1. A star basketball player in Atlanta causes a rash of sales of red sports shoes. According to the shoe manufacturerâs point of sales information, the shoes are selling off the shelves and online as well. A marketing executive in the U.S. Southeast believes the company has a month or two of vibrant sales of these red sports shoes. The shoe manufacturers U.S. volumes are prescheduled at a plant in South China (Guangzhou) for delivery throughout the U.S., and a number of containers are already on the sea destined for Los Angeles with some moving all water to New York, Norfolk and Savannah. Some containers have already arrived with red shoes mixed with other types and colors.
You have some decisions to make.
a) What are Incoterms and what would their role be here? Given cost and service needs what INCOTERM would you use? Justify your answer.
b) What would be some of the transportation risks involved and what would you probably need to do to manage and mitigate the supply chain risks in this case?
c) What are some of the normal transportation documents you would need to have for an import move? Explain how CTPAT and 10+2 impact inbound shipments.
d) How would you base your decisions on carrier selection? Remember that you will need to get product to Atlanta as quickly as possible.
e) What are some of the intermodal questions you need to address?
f) Should you move some product via air? Why or why not?
g) What are the supply chain considerations to keep in mind?
h) How does âlanded costâ fit into your calculations? Remember that you have to get shoes to market quickly but also incorporate all of your costs to the retail store and Atlanta area distribution center.
i) How does the nationâs infrastructure affect your plans? What can you do to mitigate these issues?