggled goods. There is a wide range of third parties that are involved in the transport of goods before they are consolidated in Qatar for shipment to Brazil. The various third parties involved in the process of transporting the goods increase the risk of smuggled and dangerous goods being shipped to Brazil (Urciuoli & Ekwall, 2012). The criminal gangs may go a long way in having one of their own being employed in the supply chain and thus creating a backdoor for smuggled goods to gain access to the shipment.
Terrorism is the other risk that poses a significant security threat to Compretudo shipments from Qatar and Oman. Qatar and Oman are easy targets for Islamic terrorism, and it is possible for the terrorists to attack the shipment. The terrorists can also hijack the shipment and use it transport explosives and other dangerous weapons to the port of destination (Manuj & Mentzer, 2008). The terrorists can go further to stage armed attacks and bombing in Brazil.
Observing the international standards for ensuring the safety of the international supply chain is essential towards overcoming the security risks experienced in the Oman, Qatar and Brazil supply chains (Rao & Goldsby, 2009). The various players involved in the supply chain including freight attendants, freight forwarders, truck, and train transporters and a wide range of others have a significant role to play in safeguarding goods at the international supply chain.
Briefly, the international supply chain provides a complex environment to ensure security. The vulnerability of the shipment of goods between Qatar, Oman, and Brazil is increased by the full range of parties involved in the transport of goods before they are consolidated for shipment to Brazil. The multiple parties involved makes smuggling of dangerous and contraband goods possible. Additionally, it increases the risk of theft, losses, tampering, and replacement of goods. Terrorism is another major challenge that faces the movement of goods along the supply chain. The Fast and Lose freight forwarders have an essential role in ensuring safety and compliance of Compretudo’s shipment with the customs regulations in the three countries.
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