Bollore Logistics Inquiries Harvard Case Solution & Analysis

Bollore Logistics Inquiries Case Study Solution

Threat of substitute

If the quality become poor and there is a delay in the provided services and at the similar time, the rates of freight are similar, there is a likelihood that the customers would prefer substitute. Sine Bollore has largest network of shipping and logistics in around 90 countries, the threat of substitute is moderate for the company. But in case, the price of oil shoot up the company would be pressurized to increase the charges for the transportation. If the substitutes such as goods train, trucks and airlines cost the same charges of the shipping and logistics companies, the customer would move towards substitutes.

Supply / value chain analysis of Bollore Logistics

Bollore Logistics is a leading provider of international logistics and transport services to its diverse customer base since its inception. It has been consistently adapting to the changing needs of the customers, which in turn enriched its expertise to become one of the top 10 logistics and transport companies and tier-one supply chain partner with the largest network of logistics in more than 90 countries. It delivers variety of custom-fit solutions to its customers with the high added value that draw on an understanding and in-depth experience of different industries. Not only this, the constant quest for optimisation and improvement is central to the company‘s values and culture.

It operates number of department which includes marine transport, air transport, custom brokerage and road transport. The marine transport department is further divided into export and import groups. The services that the company offers to its customers are focused on direct full container load (FCL) shipment. The Bollore Logistics Canada has been acting as a consolidator for the multiple shipment called less than container load (LCL). Bollore Logistics guarantees end-to-end management of operations and proximity services (Heskett, 2019).

Recommendation

The set of recommendation for three clients are suggested below;

Atlas mining and the Amiko mine in New Caledonia

The recommded Incoterm to the case is EXW in which the risk and cost of tarsbporttaion would be tranfereed to the buyer of the product or services. It is highly suitable Incoterme due to the fact that the mode of trabnsporttaion is occean freight.

Due to the 14000 km distnace between Trios-Rivieres and Caledonia, the seller would only be entitled or responsible to make the shipment of product available at right time and right destination for the customers. It would most likely provides a clear picture of all the buyer upfront cost. This Incoterm would be suitable for the seller, thus it represents the minimum obligation for them.

ProLab + & Clinica Alana

To satisfy both seller and buyer in the case, the best recommnded Incoterm would be FCA (Free Carrier), it is due to the fact that it provides Clinica Alana the options to select the best transportation mode it would be most comfortable with. The seller or proLab+ would be responsible to fulfil its obligations when seller would handed the products. Since, Prolab+ has been seeking to meet the requirmemnts of customer to make the sale and the Clinica Alana’ main concern was the condition of products upon its arrival at the destination, so the seller would be bearing risk and cost for the good’s shipment. Upon the delivery of the rpoducts, the risk of damnage or loss would be transfer to the buyer.

Cirque Hemisphere and the Athens Theatre

Since, the congestion at port was the foremost risk, so under this scenario, the recommended Incoterm is FAS, in which the seller or Cirque Hemisphere would be responsible to arrange transportation of the goods to the theatre, but the seller would no longer be liable to insure the shipment of the product. The responsibility over the seller for the safe shipment of product would be beneficial for the buyer, hence there is a likelihood that it would gain more contracts in the future from the similar buyer (Incoterms 2010, 2015).

The chart provided below would help in understanding the carriage, risk transfer and cost under each incoterm.

Conclusion

The diverse concerns and queries of different customers are addressed through providing the sound advice in terms of best and suitable Incoterm for bot seller and buyer. For the Atlas mining and the Amiko mine in New Caledonia, the recommded Incoterm to the case is EXW in which the risk and cost of tarsbporttaion would be tranfereed to the buyer of the product or services. It is highly suitable Incoterme due to the fact that the mode of trabnsporttaion is occean freight. For ProLab + & Clinica Alana, the best recommnded Incoterm would be FCA (Free Carrier), it is due to the fact that it provides Clinica Alana the options to select the best transportation mode it would be most comfortable with.Under Cirque Hemisphere and the Athens Theatre scenario, the recommended Incoterm is FAS, in which the seller or Cirque Hemisphere would be responsible to arrange transportation of the goods to the theatre, but the seller would no longer be liable to insure the shipment of the product.

Exhibit A – Porter five forces model

Exhibit B – Suggested Incoterm

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