You work for a company in Manchester, NH that manufactures a unique running shoe that has grown in popularity beyond the local region and is now being demanded across the United States. Your current distribution centers are located in Albany, NY, Phoenix, AZ, and Jacksonville, FL. Your company has also begun to receive inquiries from retailers in the European Union that are interested in selling your shoes. To begin selling overseas, your company has partnered with a company that will manage a distribution center in Munich, Germany.
While looking into your current distribution plans, you find that you have no comprehensive transportation plan. You see that transportation in your company is typically an afterthought; this will not do if you are going to begin selling across the United States and Europe, as planned.
For this assessment, you will develop a comprehensive strategy for planning and executing a global transportation network. This strategy, which will be presented to the COO of your company, will outline your company’s transportation requirements and how you are planning to meet them. Be sure to refer to concepts learned in this course and include additional peer-reviewed research to support your conclusions.
Modes of Transportation
A. Choose various modes of transportation to move your product to your distribution centers in Albany, NY, Phoenix, AZ, and Jacksonville, FL. Which mode(s) of transportation do you propose to transport large quantities of shoes to each location? Be sure to provide logical explanations for your choice of transportation to each distribution center.
B. Summarize how you would construct an intermodal network to reach Munich, Germany on a consistent basis from Manchester, NH. Be sure to describe and justify your choice of ports, shipping container, and mode. Because cost is the biggest concern for the company, expedited shipments are not a priority currently, though they might be in the future.
C. Considering your modal choices to transport goods to the continental United States and Europe, research existing carriers that you could use for each route and choose the most preferable providers. Be sure to consider third-party logistics providers and freight forwarders, if applicable. Using a weighted decision matrix may help you decide which vendors to utilize. Provide a brief overview of the companies that you chose, why these were your preferred vendors, and support your answer with appropriate sources.
D. Considering your modal choices above, compare and contrast the environmental impacts of each. Considering consumers’ value judgments, what weight should be given to these choices? It may be helpful to use a decision matrix when deciding how to weight these choices. Explain how these factors (environmental impact and consumers’ value judgments) interact with one another to affect your ultimate strategic transportation plan.
II. Impact on Economy
A. Considering the transportation infrastructure in the United States, what long-term sustainability considerations will the transportation plan affect? How might such considerations affect the plan? For example, consider the infrastructure improvements that will be necessary in the upcoming decade to sustain current levels of operation. Support your answers with real-world examples or evidence.
B. How might specific current and potential geopolitical factors affect your transportation to the European Union? How can you plan to allay future disruptions? Support your answers with citations from current news sources.
C. Explain how issues may arise surrounding transportation to and from the immediate area around the central production plant in Manchester, NH as demand for the product increases. Consider factors such as noise, pollution, jobs, and environmental concerns. Be sure to include support for your answers.
D. From a managerial standpoint, compare the advantages and disadvantages of partnering with firms headquartered in the United States versus firms headquartered outside of the United States. Which decision would you ultimately make? Explain your rationale.
III. Past and Present Regulation
A. Analyze the current customs and clearance process required to move cargo from the United States into the European Union. Be sure to include the required forms and regulatory agencies that are involved, and describe each step of the process. How has this process developed over time? How might this process change in the future, based on what is known of it today? Defend your rationale.
B. Summarize the key acts and statutes that act as the basis for transportation regulation in the United States. How might these affect your transportation plan? Be sure to provide citations of these acts and statutes from primary literature.
C. Based on the past trends of transportation regulation, do you predict that future transportation regulation will become stricter or more lenient? Why? How will these changes affect your transportation plan? Support your answers with primary sources.
D. Summarize the terms and conditions that you would choose for your own international trade route. For example, consider the CISG, Incoterms, and other standardized trade agreements. Include reasoning for your choice of these terms and conditions in the context of global trade.