Supply Chain Case Study Discussion
Requirements
- All responses in the discussion board must be written in your own words demonstrating your understanding and analysis of the topics being discussed.
- Merely agreeing with another student’s answer is not enough, explain WHY you agree or disagree.
- In all your responses assume that the reader has no idea what the topic is about.
- Each discussion is worth 30 points.
Due Dates
- Initial Post: Each student must answer the discussion questions in DETAIL by Thursday night.
- Response Post: Later in the unit, re-enter the thread and respond to at LEAST 2 answers composed by your classmates. These peer responses should be thought provoking, stimulating further discussion of the topics with perceptions, ideas, and supported facts.
Discussion Cases
Case 11.1 Vibrant Video PG. 458
Complete question #1 & #6. What responsibilities, controls, and costs does V2 bear under each of the FOB terms offered.
For the speakers, FOB Destination, Freight Collect & Allowed translates into ownership by V2 occurs at time of delivery. The speakers are owned by the Mexican manufacturer during transit, but the nice part is V2 can pick their carrier of choice and the buyer deducts freight cost from goods payment.
For the receviers, FOB origin with freight collect means V2 is responsible for the equipment at the time of shipment and through all transit. V2 picks the carrier, pays the freight cost and would be responsible for damages and take ownership of freight claims. The upside is freight isn’t marked up and any pre-arranged discounts that V2 has with the carrier wouldn’t be subjected to any mark-up, like pre-paid & add terms.
Question 6 – What other supply chain issues and costs must SSE (I assume they mean V2) take into consideration when making these transportation decisions?
Vibrant Video would need to look at the reliability of the carrier with regards to on-time deliveries without damage. LTL carriers have the highest rate of on-time delivery. LTL Carriers also offer superior product safety over rail and water in that the shipments aren’t subjected to increased vibration and jarring.
Cost is lower with rail & water, but LTL carriers offer much faster service. You get what you pay for when it comes to speed of service.
Vibrant Video will also want to look at warehouse capacity because the speaker and receiver manufacturers offer different delivery schedules, at different pricing, so you have to have room to store, if needed.
Vibrant Video will want to establish relationships with several freight sales/company representatives. This will ensure V2 a single point of contact when issues arise and the ability to negotiate the best rates possible and the extra benefit of a free lunch when the trucking rep makes sales calls to your company!