An analysis of cross-functional teams in procurement and acquisitions Term Paper

An analysis of cross-functional teams in procurement and acquisitions - Term Paper Example This indicates that the prime objective of logistics is to avail raw materials, commodities, and goods, satisfying four main requirements that include order, cost fulfillment, quality and delivery. Logistics as a result entails several value adding activities that include production, time, location, and control of the supply chain (Rodrigue & Hesse, 2012). It highlights the organizational and material support of globalization. Logistic activities include physical distributions of the goods (derived transport segment), and the materials segment (the induced transport segment). The objective of this essay is to analyze a logistics management case ‘Online Store’ and come up with a detailed discussion on how the business can develop a new online retail business. The discussion will focus on the following logistic activities: Singaporean sourcing operations supplier selection, evaluation and Procurement, International transportation from Singapore to Australia, and Australian Quarantine and inspection clearance (Eauc.hk, 2010). The essay highlights how the above logistic activities can help the business to produce its products at a lower cost, and add value to time and place utility. Singaporean Sourcing Operations Supplier Selection, Evaluation and Procurement Procurement entails more than mere purchase of goods and services. With the increased need for business competitiveness and the growing pressure to deliver value to shareholders, interest in global procurement has been accorded greater attention. Businesses have resorted to global supply chain and procurement as a means for survival and attainment of competitive edge. The amount of money that businesses spend on procurement is often substantial taking approximately 50% to 85% of the company`s revenues. In search for high quality goods but at a lor cost, businesses like the Online Store have turned their attention to Asia for a wide range of sourcing ranging from materials, supplier identification , services to outsourcing. Singapore as a country is strategically located in addition to having sufficient business infrastructure. Because of this attractiveness, global businesses have been attracted to Singapore in their procurement undertakings (Singapore Fact Sheet, 2012). Sourcing Operations A number of rules guide the exportation of goods from Singapore. In its sourcing operations, Online Store has to adhere to these rules. According to Singapore Customs (2012), the following rules have to be adhered to: Fist the company must obtain an out permit through TradeNet. If the goods are not controlled and they are exported through air or sea, the permit has to be obtained within three days of the export. If the goods ate controlled or are being exported to Australia via rail or road, then the permit has to be obtained before exports. As noted in the case, some of the goods will be manufactured in China and sourced to Australia through Singapore. In this case, the business must ob tain an Out re-imported goods permit through TradeNet before it exports the goods under the Temporary Export Scheme. By fully exploiting the free trade agreement existing between Singapore and Australia, the business can benefit in the form of reduced import charges which is passed on to the consumers in the form of low product prices (Dfat.gov.au, 2003). Exports from Singapore Non-Dutiable Dutiable Source: Singapore Customs (2012, p.1) Supplier Selection, Evaluation and Procurement The first process in