Certification Programme for Supply Chain Management – CP-SCM
Certification Programme for Supply Chain Management
CP-SCM
Module Transport and Delivery
Scenario You have just been notified by UNHCR’s HQ Supply Section that a
shipment of medical equipment palletised and packed in a 20-foot container
has been sent from Hamburg by UNHCR’s German supplier, Meditech, and
will be arriving at the Port of Omegacity in Kappaland in 4 weeks from
now. The supplies are to be further transported to the Sigmacity warehouse
and are expected to be delivered there in 6 weeks from now at the latest.
Meditech and UNHCR have agreed ‘CFR Omegacity Incoterms 2010’ as
the delivery conditions.
The Kappaland country office has established a frame agreement with a
local freight forwarder, Kappatrans, and has been working with this
contractor for 3 months. Kappatrans offers a range of transport-related
logistics services such as inland freight consolidation and land transport
covering the entire country. They operate a fleet of box-body trucks with
various capacities and have access to flatbed trailers fitted with container
twist locks. As they are not licensed by the Kappaland government to
conduct customs clearance formalities, UNHCR has established a frame
agreement with a local clearing agent, Swiftcustoms.
Although Kappatrans has an established reputation based on 50 years of
operational experience and maintains good contacts with logistics service
providers (such as carriers, temporary port storage services and stevedoring
companies) as well as with local and national authorities (including
ministries and port authorities), their performance has been inconsistent. In
particular, several timeliness issues have been identified, mainly as a result
of poor communication with UNHCR. Kappatrans’ performance has,
however, not been formally evaluated.
You have contacted the Sigmacity warehouse and enquired about the site
conditions and constraints. The reply of the warehouse manager, Mary
Smith, is as follows:
Certification Programme for Supply Chain Management – CP-SCM
Dear Colleague,
Thanks for the information regarding the containerised shipment of
medical equipment to be delivered by truck to the Sigmacity warehouse.
Please be informed that our forklift has been sent for repair and will be
unavailable on the date on which the goods are expected to be delivered
to the warehouse. We will rent a forklift for one day to unload the pallets
but we kindly request to be informed about the exact date and time of
delivery to the Sigmacity warehouse at least 24 hours in advance so we
can make the necessary rental arrangements.
Best regards,
Mary Smith
Warehouse manager
Sigmacity
UNHCR has not yet obtained the tax and duty exemptions for this shipment.
The key steps to be followed in order to clear the goods through customs in
Kappaland are as follows:
Key steps for the customs clearance
of UNHCR shipments in Kappaland
1. Obtain an exemption certificate from the Ministry of Foreign
Affairs for the incoming shipment as soon as the original shipping
documentation is available.
2. If required, obtain any additional import permission through the
following authorities:
- National Drug Authority: certificate of analysis for the import
of medicines;
- Ministry of Health: medical device import permit for the
import of medical equipment;
- Road Transport Authority: permit to import vehicles.
3. Provide the original shipping documentation (i.e. transport
document, invoice/gift certificate, packing list, certificate of
origin), the exemption certificate and any additional import
permit (if required) to the service provider in charge of clearing
the goods through customs.
The shipping documentation currently available at the Kappaland Country
Office includes the following attached copies:
- Copy of Invoice;
- Copy of Bill of Lading.
(please see attachment 1 and 2 of this assignment)
Certification Programme for Supply Chain Management – CP-SCM
Task 1 Please answer the following questions:
1. What are the areas of responsibility of the Kappaland Country
Office? Your answer needs to consider all the activities to be
arranged/paid by the Country Office.
2. Is the documentation currently available at the Country Office
complete and accurate? If not, what document(s) is/are
missing/inaccurate, and how will you go about resolving these
issues?
3. Please create a flow chart of the supply chain process of the current
case study, including all internal functions/departments and external
parties in the supply chain. Please also indicate what
information/documentation will be exchanged between parties.
(You may use a separate PowerPoint file if you would like to).
4. What are the steps involved in the customs clearance process?
Based on your knowledge/experience, what will you do to ensure a
swift and efficient clearance of the goods through customs?
5. What will you do to organise smooth onward inland transport from
the port facilities to the Sigmacity warehouse? (Describe in your
own word based on your knowledge/experience)
6. What potential risks can you identify for this operation and what
will you do to minimise these risks? (Give some examples based on
your knowledge/experience)
7. How will you evaluate the performance of Kappatrans? Your
answer needs to consider a set of evaluation criteria and the
associated Key Performance Indicators (KPIs).
8. What actions will you take to ensure that the performance of
Kappatrans meets UNHCR’s requirements in the future?
