Question

What are some of the operating challenges related to Supply Chain Management the Canadian company may encounter when shipping to Germany and China in today’s market environment?

Answer 1

The operational challenges for the Supply chain management in Modern day Canada and its new ventures:

· Quality Customer Service: The supply chain needs for the business to consumer faces challenges of modern day in Location, weather of the day like disruptions which are not good for quality care since the delays are not liked by the users.

· Costing: For the new businesses the costing for the supply and the supply chain can be of a big issue which is dependent on the location, the ease of transport like issues may run in high costs.

· Supplier relations: The distance and the connectivity along the relations in the new business is a big part of the new supply chain for business in Canada.

· Unforeseen delay: As the climate and weather along with availability of transport at the place are issues for the delay which for the new business may be of great concern.

· Rapid market changes: The Scope of doing business is fast changing in the Canada and globally which the business of supply chain has to follow.

Canadian company like lumber company should consider appropriate purchase contract with the clients from China and Germany, again shipping of the lumber from Canada to China needs good and competitive measure for its pricing, as the Pricing can Include, Various Site and Operational cost, Holding cost and Order cost and inventory stocking cost, Transportation cost, all these cost could be varied over time due to changing economy in the Canadian Markets and Local market in the China, again currency exchange rate could be changing over time, so Economy can create significant role in changing the prices of the Lumber products and delivery services, however such risk could be negotiated within and shared by Normally both party in contract, Include Insurance party as third party for any uncertainty if caused in future, so strength of economy and current market condition take very important role in the logistics industry, there are many factors those could be variable like Interest rate announcements, Gross domestic product, Consumer price Index, Housing starts, Jobless claims, Government fiscal and monetary policy, those to be considered for gaining idea about the strength of the economy.

Political Environment:

Again political environment of the both country here Canada and China, as such create impact on the logistic and delivery services, may significantly delay the services because of malfunctioning of the Political situation, again pricing of the services could be high due to various political and government related changes, Introduction of various policies, Regulations and Taxes, those can impact the logistics services, even both party can be influenced here the Canadian Lumber company and clients in China and Germany due to changing Political situation.