Plastics

In: Business and Management

Submitted By jdaddy
Words 386
Pages 2
Africa

Logistics support capability:

Getting a container to the heart of Africa can take up to three weeks at the port on arrival because of roadblocks, bribes, pot-holes and mud-drifts on the road along the way. The cost of fuel and repairs also makes routes uneconomic. It cost more to ship within the country that it cost to ship something from another country to Africa. There are several companies that are trying to make the best of Africa’s creaking infrastructure. One of the leaders is Bollore Africa Logistics.

Pros and cons for each payment method discussed:
Scenario in which it would be advisable or acceptable regardless of risk (why would you):
Cash-in-advance is when payment is received before the ownership of the goods is transferred. Wire transfers and credit cards are the most commonly used cash-in –advance options. Requiring cash-in-advance is the least attractive to the buyer because it creates unfavorable cash flow. Another concern is that goods may not be sent if payment is made in advance.
Letters of credit is one of the most secure forms of payment. Letters of credit is a commitment by a bank on behalf of a buyer that payment will be made to the exporter provided that the terms and conditions have been met.
Consignment in international trade is a variation of open account in which payment is sent to the exporter only after the goods have been sold by the foreign distributor to the end customer. Consignment helps exporters become more competitive on the basis of better availability and faster delivery of goods.
Political stability: logistics infrastructure in Africa is inefficient. It is very costly and difficult to get transport flowing within African countries, not to mention across the borders. Poor infrastructure and lack of funds to develop modern transportation systems hinders efforts at creating efficient supply chains to…...

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