Supply Chain Security in Compretudo’s Global Trade from Qatar to Brazil (Essay Sample)

Supply Chain Security in Compretudo’s Global Trade from Qatar to Brazil Student’s Name University Course Professor Date Supply Chain Security in Compretudo’s Global Trade from Qatar to Brazil Global sourcing is characterized by complexity due to insufficient end-to-end visibility during the movement of goods (Newlands & Al Hussan, 2019). For this reason, businesses need to collaborate with reliable freight forwarders like Fast and Lose (F&L), and other trustworthy players in the supply chain. Compretudo, a chain store in Brazil wishes to source items from two trade lanes, that is, from my country Qatar, and the neighbouring country, Iran. The consignment will then be shipped to Brazil and supplied to Compretudo’s stores. The benefits of sourcing from the two countries and the contribution of logistics parties will be discussed along with the potential security risks in the supply chain. Outsourcing Benefits and Risks There are several benefits that Compretudo will have for sourcing items from Qatar and Iran. First, there are cost-related benefits such as lower taxes and tariffs that countries consider when selecting sourcing partners. In this case, there are trade agreements that will facilitate cost-effectiveness during the transactions between Qatar and Brazil. According to Ferabolli (2021), Qatar is a member of the Gulf Corporation Council (GCC) while Brazil is a member of Southern Common Markets (Mercosur). The two organizations entered into a trade agreement that negotiated trade between the two blocks. There is a chance that the GCC-Mercosur negotiations will reduce the expenses during the movement of goods from Qatar to Brazil. Also, Compretudo will benefit from faster processing by customs and incentives like lower rates due to F&L’s contribution to Authorized Economic Operators (AEO). Second, the market accessibility of Qatar and Iran makes it easy to transport the goods to Brazil. Successful sourcing and movement of products across the supply chain require countries to have a reliable transportation system for convenient accessibility (Parthiban et al., 2020). The strategic location of the Middle East where both Qatar and Iran are located facilitates efficient movement of goods across continents. They also have political stability which ensures secure business operations. As growing economies, the countries offer Compretudo an opportunity to explore the market in its growth strategy and benefit from the high consumer base. This will be enhanced during the company’s interaction with suppliers in the sourcing process. Third, infrastructure development in the two countries offers efficient operations across the supply chain. According to Newlands and Al Hassan (2019), difficult trade situations are often experienced in developing countries following infrastructure shortcomings such as difficult terrain and lack of convenient transportation between trade partners. However, this is not the case for Qatar and Iran as the two have heavily invested in modern ports, advanced rail and road networks, and logistics to facilitate global business partnerships. The infrastructure makes Qatar and Iran business hubs for Compretudo’s sourcing and supply chain operations. The risks that are likely to emerge during this global sourcing include regulatory compliance since every country has unique regulations. According to Xie et al., (2023), failure to comply with trade regulations in given jurisdictions could lead to legal charges or loss of finances in case of penalties. Therefore, logistics parties that F&L will be involved in the shipment will be mandated to continuously remain updated on Iran and Qatar’s trade regulations to avoid mistakes that may derail the operation. F&L is always aware of any adjustments in global trade regulations following its membership in the International Chambers of Commerce (ICC). Since the language barrier is a possible threat in this trade, translators can be hired to promote effective communication among players in the chain. Roles of Logistics Parties in Moving the Consignment Fast & Lose and the rest of the players have a collaborative role to play in the safe transportation of goods from Qatar and Iran to Brazil. The suppliers have a role in ensuring the goods have quality standards to encourage continuous business with Compretudo. F&L will contract a leading logistics company to facilitate the movement of goods from Iranian suppliers to the airport. The transporters' role in this process is observation of regulations while also ensuring the goods are safe from dangers such as loss or damage. F&L freight forwarders will prepare clearances such as commercial invoices and take the items through the clearance process. F&L will facilitate cargo booking for the goods to be flown to Qatar. Customs authority in all Qatar border posts including the airport and seaport will be responsible for inspecting the goods for regulation requirements as well as charging the applicable rates. Road transportation will be more efficient and affordable during the movement of all goods across Qatar to the consolidation point at Qatar’s coast. The role of the consolidators in the selected warehouse will be to ensure that the goods are placed in the right containers depending on their destination in Brazil (Parthiban et al., 2020). The border officials in Qatar’s seaport are then responsible for inspecting the cargo before issuing clearance. A shipping company will then be used to transport the goods to Brazil via the sea and oversee the loading, transit, and unloading. F&L freight forwarders will help in the cargo clearance in Brazil’s seaport while a logistics company will transport the goods by road to a distribution center. The center has a role in collecting the shipment, inventory management, and coordinating their distribution to the respective Compretudo outlets across Brazil by road. For instance, Third-party logistics (3PL) is widely used in Brazil for truck delivery of goods. (Newlands & AI Hussan, 2019). Effective coordination between the parties and efficient communication will play a significant role in the supply chain’s success. Supply Chain Security Risks and Responses Shipment of the consignment across the Middle East and to Brazil might face the potential threat of terror groups that might interrupt transportation at the ports. There have been such cases in this region in the past and it would be advisable for players in the supply chain to mitigate the risk. This security issue can be addressed by ensuring that the shipment goes through non-intrusive inspection technology...