2nd page below with the case Case Groupiva has been in the local…

Question Answered step-by-step 2nd page below with the case Case Groupiva has been in the local… Image transcription textOverview of Assignment Considering material handling as it is important in the movement of goods from thesupplier to the warehouse. Things we need to consider are the transportation vehicle, placement of goods,cargo liability before we tender the next shipment. Instructions: Taking at look the material charac… Show more… Show more 2nd page below with the case Case Groupiva has been in the local Chile aquaculture industry for nearly fourteen years. They raise salmon and trout for local markets, and have recently negotiated a deal with a small fish processing plant that distributes under a major product label in Chile. Although they run a rather small operation, employing 16 people year-round, Groupiva believes they are in a position to export some surplus and perhaps broker further deals with fish processing plants around the East Coast. They do want to maintain ties with the local fresh fish markets, but sales have been steadily decreasing since the sudden influx of cheaper Oregon salmon on the market. They know their stock is of higher quality and could be exported abroad quite profitably. Groupiva has contacted the government and enrolled in small business export initiatives. This has enabled the company to attend aquaculture conferences abroad and offered them the opportunity to network and make contact with Hungry Ox Food Inc., a Canadian importer. Hungry Ox Food Inc. was eager to negotiate a contract for 2 tonnes of Chile salmon to distribute to a number of clientele throughout the country. Payment of credit was arranged by a Canadian bank. The documents required were a commercial invoice, the insurance policy, a marine bill of lading, and a certificate of quality. Groupiva has arranged to have their fish inspected by a nationally accredited standards organization. Both parties agree in their contract that Groupiva will pay freight to Hamilton and will also insure the shipment. Once the salmon has been delivered, Hungry Ox Food Inc will assume all responsibility. The Chile Food Inspection Agency reports to Groupiva that the fish to be exported is of superior quality, with a fat content of 11 percent. The certificate of quality includes a code for superior quality and also states a color code that is standard to the Salmon scale. Colour coding is a common practice in the fish industry and provides a method of standardization for something as subjective as colour. Both in production and sales, colour is the most important quality parameter for salmon. Salmon buyers can request information on the colour of a delivered lot in the form of a number corresponding to a colour number on the Roche scale. Another salmon colour reference is the colour number on the Salmon scale. Groupiva’s bank, acting as their export advisor, contacts the Company to tell them that the letter of credit has fallen though because the certificate of quality is vague and it cannot be ascertained if the shipment has passed its quality certification. The documents were delivered directly to the buyer for payment. Hungry Ox Food insists on inspecting the shipment upon arrival. Hungry Ox Food is not an experienced salmon importer and usually deals with Spanish Blue Fish and Irish Char. They are not in disagreement that the salmon shipment has passed quality inspection. Upon Hungry Ox Food’s inspection they claim that the fat content of the stock is much higher than is claimed in the quality inspection. They reject the sale and will accept substitute goods but are claiming damages for loss of profit. Groupiva management wonders if they need to rethink their exporting strategy.  Engineering & Technology Industrial Engineering Supply Chain Management BUSN MISC Share QuestionEmailCopy link Comments (0)

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