Transportation Plan for Exporting Chocolates from

Switzerland to Singapore

Global Logistics Management Presentation - Group 5

MGB-GLSCM January 2014 Cohort

Team Members

1. Saurabh Agrawal

2. Vishal Krishna Prasad

3. Syed Zahed Hussain

4. Sanket Golechha

Agenda

• Problem Statement

• Order Details

• Product Description

• Order Flow Cycle

• Transport Route

• Cost Analysis

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• Time Analysis

• Payment & Document Cycle

• Special Requirements

• Risks Analysis

• Rational

• List of Documents

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Problem Statement

To draft out a Transportation Plan for Exporting Chocolates

from Switzerland to Singapore

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Order Details

Seller:

Lindt & Sprüngli (International) AG

Seestrasse 204, CH-8802 Kilchberg

Switzerland

Buyer:

SP Jain School of Global Management

10,Hyderabad Road, Off. Alexandra

Singapore

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Freight Forwarder:

Kuehne & Nagel Inc.

Dorfstrasse 50,City Schindellegi

Switzerland

Shipper:

Maersk Line Inc.

Herostrasse 7,Postfach 1432

Zurich

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Order Details

• Origin Port:

Port Antwerp (BE), Belgium

• Destination port :

Port Singapore (PSA), Singapore

• Order Quantity:

1000 kilogram (Unit Weight 100 gms)

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• Order Receive date:

16/10/2014 (Tuesday)

• Payment Terms:

Letter of Credit (Sight)

• INCO Term:

Ex-works (Seestrasse)

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Product Description : Lindt-Lindor Chocolate 6

German Schokolade

English Chocolate

French Chocolat

Chinese 巧克力

Qiǎokèlì

CN/HS number 1806 FF

• Type: Premium Truffle Type Chocolate

• Speciality:Filled With Liquid Cream and assorted

• Life Period : 6 Months (B.B.)

• Temp. for Transport: 10-12 *C

• Packaging: Thermal Insulated Temp. ControlledMGB-GLSCM

Packaging Requirements

• Packaged in aluminum foil, composite

films, paper and plastic trays and then

packaged in mill and corrugated board

cartons.

• Strapped with plastic or metal strapping

• Conventional pallet sizes

(800x1200 mm and 1000x1200 mm)

• Temperature Controlled Containers

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Special Requirements

Cargo handling

1. The goods be protected from Moisture

2. Damp conditions reduces quality of the chocolate

Temperatures Variation

3. Packaging sensitive to moisture and loses stability.

4. Since the cargo is relatively sensitive to breakage,

the packages must be handled with appropriate care.

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Stowage Space Requirements

1. Cool, dry. To provide protection against solar radiation,

chocolate is best stowed below deck.

2. NO stored near heat sources (heated double bottom tanks,

engine rooms), as its melting point is approx. 28°C.

Cargo Securing

1. Cargo is impact- and pressure-sensitive, must be secured in

such a way that they are prevented from damaging each other.

2. Spaces between packages must be filled, to prevent slippage

or tipping. By selecting the correct packaging size or cargo unit ,

holds can be tightly loaded (without spaces).

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Order Flow Cycle 9

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Transportation Route – Seestrasse - Port Antwerp - Singapore

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Our Rational

• Road Transport from Seestarsee to Antwerp

The frequency of Ships at Port Antwerp is twice as compared to Basel Port,

Switzerland

Being EU region free flow of transportation

• Choosing Kuehne & Nagel as Freight Forwarder

Across EU reach

Reputed brand in Refrigerated Cargo Handling (EU)

Dedicated DC and cargo handling at Port AntwerpMGB-GLSCM

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Our Rational

• Choosing Maersk Line Inc. as Shipper Agency

Direct Shipment to Singapore

Reputed Brand in field of Shipping

Providing best possible Delivery Time (As on 17/09/2014, Maersk Line official Website)

• Choosing INCO Term: Ex-Works (Seestarsee)

Chocolate Companies generally does not engages in outward logistics

CMA-CGN has a EU wide reach and integrated Logistics Infra.

Lindt Inc. is in more dominant bargaining PositionMGB-GLSCM

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List of Documents

S.No. Document Type Issuing Authority Issued Date

1. Bill of Lading (Antwerp) Captain of Ship

(Maersk Line)

21/09/2014

2. Certificate of Origin Chamber of Commerce, Switzerland 19/09/2014

3 Packing List Lindt & Sprungli 19/09/2014

4. Purchase Order SP Jain School of Global Management 17/09/2014

5. Commercial Invoice Lindt & Sprungli 19/09/2014

6. Shippers Letter of Instruction Kuehne & Nagel 20/09/2014

7. Letter of Credit (Sight) EBD Emirate, DXB 17/09/2014

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Risks factors – Temperature, Odor, Humidity, Contamination

Risk Factor Humidity Source

Relative humidity 65 - 70%Excessive humidity can cause sugar bloom.

Water content 0.5 - 1.6%

Moisture dissolves the sugar, evaporation of the water causing the sugar to recrystallize

Maximum Equilibrium moisture content

70%Can turn chocolate musty, moldy and rancid

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Risk Factor - TemperatureTemperature

rangeRisks

Favorable travel temperature

10 - 18°CStorage and transport temperatures are 10 -18°C

4.4 - 7.2°C

Risk of condensation if refrigerated cargo is unloaded in a warm environment

Risk Factor -Odor Risks

Active behavior Moisture and high temperatures

may cause the odor to turn musty.

Passive behavior Can absorb foreign odors very

easily

Unsuitable packaging materials

may result in an unpleasant off-

flavor.

Risk Factor- Contamination Risks

Active behaviorChocolate does not cause contamination.

Passive behavior Chocolate is extremely sensitive to contamination. It must be protected from dust, dirt, fats and oils.MGB-GLSCM

Risks Factors –Mechanical Influences and Ventilation

Mechanical influences

> Handled with appropriate care- Sensitive to

breakage

> High stresses may lead to damage to carton walls

and edges

> Packages must be secured appropriately and

secured in the door area so that they do not fall out

of the container.

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Ventilation

> If the product is at "shipping dryness", i.e. the water

content of the paperboard cartons is 5 - 8%, ventilation

is not normally required.

> Risk of cargo sweat- wetting of the paperboard

cartons and thus in a reduction in stability and strength

and depreciation of the product itself.

> Recommended ventilation conditions: air exchange

rate: 6 changes/hour (airing)

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Personal Carriage

Factor Description

Ordering Mode Online (Company Website)

Delivery Time 2 days to 2 weeks (Buyers Choice)

Payment Terms Advance Payment

Freight, Customs and

Insurance

Paid by Seller

Maximum responsibility Seller

INCO Term DDP (Delivered Duty Paid)

Mode of transport Usually by Air (Chosen By Buyer)

Delivery Location Buyer’s doorstep

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Assumptions

1. Cost are taken on the basis of online Information

and past cases

2. External Relations of Lindt Inc. are good with all

shippers

3. The time for port clearance at Singapore and

Antwerp is 1 day

4. External Environment is stable

5. Buyer bears all the cost of transportation and

Customs

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6. Current order is fulfilled from stock

7. All the stakeholders work in healthy collaboration

Thank You for

your time!

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