Developing a warehouse in Australia: Requirements and The budget line items (Term Paper Sample)

Developing a warehouse in Australia
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Introduction
The CEO’s market development team has determined that there is an opportunity to open a warehouse in Australia that could serve multiple businesses. The CEO plans to open a “non-resident company” (Land and Tax News, 2012). The CEO has also decided that the warehouse can be opened in any city in Australia. This study is a designed supply chain that includes the operations of a new warehouse in Australia. The paper provides the requirements and organization structure that will be used to manage the new warehouse. The paper also highlights some of the considerations the management can make to ensure a smooth and efficient management of the workforce.
Requirements of the warehouse
In developing the warehouse, the company will have to look beyond the main purpose of a warehouse, which is to store things. The company will first have to evaluate the volume of goods that will be stored. In determining storage requirements, the company will have to start by selecting a good location. There are many factors to consider when choosing the best place to put up a new warehouse. These considerations however vary on whether the company will select a location for a partial or permanent building. These factors may include security, site condition, the context, the proximity to beneficiaries and entry ports. Other factors to consider when putting up the new warehouse are access to labor, the amount of land available and the purpose of the warehouse. After doing great research, the most suitable location to put up the warehouse is Tharwa.
In preparing the planning of the warehouse, the company must consider the space layout of the warehouse, which includes the good receipt areas, goods dispatch, consignment picking and general storage areas. It is also recommendable for the management to consider equipment packing and maintenance, a garbage disposal area and an area for storing all the rejected goods. The management also needs to have several considerations to make in planning for the space layout of the warehouse. The first consideration is leaving enough space to allow easy access to the finished products, which include loading and unloading. The warehouse also needs to set up adequate correct inventory records in every organization offices.Considerations for workforce management
To successfully manage the workforce of the warehouse, the management should use a warehouse management system, a program that can help the warehouse manage its resources. The warehouse can achieve all its manufacturing goals such as reducing waste, increasing profit and growing if it can integrate the program in its system. When the warehouse management system can be well integrated into the system, it becomes easier to manage inventory receipts, stock location and dispatch (National Research Council, Brose, & Millett, 2012). The program can also make the management of operations in the warehouse more efficient and easy. The program can increase the efficiency of the warehouse by around 30% if well used.
The company will require process automation to maximize the efficiency of workforce management. The workforce management program is programmed with good opportunities for process automation, which makes it easy for the warehouse to manage the attendance; work rules compliance and time keep the payroll. Once the program achieves the process automation, it increases its visibility in simplifying complex work rules, labor costs and improving the data accuracy affecting the costs (National Research Council, Brose, & Millett, 2012).The program can reduce all the risks involved in the supply chain. The warehouse can also achieve better control, which also means that it can help save money that was previously lost to inaccurate and inefficiency numbers. Proper integration of the program into the warehouse system will help manage the workforce well. It will also help in saving the non-compliance, inefficiency and inaccurate payroll that usually affect supply chains and manufacturing organizations.
The warehouse management system will optimize how the inventory moves, which will include the material handling equipment and personnel needed to move it. The program will help the warehouse have the leanest and flexible distribution, which will range from the materials to fine finished products to consumer’s distribution. The system will also help in managing the inbound functions of the warehouse, which will include yard management, cross-docking, quality assurance, put-to-store, work order processing, and multi-method receiving. It will also help in managing outbound functions, which include multi-method order picking, good management of shipment order, processing of e-commerce orders, manifestation of parcel and shipping, cartonization, sequenced loading and staging and compiling shipping documents.
Key regulations and other issues related to managing a warehouse in Australia
In developing the new warehouse in Australia, the company will need to understand the regulations of the country concerning foreign investments. The Australian business program allows investors to move to the country and start their own businesses, invest in Australia or manage an existing or new business in the country without having a sponsor. This is only possible if the aspiring investor meets the relevant criteria and requirements, which includes prerequisite assets and background. The government allows an investor to conduct business either through partnerships, sole trading, joint venture, through a trust or as a company (Forlee, 2012). A company that is incorporated outside the country and wishes to conduct business in the country is supposed to register with the branch office in the country or incorporate a partly or whole owned subsidiary company. In this case, the SWM warehouse will have to register a branch since the company is incorporated in the US.
The screening process of the country is very liberal and transparent. The Australian government has the mandate to block proposals that needs to be notified, and which seem not to respect the interests of the country. The Australian government requires corporation valued more than two-hundred and thirty-one million US dollars ($231) to acquire shares or acquire the right to be issued shares (Forlee, 2012). These shares include convertible notes, options and other instruments that can be easily converted into shares. For American investors, there are different exemption thresholds, which are $231 million for sensitive sectors investments and $1004 million in other cases.
The income tax law of the country states that a company is supposed to pay tax if its central control and management are in Australia, is incorporated in Australia, and if the company is not incorporated in the country but conducts its business in Australia (Forlee, 2012). A company based in Australia is supposed to pay Australian tax on its all worldwide assessable income. The company is taxed at a rate of 30%, which is the general corporate tax. This means that the SWM Company is entitled to pay tax.
Export procedures and import procedures in America
The company will have to understand the import and export procedures in the US. The first step in the import and export business in America is to check what the country that the import or export is done requires. Export and import in America is done under the international trade preference, which allows one to import or export good at lower rate of levy charge or customs duty. In America, the duty payable rate depends on the type of imported or exported goods. The trade preferences in America are principally designed to enable importers and exporters have a great access to markets (Shoemack & Rath, 2010). Agreement helps the preferential exporting and importing conditions be placed on items that meet the designed rules.When importing, one must be clear on the originality of the product in order to effectively manage the customs and duty requirements. In every supply chain, there is a significant effect on whether one can import or export products using preferences. Once a company has confirmed the product or goods to be imported, it must manage all the process required by paying the correct duty and submitting the correct paper work.
One must get the set tariff classification code for every good that he or she needs to import. The classification code indicates the import duty that one should pay and whether the importation process will be under preference. The paperwork needed depends on the country goods are imported from (Shoemack & Rath, 2010). The customs authority must stamp and authorize the paperwork. When exporting goods, one can benefit from reduced rates on goods programmed for countries with a preferential arrangement with America.
Supply chain risks and possible mitigations
There are two categories of risk that the supply chain is exposed two, which are external risks and internal risks. The main types of external risks include supply risks, environmental risks, physical plant risks, business risks and demand risks. Internal risks include manufacturing risks, business risks, planning and control risks, cultural risks and mitigation and contingency risks.
In mitigating possible risks, the management will use a supply chain risk management program, which can be defined as the implementations of strategies needed to manage possible risks in the supply chain (Liew & Lee, 2012). The supply chain risk management will be based on risk assessment that will be done every day with the aim of ensuring continuity and reducing vulnerability. The supply chain risk management program will try to reduce the vulnerability of the supply chain, which will be done through a coordi...