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3. Based on the above mapping, generate a prioritized list of logistics activities to be outsourced.

Justify
your ranking.

CreoScitexs (CS) product range comprised of 200 different finished goods (FG). Each of these FGs required
a large variety of raw materials and sub-assemblies. Up to 3000 items were sourced from different parts
of the world as well as the North American facilities operated by CS. The import process followed by CS
can be delineated as follows:

Material
Forwarder Carrier Customs Warehouse
Supplier

Figure 1 Import - Material Flow Process

The Import and Export teams, were responsible for all activities pertaining to export, import and vendor
scheduling, remained in constant communication with the different links in the supply chain like the
supplier, freight forwarder, carrier and the customs department.

The information flow began with the import team preparing schedules for the suppliers. According to
Exhibit 4, there is interaction with the supplier during the scheduling process as well. In this way the
suppliers concerns can also be accommodated at this stage. Based on the schedules orders are generated
and Purchase Orders are dispatched to the supplier. The order contains the quantity to be dispatched and
the date of dispatch. The Forwarder is also given intimation about the same. The import department
exchanges information with all the external agencies like the supplier, forwarder, carrier and customs.
This information is required to ascertain the location or status of the shipment.

The material flow in the case of exports is shown below:

WH Mfg Unit WH Forwarder Carrier Customs Customer

Figure 2 Export - Material Flow Process

In this case raw material and sub-assemblies from the warehouse are dispatched to the production lines
where the FGs are assembled. These FGs are then sent to the WH. These FGs reach the customer through
the forwarder, carrier and customs. The export department follows up with the forwarder, carrier and the
customs department to ensure timely delivery at the customers works. The customer confirms to the
Export department when the delivery is received.

Materials used in manufacturing sourced from different countries some supplies shipped from CS North
American facilities.
3000 different references procured from overseas suppliers Annual Spend US$70M