Export Planning Learning objectives (learning tasks)Ch. 8 At the end of the chapter you are able to: 1.develop the logistics structure and distribution set up; 2.determine the delivery – and payment terms and export documents requirements; 3.create the necessary organisation structure set up; 4.identify cultural issues and resource requirements;
Export Planning Supply Chain / Logistics infrastructure set up Source: Supply Chain Council The development of a fast, flexible and cost efficient supply chain network requires the set-up of : 1.a physical supply chain infrastructure (to create a pipeline) 2.an IT-systems network to have a smooth flow within the pipeline
Export Planning Delivery terms EXW (Ex Works) Seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller. FCA (Free Carrier) Seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge. FAS (Free Alongside Ship) Seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. FOB (Free On Board) Seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. Sourcce: www. Exporters.com.sg
Export Planning Cultural model by Hofstede Source: Hofstede Cultural Dimensions of the Hofstede - model Power Distance Index (PDI) Individualism (IDV) Masculinity (MAS) Uncertainty Avoidance Index (UAI) Long-Term Orientation (LTO)
Export Planning Chapter review questions(10 min.) 1.What are the three steps of the export planning process? Motivate your answer. 2.Which elements are part of the logistics and organisation – step? Explain your answer. 3.Explain the purpose and use of the SCOR – model. 4.Create a SCOR overview for Danone entering the Russian market. Use the overview as presented in Figure 75 of the text. Base your logistics infrastructure on a factory in France (make to inventory), planning based on forecasting for finished goods on stock, distribution into Russia based upon one distributor (Danone itself) and several retail chains (supermarket chains). Returns will be handled in Russia and will not be shipped back to France. 5.What does the term INCOTERMS mean? How can you apply them?