Transportacion Of Italian Product To Canada

Transportation Systems

EXECUTIVE SUMMARY

Table of Contents
EXECUTIVE SUMMARY 2
Introduction 5
Shipping Alternatives 6
Italian supplier 6
Laval supplier 6
Italian with Load Broker 7
Laval with Load Broker 7
Annual Shipping cost 8
Best Option 8
Second best option 8
SUMMARY AND CONCLUSION 9
Summary 9
Conclusion 9
Appendices 10
Appendix 1 10
Appendix 2 10Appendix 3 10


Introduction
Tandy Systems (TS) has being in business since 1999, bringing high-end products to Canadian costumers, currently with four locations throughout Canada located in Fredericton, Toronto, Regina and Abbotsford. TS has decided to launch a new product, however there has been some uncertainty in selecting the suppliers that will be used. It’s required to for TS to distributeone container a week to each distribution center (DC) to meet demand. I have been selected to create a logistics plan, which will provide TS with a better understanding of what are the best options available for this product.
Canadian or Italian suppliers are the two sources found for the massager chairs. The arrangement for freight could be done by either TS or a Canadian load broker, which hasapproach us with freight rates that could be considerable when making a final decision regarding freight transportation. Due the demand of the product is fixed for the next year, the long term cost will be taking into consideration. Even though cost is the main focus on most business, we will also have to consider other factors that can come up in the future. By analyzing this factors we will beable to distinguish between the advantages and disadvantages of the possible suppliers. TS has provided me with a full breakdown of the transportations plans as well as the cost of production. With the information provided by TS we will be able to provide a detail analysis with the best options for TS to make a decision between the suppliers in order to launch the new line of Relief product.Shipping Alternatives
After analyzing the information provided by TS, I have made some conclusion regarding the shipping options. The Italian supplier offers a cheaper rate than the local supplier from Laval, yet the shipping cost are higher due the distance that the product needs to travel in order to arrive to their destination. The Italian product will be shipped in 40’ containers with a capacityof 384 boxes, each containing one unit. The Laval product will be loaded on pallets and will need to be forklifted into the 53’ container. A complete breakdown of the shipping measures and requirements is provided in (appendix 2).
According to the information given I have calculate that the 40’ container holds 384 units, which is the required amount needed in order to meet the supply demanded.Even though the 53’ trailer has a greater capacity, it cannot hold more than the required amount due the space restrictions in the distribution centers, which makes the evaluation between both suppliers easier, therefore we can compare cost per unit.If TS decided to use their own resources, they will need to use their own team, which will be in charge of arranging the freight costs and procedures.The other option will be to use a load broker, which means that TC wont need to worry about anything related to freight, because the broker will be the person in charged for transporting the product.

Italian supplier
Shipping arrangement will be provided by TS, from the Italian manufactory and arriving to St John via 40’ containers then transported to the corresponding DC’s via rail, With anaverage cost per unit of $15.52 and an average transit time of 29 days, this option requires substantial work from TS in order to prepare and coordinate the paper work needed in order to satisfy the Canadian customs policies.

Laval supplier
Shipping arrangements will be provided by TS from Laval with the help of Acme Trucking, from Laval manufacture transported in 53’ trailer to the...