From China to Australia: an Online Store Perspective
Introduction
In recent years the importance of logistics activities has increased exponentially. Macro environmental factors such as Globalisation and Technologies have contribute to higher the level of customer expectation and at the same time they are putting an ever-increasing pressure to managers in order to lower costs and improve quality and utility to their products so as to achieve a competitive advantage in the market place.
Furthermore, thanks to the fall of boundaries in the global market, companies are able to outsource their manufacturing activities in other Countries, such as China, where the labour and commodities costs are relatively inexpensive. Nevertheless the costs saving in production, companies are facing the challenges to move their product from the Country of origin to the Country of consumption. This task required managers to strategically planning and coordinating with other functional areas of the firm all the logistics activities involved and trade-off related.
The following chapters’ focus on the supplier selection process, international transportation and import clearance (Appendix 1). Furthermore, they outline how the logistics activities in these processes may contribute an online store to lower costs and add value to time and place utility.
Chinese sourcing operations supplier selection, evaluation and procurement.
Murphy & Wood (2011) define procurement as the commodities, semi-finished or finished goods that a company buys from external sources in supporting the firm’s operations. Moreover, Routroy (2008) argues that given the fierce competition created by the fall of boundaries in the global market, which has contributed to increase costumer expectation, companies are force to outsource some of their operations in order to gain a competitive advantage. Consequently, the supplier selection process is becoming a critical issue and therefore, organisations are called not only to outsource but to do it with a strategic
In recent years the importance of logistics activities has increased exponentially. Macro environmental factors such as Globalisation and Technologies have contribute to higher the level of customer expectation and at the same time they are putting an ever-increasing pressure to managers in order to lower costs and improve quality and utility to their products so as to achieve a competitive advantage in the market place.
Furthermore, thanks to the fall of boundaries in the global market, companies are able to outsource their manufacturing activities in other Countries, such as China, where the labour and commodities costs are relatively inexpensive. Nevertheless the costs saving in production, companies are facing the challenges to move their product from the Country of origin to the Country of consumption. This task required managers to strategically planning and coordinating with other functional areas of the firm all the logistics activities involved and trade-off related.
The following chapters’ focus on the supplier selection process, international transportation and import clearance (Appendix 1). Furthermore, they outline how the logistics activities in these processes may contribute an online store to lower costs and add value to time and place utility.
Chinese sourcing operations supplier selection, evaluation and procurement.
Murphy & Wood (2011) define procurement as the commodities, semi-finished or finished goods that a company buys from external sources in supporting the firm’s operations. Moreover, Routroy (2008) argues that given the fierce competition created by the fall of boundaries in the global market, which has contributed to increase costumer expectation, companies are force to outsource some of their operations in order to gain a competitive advantage. Consequently, the supplier selection process is becoming a critical issue and therefore, organisations are called not only to outsource but to do it with a strategic
References: Australian Customs and Border Protection Service, 2011, customs procedures for importing and exporting, http://www.customs.gov.au/site/page4226.asp Murphy, Jr. PR & Donald,FW, 2011, Contemporary Logistics,10th edition, Pearson Education, New Jersey. Routroy, S. (2008) "Decision framework for supplier evaluation and selection in supply chain", The ICFAI University Journal of Supply Chain Management, Vol.5 No.3 pp19-32 (online Emerald) Sharon M Theodore P. Stank, Thomas J. Goldsby, (2000) "A framework for transportation decision making in an integrated supply chain", Supply Chain Management: An International Journal, Vol. 5 Iss: 2, pp.71 – 78 CQUniversity Course Resource Online (MGMT 19103).