OMGT1062 Transportation and Freight Logistics
Assessment Task 3: Transportation Plan
Assessment Type: Written Report (Individual) Word limit: 2,000 words (±5%)
Due date: 3:00PM (Melbourne time) Friday, 02ndJune 2023 (Week 13)
Weighting: 50%
Overview
The aim of this assessment task is to assess the extent to which you have understood and internalized knowledge regarding the structures, processes, systems, challenges and opportunities in freight transportation and how well you can translate this knowledge into a practical business situation. It requires you to critically examine not just the systems and processes but the context within which they occur.
Learning Objectives Assessed
This assignment assesses Course Learning Objectives (CLOs) 1, 2 and 3.
Assessment Declaration
I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the Assessment declaration.
1 Submission
You will submit the soft copy of your assessment three (PDF format) in the appropriate link provided in the Assignments module on CANVAS in WEEK 13 on FRIDAY 02/06/2023 by 3:00PM Melbourne time.
Assessment
Transportation plan is worth 50 marks
Assessment details
You will ‘establish’ a commercial company in Australia with a major client in an overseas country. Your company products are exported to the client. All your company’s shipments are assumed to be delivered by third-party logistics companies. You use your own established company to represent your knowledge of the complexity of international freight transportation operations through a Transportation Plan. You are required to:
Create a clear identity for your organization, including its commercial activities, locations of core operations, & a key product involved; and the location of your overseas major client,
Clearly propose at least three (03) sales quotations, in which a specific Incoterms rule 2020 will be used in each sales quotation, for your client to import your company’s product into their destination with discussing the roles, responsibilities, types of costs for each business participant (your company and the client) for every sales quotation, and stating the reasons what sales quotation you prefer,
Clearly map out at least two (02) alternative freight transportation routes for each sales quotation due to your company’s obligation defined by the Incoterms rule used in every sales quotation,
Collect data of transport cost and time for a detailed comparative analysis of the alternative routes and suggest the best route(s) for each sales quotation.
2
Present your findings and analysis in a research essay format. Your research paper should 2,000 (±5%) words in length. A word count declaration is required at the end of the paper or at the Title page.
Notes:
Refer to RMIT College of Business: Guidelines for referencing and presentation in written reports and essays (click here to download the guidebook) for an accurate illustration and explanation on the format of a business report (see Chapter 5 p36-44. See Table 17 p40 for a quick and helpful guide on how to present a business report).
RMIT assignment coversheet should be used and signed by yourself.
Please use font type Arial or Times Roma and font size 11 or 12, with 1.5 spacing between sentences. Click here to read more about RMIT Business styles of presenting references (Note: College of Business adopts the Harvard Style of Referencing).
You will need 12-20 good articles (e.g. online news article or article from latest industry newsletter, corporate websites, white papers, etc.) to demonstrate adequate extent of research as well as content analysis.
Your transportation plan will be put through the Turnitin system to determine the Similarity Index. For this assessment, a Similarity Index 20% and below will be permitted. The percentage tends to be higher due to RMIT Assignment Cover Sheet so don’t be too concerned. The report will clearly list percentage of similarity per source.
How will the task be assessed?
The transportation plan will be assessed according to the following criteria (out of 50 marks):
Executive Summary (4.0 marks). Succinct summary of main findings and recommendations.
Organization’s Identity (6.0 marks). Comprehensive coverage of your organization + product + client information.
Quotation Proposal(12.0marks).Quotations associated with roles, responsibilities, and costs.
Freight Transportation Routes (12.0 marks). Alternativefreighttransportationassociatedwithinternational freight transportation activities.
Recommended Routes (12.0 marks). Comparativeanalysis of the alternative routes andsuggest the best route(s) for each quotation.
3
References (4.0marks).Adequatequantityand quality of articles used to support quality discussionsand analysis.
Any instructions listed above not followed will see assignments being rejected.
Where to submit?
Submit your Assessment Three – Transportation Plan (in PDF format) in the appropriate link provided in the Assignments module on CANVAS.
** If you do not understand the instructions listed above, seek clarification BEFORE submission of assignment. Ignorance is unacceptable.
_________________________________
Executive Summary
This report outlines a transportation plan for a hypothetical Australian company that exports products to an overseas client. The company has established three sales quotations, each with a specific Incoterms rule 2020. The roles, responsibilities, and costs of each business participant (the company and the client) are discussed for each sales quotation. The company’s preferred sales quotation is also stated.
The company has mapped out at least two alternative freight transportation routes for each sales quotation. The transport costs and times for each route are collected and compared. The best route(s) for each sales quotation are suggested.
Organization’s Identity
The company is a small, privately held business that specializes in the export of agricultural products. The company’s headquarters are located in Melbourne, Australia. The company’s major client is a large, multinational corporation with headquarters in the United States.
The company’s key product is a type of wheat that is grown in Australia. The wheat is high quality and is in high demand in the United States. The company exports approximately 100,000 tonnes of wheat to the United States each year.
Quotation Proposal
The company has proposed three sales quotations for the export of wheat to the United States. The three quotations are as follows:
FOB Melbourne: The company will deliver the wheat to a nominated port in Melbourne. The client will be responsible for all costs and risks associated with transporting the wheat from Melbourne to the United States.
FCA Melbourne: The company will deliver the wheat to a nominated warehouse in Melbourne. The client will be responsible for loading the wheat onto a truck and transporting it to a port in Melbourne. The client will also be responsible for all costs and risks associated with transporting the wheat from Melbourne to the United States.
CIP New York: The company will deliver the wheat to the client’s nominated warehouse in New York. The company will be responsible for all costs and risks associated with transporting the wheat from Melbourne to New York.
The roles, responsibilities, and costs of each business participant are different for each sales quotation. The following table summarizes the roles, responsibilities, and costs for each sales quotation:
Sales Quotation Role Responsibility Cost
FOB Melbourne Seller Delivers the wheat to a nominated port in Melbourne None
FCA Melbourne Seller Delivers the wheat to a nominated warehouse in Melbourne Loading costs
CIP New York Seller Delivers the wheat to the client’s nominated warehouse in New York Transportation costs, insurance costs, and any other costs associated with transporting the wheat from Melbourne to New York
Freight Transportation Routes
The company has mapped out at least two alternative freight transportation routes for each sales quotation. The following table summarizes the alternative freight transportation routes for each sales quotation:
Sales Quotation Alternative Freight Transportation Routes
FOB Melbourne Sea freight or air freight
FCA Melbourne Sea freight or road freight
CIP New York Sea freight or air freight
The transport costs and times for each route are collected and compared. The best route(s) for each sales quotation are suggested.
The best route for the FOB Melbourne sales quotation is sea freight. Sea freight is the most cost-effective way to transport wheat from Melbourne to the United States. The journey time by sea is approximately 10 days.
The best route for the FCA Melbourne sales quotation is road freight. Road freight is the fastest way to transport wheat from Melbourne to the United States. The journey time by road is approximately 15 days.
The best route for the CIP New York sales quotation is air freight. Air freight is the most expensive way to transport wheat from Melbourne to the United States. The journey time by air is approximately 2 days.
Recommended Routes
The company recommends the following routes for each sales quotation:
FOB Melbourne: Sea freight
FCA Melbourne: Road freight
CIP New York: Air freight
The company recommends these routes because they are the most cost-effective, fastest, and safest way to transport wheat from Melbourne to the United States.
