Introduction
Globalization and international trade provide an opportunity to import raw materials. Raw materials are natural resources that are limited in supply in North America. The company must outsource either from Uzbekistan, Australia, or South Africa. The company can consider importing from Uzbekistan to reduce transportation costs. The political and economic relationship between Uzbekistan and North America improves importation. The company can acquire the raw material at a reduced cost, reducing the batteries’ manufacturing cost, and thus incurring an increased profit (Wieland, 2020).
Discussion
A Supply chain relationship is a systematic approach to evaluating vendors who supply goods and services to the company (Wieland, 2020). It is essential to ensure the continuity of the business; thus, managers must build a healthy relationship with their suppliers to minimize supply chain risk. To import, the company must establish a buyer-supplier relationship by identifying the strategic supplier partner who will help with the business’s continuity, operation, and profitability. The company will identify its segmented suppliers and develop a supplier strategy before executing.
Technology in the Supply Chain focuses on transforming business processes. The vision to maximize battery cell capacity and production output requires a high level of technology in the business operation and supply chain. Distributed inventory management system improves efficiency and cost-effective means to minimize inventory loss. Additionally, the automated inventory tracker systems improve other systems such as automated warehouse operation, order fulfillment, and strategic source relationships. Such a system improves the movement of goods in Uzbekistan to the company safely and securely.
Sustainable logistic and supply chain system integrates ethical and environmental responsibility to ensure corporate social responsibility. End-to-end supply chains improve transparency in raw material sourcing and inventory management (Kasemsap, 2020). The company is responsible and obligated to ensure that the principle of its trade is sufficient. Uzbekistan must ensure they promote a more competitive environment that is profit-oriented and maintains business standards. The three components of a sustainable supply chain, green, transparent, and circular, support the achievement of the standards from importation to production of battery cells.
Logistic Service Providers (LSP) offer supply chain services, including distribution, transportation, and warehousing services, thus, enhancing efficiency and minimizing the risk of loss and damages (Wieland, 2020). The raw material will require movement from the customs office after importation to the organization. To ensure safety, the company can hire an LSP company. Additionally, the organization needs to identify what is possible in its supply chains. LSP focuses on planning, and risk management, and improves supplier relationships.
Conclusion
The organization should consider importing its raw materials from Uzbekistan. International trade and technology provide the advantage that will help reduce the cost of importation and manufacturing, thus maximizing the profit expected by the company. Australia and South Africa could be considered in the supplier segmentation; however, the distance will increase the cost in addition to customs duty which increases the cost of production.
References
Wieland, A. (2020). Dancing the supply chain: Toward transformative supply chain management. Journal of Supply Chain Management, 57(1), 58–73. Web.
Kasemsap, K. (2020). Advocating sustainable supply chain management and sustainability in global supply chain. Supply Chain and Logistics Management, 1462–1490. Web.