1. Inbound Logistics
In order to ensure successful transportation from the overseas suppliers to the port of Algeciras in southern Spain, Sol Sport logistics manager should elaborate the following issues: supply chain planning, shipment planning, transportation systems planning, vehicle routing and scheduling, and warehousing (see Figure 1).
Figure 1. Logistics Modeling
The logistical issues for a supply chain of sports clothing and equipment involves many choices. These products are relatively expensive and require quick shipment at a limited cost. Major manufacturers are located in China (clothing), Brazil (swimwear), and South Africa (sports equipment). Typically, transportation is done by sea, using standardized containers, since demand is large and the cost of this mode of transportation is low.
For the inland transportation, the size of the container does not matter as much as in the sea shipment (Van Asperen, 2009). For marine shipment, it is important to take into account that 20 ft. containers occupy one TEU location in the stack, 40 ft. containers occupy two locations. Containers of different sizes cannot be stacked on top of each other. Van Asperen (2009) also admits that whereas the handling and inland transport costs per TEU decrease, the holding and storage costs increase.
When it comes to Shipment Planning, it is important to identify the ports of onloading and offloading operations, the routes and schedules of shipments through the supply chain, including freight consolidation and transportation mode selection.
The very first issue to consider is the Incoterms entrenched in the contract with supplier because these rules define the moment when all the costs and risks associated with the transportation and delivery of products are passed to Sol Sport. As a rule, exporters prefer using EXW, since it implies the least burden for them. For Sol Sport, it means that it should pay all transportation costs and also bear the risks for shipment and delivery of the products to Algeciras and then to outlets across Spain. The suppliers do not load the goods on collecting vehicles and do not clear them for export. Some exporters, though, are able to assume some risks and offer FOB. The supplier must load the products on board of the vessel nominated by the buyer and bear the costs of customs clearance for export.
Consequently, with consideration to what terms the supplier and Sol Sport will agree, it depends whether logistics manager should or not concern about transportation of goods from the factory to the port, the products storage, customs clearance for export and onloading on the board of the vessel. Once products reach their destination port at Algeciras, they will be offloaded and stored in the track of the terminal. Therefore, another issue for logistics manager at Sol Sport to consider is temporary storage of products before they are ready for further inland transportation to the retail outlets. Temporary storage of the cargo is recommended in the stack, since if any disruptions in the onward transport happen, they would not have any negative impact …