MedicalCare International Harvard Case Solution & Analysis

Logistics

The problems and issues may also arise for the company regarding the labeling requirements and the insurance which shall be met by the exporting companies. The problems also arise of how the particular company would ship the product. It is advisable that companies shall use customs broker in which the shipping terms and requirements may become understandable. This would also allow the companies to understand the export permits and the necessary paperwork which may allow the shipment to pass from India or Sao Paulo to the free trade Dubai market. Since these companies have never handled a foreign shipment, therefore, it is recommended that these companies shall appoint customs broker to safely land their shipment in Jebel Ali.

Health and Environmental Issues

As Jebel Ali is a free trade zone and the companies exporting to Jebel Ali do not have to make custom duty or taxes payments, however, the company needs to pay extra heed to the health and environmental issues regarding the shipment of products. Many countries including United Arab Emirate countries have made strict regulations regarding the protection of their consumers and their environment on prescription drugs, food products, and other chemicals. Since the company deals in prescription drugs therefore, these two companies need to become extra careful regarding their shipment issues. Moreover, these companies need to understand the laws and regulations regarding the handling of the particular prescription drug in the free trade zone, as such in Jebel Ali.

Capacity Utilization and Quality

Before making shipment of the products, the MedicalCare International shall inspect the machineries, the factory, capacity utilization, and the quality of the end product sent by the two companies. Since the two companies have never entered the foreign market, therefore, meeting the expectations of foreign companies would be a challenge and these companies may not be aware of those challenges. Therefore, presenting product requirement is the key in making suppliers aware of the tasks that lay ahead. Since the product concept is related to the pharmaceutical industry, therefore, thorough inspections are necessary for the clearance of the end product. The capacity utilization is another issue facing the company which requires a certain limitation to be met which is why the MedicalCare International is forced to consider different options in choosing its suppliers in different countries (Kersten, 2011).

The mode of transport that shall be selected for the delivery of goods is to be recommended through sea transport. Sea transportation is the cheaper and affordable way for companies to ship in bulk quantity and is a perfect mode of transportation for longer routes. Moreover, Jebel Ali is a free trade zone in which zero cost is charged for the transportation of goods. Since the company has a longer lead time, therefore, the particular mode of transportation would be considered a suitable option. However, the particular mode of transport also carries various disadvantages which include bad weather which might halt the shipment and prolong the lead time. Moreover, the bad weather can also damage the products being shipped to the company which is why it is necessary for companies to maintain insurance so that the loss could be claimed (Stadtler, Kilger, & Meyr, 2014).

The other difficulty that a company might face is to track the exact location of goods which are in transit. This uncertainty may risk the business of MedicalCare International. However, the company has ample experience in managing the shipment as it has been involved in the imprinting of shipments from Rotterdam and Baltimore. Since the trend of the international companies around the world is dependent on the transportation of goods through sea. The shipping technique which shall be used is through containerization which is currently the most dominated modes of transportation. In the particular transportation mode, the products or materials that would be shipped from the two companies would be packaged in the 20ft containers which are also known as isotainers. Lastly, every mode of transportation have their own advantages, but the particular mode of transportation have been selected because there are no land routes available from Sao Paulo or Bangalore to Jebel Ali. The method of air transport would become costly which leaves companies with the only option of sea transportation (Stadtler, Kilger, & Meyr, 2014).

Transit Times and Inventory Level

The exhibits 1,2,3, and 4 show the transit time and the distance covered by the four destinations through which the shipment would be dispatched towards Jebel Ali. After these four destinations are examined only then the company shall be able to make decisions regarding the feasibility of making shipments from these countries. As the company had been initially importing from Rotterdam and Baltimore, MedicalCare International needed to consider other options due to the constraints of capacity and full utilization of machineries in the particular companies...........................................

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