International logistics The Company Terrajal S.A. de C.V

Midterm exam

International logistics

Name_________________________________

Case Analysis 

The Company Terrajal S.A. de C.V. Dedicated to the design and commercialization of ceramic tiles decorated with Mexican motifs, is negotiating an export project to ship to Germany and its distribution to Holland and Denmark, it has 12 suppliers of micro-workshops (manufacturers) in the state of Jalisco and a consolidation warehouse for packing and loading  that is in Tonalá Jalisco.

The first project will consist of the shipment of 16, 20-ft (TEUS) containers in June and July, the company Terrajal S.A. de C.V. have to integrate an international logistics strategy.

AND: THEY HAVE THE FOLLOING QUESTIONS

1. In this particular case, in accordance with the definition of supply chain management from what point (desde que proceso o organización involucrada) of our supply chain we should include our planning, coordination and implement our logistics strategy design, for the entire logistics process to have the best performance.

Terrajal S.A. de C.V. should start planning logistics from the production stage in its 12 small workshops in Jalisco. This means organizing production schedules, making sure there are enough materials and planning when and how the products will be made. Then, the focus should be on the warehouse in Tonalá where the tiles are checked for quality, packed, and loaded into containers. The logistics plan should also include transportation, making sure the products are moved by truck to the departure port Manzanillo, choosing the best shipping routes, and handling customs paperwork. Finally, the plan should cover distribution in Europe, picking the right port (Rotterdam or Hamburg), handling customs, and delivering the products to distributors in Germany, Holland, and Denmark.

2. How would you explain the difference between the concepts of international supply chain management and international logistics?

Supply Chain Management: Covers the entire process from production to delivery, including procurement, manufacturing, storage, and distribution.

International Logistics: Focuses specifically on transportation, storage, and handling of goods across international borders.

3. What objectives should the integration of the supply chain have for this project?

• Deliver 16 containers on time in June and July.
• Reduce transportation and customs costs.
• Prevent delays or damage to shipments.
• Coordinate suppliers, warehouse, transport providers, and distributors.
• Ensure product quality through proper packaging and handling.

4. Road (trucking) transport will be used in this project?,  which part of the supply chain will use it.

Yes, road transport will be used in the following stages:

• From workshops to the warehouse in Tonalá.
• From the warehouse to the departure port in Mexico.
• From the arrival port in Europe to distributors.

5. What are its advantages and disadvantages of road transport

Advantages:

• Flexible for pick-up and delivery.
• Faster for short distances.
• Ideal for direct deliveries.

Disadvantages:

• Can be more expensive for long distances.
• Affected by traffic and road conditions.
• Lower capacity than rail or maritime transport.

6. Which sea ports would you use for loading and which port of discharge due to de origin and destination of the exports.

Departure port in Mexico: Manzanillo

Arrival port in Europe: Rotterdam (Netherlands) or Hamburg (Germany), as they connect well with Holland and Denmark.

7. Mention a sea shipping company that has this route

Maersk Line is a reliable option for this route.

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