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Exporting Computers from Taiwan to Brazil

Exporting Computers from Taiwan to Brazil



Presentation on exporting computers from Taiwan to Brazil via sea route prepared as part of Supply Chain Management course

Presentation on exporting computers from Taiwan to Brazil via sea route prepared as part of Supply Chain Management course



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    Exporting Computers from Taiwan to Brazil Exporting Computers from Taiwan to Brazil Presentation Transcript

    • Computers Taiwan to Brazil Submitted by Ashwin Ramesh GMBA08E115 Hardik Doshi GMBA08A117 Himani Garg GMBA08E118
    • Country of Origin - Taiwan
    • Demographics of Taiwan  Taiwan is an island in East Asia.  Lies 120 km off the southeastern coast of mainland China, across the Taiwan Strait  The island is 394 kilometers (245 miles) long and 144 kilometers (89 miles) wide.  The East China Sea lies to the north, the Philippine Sea to the east, the Luzon Strait directly to the south and the South China Sea to the southwest.  Area of 35,801 km² (13,822.8 sq mi).  "Taiwan" is also commonly used to refer to the territories administered by the Republic of China (ROC) and to ROC itself, which governs the island of Taiwan  Population ~23.7m (as of 2005) ◦ 84% Taiwanese ◦ 14% Mainlander ◦ 2% Taiwanese aborigine
    • Some Facts of Taiwan  Asia’s fifth largest economy  World's 16th largest trading country in 2006, according to BOFT( Bureau of Foreign Trade)  Today it is one of the world’s largest producers of computer-related products, and boasts an extensive, well-established network of industrial zones and a growing number of high-technology industry clusters, which are supported by high-quality human resources and fully integrated supply-chain networks.
    • Main cities of Taiwan  Taipei ◦ is the capital of the Republic of China (ROC) and largest city in Taiwan. ◦ Taipei City, the Taipei County, and the nearby Keelung City together form the Taipei metropolitan area but are administered under different local government bodies. ◦ The major industries in the city include electrical and electronic manufacturing, textiles, metals, shipbuilding, and motorcycle manufacturing. ◦ Taipei City administers twelve districts
    • Main cities of Taiwan  Kaohsiung City ◦ located in southern Taiwan. ◦ most dense and the second largest city in Taiwan ◦ Kaohsiung is a major center for manufacturing, refining, and transportation. ◦ Kaohsiung is the major port which caters to large amount of machinery equipments. ◦ It is an export processing zone—producing aluminum, wood and paper products, fertilizers, cement, metals, machinery, and ships. ◦ With its harbor one of the four largest in the world, Kaohsiung is the center of Taiwan's shipbuilding industry. ◦ Kaohsiung is divided into 11 administrative districts
    • Exports and Imports of Taiwan Major Export Items : Electronic products, Optical Instrument, Iron and Steel, Machinery and Electrical equipments. Major Import Items : Electronic products, Crude Oil, Machinery, Basic Metals
    • Country of Destination - Brazil
    • Location and Size of Brazil  Brazil is situated on the east-central coast of South America  Largest country in South America  Fifth-largest country by geographical area in the world  Fifth most populous country in the world  Fourth most populous democracy in the world.  Bounded by the Atlantic Ocean on the east  Brazil has a coastline of over 7,367 km (4577 miles)  Brazil covers a total area of 8,514,215 km² (3,287,357 sq mi) which includes 8,456,510 km² (3,265,076 sq mi) of land and 55,455 km² (21,411 sq mi) of water.
    • Political Divisions  Politically, Brazil is a Federation of twenty- six states and one federal district  The states are subdivided into municipalities.  The national territory is divided into five main regions: North, Northeast, Central- West, Southeast and South.  The North region is fairly unindustrialized and undeveloped.  The Central-West region has low demographic density and contributes significantly towards agriculture.  The Southeast region is the richest and most densely populated. It has country's two largest cities São Paulo and Rio de Janeiro.  The South region is the wealthiest by GDP per capita.
    • Main cities  São Paulo ◦ largest and richest city of Brazil. ◦ economic center of Brazil ◦ 3 airports ◦ 61 km of metro rail, with 4 lines in operation & 55 stations  Brasília ◦ capital of Brazil ◦ located in the central part of the country. ◦ seat of the federal government. ◦ 1 airport ◦ Metro system available  Rio de Janeiro ◦ is the second major city of Brazil, behind São Paulo. ◦ It was Brazil's capital until 1960, when Brasília took its place. ◦ 5 airports ◦ two subway metro lines ◦ several commuter rail lines ◦ Port of Rio de Janeiro is visited by cruise boats, which travel along the Brazilian coast
    • Population distribution profile  In 2007 ◦ GDP at PPP: 1829.0 US$ bn ◦ Brazil GDP grew more than 5 Percent in 2007 ◦ Population : 189.3m ◦ Per Capita Income (UD$ at PPP) : 9,662
    • Exports & Imports of Brazil  In 2007 ◦ Exports to world : 175.5 BUSD ◦ Imports from world : 162.3 BUSD
    • Major Exports & Imports of Brazil
    • Taiwan Transportation The Taiwan Transportation includes all the modes of conveyance facilities. Road, rail, air and water, all them add up to make the Taiwan Transportation complete. The western region of Taiwan has the most developed transportation system as it is the area that is most populated in Taiwan. This region has the biggest chain of roadways and railways. The roads are highly developed and are well connected with each other. The transportation in Taiwan include the following sectors:  Roadways  Huge network of railways  Major harbors and shipping lanes  Airways
    • Taiwan Transportation Roadways in Taiwan  It include both the national and regional highways. It also includes the urban roads that are interconnected with each other and is extended to the farthest corners of the region.  National Highways are freeways  The construction of the national highways began in 1971 and its design is heavily based on the American interstate highway system.  There are 10 national highways as of 2006.  To improve the highway service quality of Taiwan, the National Expressway Engineering Bureau has been continuously pushing forward with the Taiwan’s Expressway Network Project Total length: 38,197 km (2005)  National highway: 901 km  Provincial highway: 4,680 km  Highways: 20,947 km (including 872 km of freeways)  Urban roads: 16,395, km
    • Taiwan Transportation Huge network of railways ◦ The railways have the biggest chain in Taiwan. It include the metro rail, the light rail, the high speed rail and the general rail. ◦ The rail also connects Taiwan with the other regions of the country. The railway Taiwan is administered by the Taiwan Railway Administration. ◦ Taiwan has an extremely extensive network of railways (1496 km as of 2003). ◦ One of the nation’s major transportation policies is the development of Mass Rapid Transit (MRT) systems for metropolitan areas.
    • Taiwan Transportation Major Harbors and shipping lanes As Taiwan is surrounded by sea from all the sides, sea transportation in Taiwan covers a major part of the Taiwan Transportation. The marine ships and the local ferries comprise the sea . There are currently seven international commercial ports in the Taiwan area, including Keelung, Kaohsiung, Hualien, Taichung, Suao, Anping, and Taipei, play very important roles in economic development. Kaohsiung Harbor is Taiwan’s leading international commercial port, and also the sixth largest container port in the world, handles the container throughput of 9.77 million TEU in 2006, with an increase of 3.2% over the previous year,
    • Taiwan Transportation Airways The airways in Taiwan are controlled by the China Airlines. Eighteen major airports and the heliports comprise the airline in Taiwan. Several number of runways and landing grounds provide the facility of take off and landing for both the domestic and international flights  The two international airports in Taiwan are CKS International Airport near Taipei city in the north and Kaohsiung International Airport in the south.  In 2006, the entire passenger volume of civil air transportation totaled 43.73 million, a decrease of 1.2% compared to 2005.  Both the international (including transit) and the domestic passenger traffic increased by 5.6% and decreased by 10.0% to 26.36 million and 17.36 million respectively, while the cargo volume (freight and mail) totaled 1.81 million tons, a decrease of 0.5%.
    • Transportation Brazil The transportation facility in Brazil has been developed and modern throughout her nascent stage. All the cities are connected to each other through roadways, highways, rail route and air transport. Being a significant country of the Latin America it is well connected to the rest of the world by air transportation. Roadways  The road transportation in Brazil is frequently used by the local residents as well the tourists who visit this country. Bus and cars are ample, easy to rely on and are the best means of road transportation in Brazil.  The buses have a specific route which they follow regularly; however, the taxis and hired cars can be flagged down at any place  Total area : 1,751,868 km Paved: 96,353 km Unpaved: 1,655,515 km (2006)
    • Transportation Brazil Railways Some of the cities of Brazil are blessed with subways or metro rails, besides the normal rail transport. The rail transportation in Brazil is the best in its capital city. There are several trains, connecting different cities within the country. Fares in the metro rail are quite reasonable and affordable by people of all strata. Even on weekends the metro rail of Brazil caters service to the travelers. The stoppages are made in such a way that the tourist locations are well connected to each. The privatization of the country's entire freight railway network between 1996 and 1999 resulted in substantial improvements in the rail infrastructure and rolling stock, as well as gains in efficiency, output, and the quality of services
    • Rail Road network in Brazil
    • Transportation Brazil Air  Apart from the rail and road transportation, the air transportation in Brazil is also praiseworthy. The Presidente Juscelino Kubitschek International Airport, located in the capital city of Brazil, is the principle airport of the country.  A large number of domestic and international airlines as well as cargo flights operate from these airports of Brazil. Ample facilities are offered by the air transportation department of Brazil.  Given the size of the country, air travel plays an important role in long- distance passenger travel, transport of commodities with a high value-to weight ratio, and the conveyance of mail.  Brazil has 26 principal airports (13 of which handle international flights). Regarding airlines, Brazil has six major international, 10 domestic passenger, and three all cargo
    • Transportation Brazil Roadways  The road transportation in Brazil is frequently used by the local residents as well the tourists who visit this country.  Bus and cars are ample, easy to rely on and are the best means of road transportation in Brazil.  The buses have a specific route which they follow regularly; however, the taxis and hired cars can be flagged down at any place.  The Brazalian national network of highways is the fourth largest of the world. It is almost 2 million km long, with approximately 200,000 km of them paved, as of 2005.  The name given to highway in Brazil is “Rodovia”
    • Principle Carriers/ Companies China Airlines Cargo: By air, land and sea  China Airlines delivers cargo to destinations around the world. Ranked among the world's top 10 air cargo companies, China Airlines boasts a fleet of modern freighters, supplemented by the cargo capacity of its passenger aircraft, allowing it to command a highly competitive position in the marketplace.  China Airlines' cargo network spans air, land and sea through agreements with more than 100 air and marine shipping companies.  It has large-scale warehouses in New York, Los Angeles and Luxembourg connected to a trucking network covering the US and Europe.  FLEET: 68 aircraft, including 48 Passenger Jets/20 Freighters (Feb 29,2008)  Total number of employees: 9,916 Employees in Taiwan: 8,208 Employees stationed overseas: 1,708
    • Principle Carriers/ Companies EVA Airlines  EVA Airways has daily complete-frequency connections to major Asian cities.  Linked through our wide network to destinations in Europe, the United States and Australia, EVA Express delivers cargo with minimal transfer and transit handling even more quickly than in the past, not only throughout the Asia Pacific region, but also continent to continent.  EVA Air Cargo stands out in the air freight business for giving shippers the tightest frequency from Asia to both the West and East Coasts of the U.S.  EVA Air operates one of the world's youngest fleets. We use our nine brand new, state-of-the-art MD-11 and five B747-400 freighters to serve major air cargo markets worldwide
    • Principle Carriers/ Companies Cosco Services  Cosco started its container activities in Brazil in 1993. But, in a few years it developed important services that supplement its main activity (ocean-freight) and help to build its image of deep reliability and respect to the market .  At any point of the transport operation, Cosco's tech-nicians can track and localize your container to inform: its exact location, if it's on the ship or already unloaded, if the transshipment was already done, transit times, etc.  This is only possible because Cosco has invested in the development of a cargo tracking system (T-com System) that interconnects all brokers involved in the process.  Through Cosco-Trans Interna-tional Ltda., another company affiliated to the Group, Cosco offers its customers the best operation planning and coordination service for ground transportation between the port of Santos and the main Brazilian capitals, or other localities in the interior
    • Product Profile  Considering a Student Laptop ◦ Height: 1.2 inches, ◦ Width: 12.4 inches ◦ Depth 10.1 inches ◦ 14.4 – inch Display  Thin-and-light Laptops ◦ weighing typically between 4.6 and 6 lb (1.8–2.7 kg)  Mainstream Laptops ◦ weighing between 5 and 7 lb (2.3–3.2 kg)  built-in keyboard, touchpad, pointing stick for input, though an external keyboard or mouse can also be attached.
    • Packaging a computer 1. Use a heavy corrugated cardboard box with extra space for protective material. 2. weight capacity of the box should exceed computer and accessories. 3. Remove cover from the outside of the box. 4. Wrap computer in bubble wrap or other cushioning material, covering all sides. Seal with tape. 5. Wrap mouse, manuals, AC adaptor and other accessories separately. 6. Fill open space in box with bubble wrap, polystyrene "peanuts" or "noodles," crumpled newspaper or other cushioning material.
    • Packaging a computer 1. Make sure the computer can't move inside the box. 2. Put a duplicate shipping label with contact details inside box. 3. Seal box with pressure-sensitive reinforced tape, water-activated paper tape. 4. Cover seals with extra tape. 5. Mark complete return and delivery addresses on a single label. 6. Mark "FRAGILE" on all sides of the box.
    • Bar Codes & RFID  Bar Codes ◦ Easy identification ◦ More established ◦ Less costly ◦ Easy to use and implement  RFID ◦ Better traceability ◦ Mainly used in assembling and tracking ◦ Costly and more sound system ◦ Can hold more data
    • HS Codes for Computers  991599 Computer Programming Services  991799 Computer Integrated Systems Design  992099 Computer Facilities Management  992199 Computer Rental & Leasing  992299 Computer Maintenance & Repair
    • Suitable modes of transportation  Air transport  Ship transport  Rail transport  Road transport
    • Popular Computer Brands  Acer in Taiwan  Other countires ◦ Lenovo, China ◦ Dell, US ◦ Sony, Japan ◦ Toshiba, Japan ◦ HP, US
    • Major city for Import of Laptops  São Paulo ◦ economic center of Brazil ◦ Most populous in Brazil and fifth in the world by population density ◦ Largest consumer market of the state in the country. ◦ 19th richest city of the world ◦ The per capita income for the city was US$ 14139.01 (2005). ◦ Well developed air, rail, road network.
    • Ports  Brazil has thirty-six deep-water ports.  The largest ones are Belém, Fortaleza, Ilhéus, Imbituba, Manaus, Paranaguá, Porto Alegre, Recife, Rio de Janeiro, Rio Grande, Salvador, Santos, and Vitória.  Santos, São Paulo State ◦ Brazil's major port, in terms of the value of exports and imports ◦ Latin America's largest port. ◦ Located 72 km south of São Paulo, ◦ Handles daily average of 50,000 tons cargo.  Ports of Rio de Janeiro and Vitória. ◦ Although all three ports handle some trade with other Latin American countries, they traditionally have handled more trade with Europe and the US, and the east Asian presence is increasing.
    • Transportation Flow  Destination Port: Santos  Departing Port: Kaohsiung, one of five new Free Trade Zones designed to serve International Logistics  Mode of Transport: Sea  Logistics Company: Fedex
    • Transportation Flow
    • Transportation till Day 5
    • Transportation till Day 10
    • Transportation till Day 17
    • Reasons for choosing Fedex  Offices in Santos, Brazil and Kaohsiung, Taiwan  Guaranteed Delivery from Fedex and listed on Taiwan government website as a preferred company  Dell uses the same company for logistics so there is a point of reference
    • Documentation Required  Proforma Invoice  Letter of Credit  Commercial Invoice  Certificate of Origin  Packing List  Insurance
    • Charges  Kaohsiung handling charges NT $40.90  Warehouse Handling: NT $84.20  5-Ton Forklift: NT $792 per hour  Labor charges: NT $653 per worker per hour  Freight Charges: NT $14 a mile  Distance: Approx 6000 miles  Journey Time: 17 days