LGMT 682 ASSIGNMENTS

LGMT 682:

I) 5.2 - Discussion: Module 5

Post your answer to only one of the topics below. Begin your post with the question you are answering and then make your response.

1. Using the internet or other resources, describe at least one example of a major firm located in a new city or state and list the benefits described by the firm or local government officials.
2. How can the internet be used to assist in the site selection process? Give at least one example to illustrate your point.
3. Free trade zones are frequently located around major airports or seaports. Discuss how locating a free trade zone at a secondary international airport (meaning predominantly cargo and not passenger) can be beneficial to a community and contribute to the region's supply chain capabilities. Use an airport such as the one located in Louisville, Kentucky as an example.
4. There are a variety of software applications that can be used to assist in the site selection process. Using the internet, identify and briefly describe at least one example of a software application that can be used by logistics managers to facilitate location decision making such as the use of Geographic Information Systems, network optimization modeling, transportation modeling, etc.

Reply to at least two of your classmates on different topics than your original post.

CLASSMATES POSTS:

1) Zimmerman,

1. Free trade zones are frequently located around major airports or seaports. Discuss how locating a free trade zone at a secondary international airport (meaning predominantly cargo and not passenger) can be beneficial to a community and contribute to the region's supply chain capabilities. Use an airport such as the one located in Louisville, Kentucky as an example.

Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States' version of what are known internationally as free-trade zones.

Foreign and domestic merchandise may be moved into zones for operations, not otherwise prohibited by law, including storage, exhibition, assembly, manufacturing, and processing. All zone activity is subject to public interest review. Foreign-trade zone sites are subject to the laws and regulations of the United States as well as those of the states and communities in which they are located. (U.S. Customs and Border Protection, 2015)

Orlando International Airport's Foreign Trade Zone is located in the only quad-modal transportation hub in the world, offering access to all global destinations. International business is made easy through a superior network of air routes, interstate highways, rail systems, deep water ports, and space transportation through launch facilities at the Kennedy Space Center. Zone activities may include:

• Assembling
• Cleaning
• Exhibiting
• Manufacturing
• Processing
• Relabeling
• Repackaging
• Repairing
• Storing

Foreign Trade Zone #42 has been helping corporations take advantage of the Foreign Trade Zone program since they were established in 1979. As a general purpose zone, were situated in the heart of one of the country's fastest growing airports. They are strategically located near all major distribution channels (air, land, sea and interstate) and ideally suited to meet business needs. Our experienced personnel and the areas Customs Brokers are available to help you with everything from paperwork to regulation information.

Reasons to Using Foreign Trade Zones

1. When imported material has incorrect country of origin markings, you can avoid fines and penalties by entering merchandise into the zone and remarking or re-labeling it before making a U.S. Customs entry.
2. Merchandise entering through the zone is not subject to state, local ad valorem or inventory taxes.
3. Merchandise can be transferred to the zone and held until a quota is opened. The benefit is a quicker response time because the merchandise is already in the U.S.
4. Parts subject to quota may be manipulated or processed to create a product that is not subject to quota.
5. Because insurance does not have to include Customs duties, costs are reduced.
6. Exports returned if items are not registered with U.S. Customs, you can return merchandise to the Foreign Trade Zone and eliminate duties.
7. Foreign Trade Zones contribute to quality control by ensuring that U.S. Standards are met. Items below standards can be repaired, returned or destroyed.
8. Merchandise can be transferred from one zone to another, to a subzone, or removed from a zone temporarily for certain activities.
9. Zones are subject to U.S. Customs supervision and security requirements.

Few government programs have been more instrumental in attracting international trade throughout the United States than Foreign Trade Zones. In fact, the total value of merchandise moving through Foreign Trade Zones exceeds several hundred billion dollars annually. Why the success? In short, merchandise can be admitted to a zone without a formal Customs entry or payment of Customs duties or government excise taxes. This ability to defer, reduce or even eliminate the payment of Customs duties is a benefit that thousands of U.S. Companies take advantage of every year.

Because businesses today have specialized needs, we offer a number of building and land options. To begin with, we offer almost unlimited lease options (office, distribution center or warehouse) or a build to suit from any of the airport developers. Land is available for companies wishing to build their own facilities, and sub-zone status is available off-airport locations. (Foreign Trade Zone #42, 2015)

As you examine the benefits of these foreign trade zones, it is apparent there are several areas that supply chains are enhanced. The requirements that require a capital outlay in warehouses and equipment can be reduced. There are multiple other benefits that can either be a cost savings or it provides a way to defer tariffs and taxes. As illustrated by Orlando’s FTZ and its quadmodal capabilities, the ability to transfer to other modes of transportation is readily available. Then there is the local impact on the economy through jobs and companies that have superior expertise knowledge, and major infrastructures that support these facilities. The community reaps the economic benefits.

References:

U.S. Customs and Border Protection, (2015), About Foreign-Trade Zones and Contact Info, An Introduction to Foreign-Trade Zone, Retrieved from (Links to an external site.)http://www.cbp.gov/border-security/ports-entry/cargo- (Links to an external site.)security/cargo-control/foreign-trade-zones/about

Foreign Trade Zone #42, (2015), Retrieved from http://www.orlandoairports.net/cargo/ftz.htm

2) Raymond,

1. There are a variety of software applications that can be used to assist in the site selection process. Using the internet, identify and briefly describe at least one example of a software application that can be used by logistics managers to facilitate location decision making such as the use of Geographic Information Systems, network optimization modeling, transportation modeling, etc.

As an Analytical Analyst I work constantly with software application that can be used to assist in some aspect of the site selection process. Since taking this course I have notice that one of the best application and most user-friendly software I have worked with over the years is Google. Google has many features that have been covered in the textbook to include Google maps that includes an offline feature, navigation feature, distance measurement, time lapse travel and around option that provides you with significant features in the area. In case your business search need additional power than Google Earth provides that extra boost that your site selection needs to narrow into a specific area. Although Google does provide a proficient Analyst with the basic system for those who do not have the analytical mindset there is Geography-based Business Information Solutions (GbBIS).

GbBIS, is one of the leading provider of geographic-based information solutions. It provides companies with the tools such as census reports, crime risk, custom reports, geographic area reports, market area statistics, demographic data, political data, postal data, street databases, and radius/ drive time reports. These mapping solution and data help in defining sales territories, planning delivery routes, profiling customers, finding new customers, identifying new markets, GeoCoding locations, or with any number of business solutions. The software application also has mapping services that consist of 360 terrain mapping similar to Google Earth, custom maps, demographic maps, sales territory maps, target marketing and traffic counts. (GbBIS, 2015)

Reference:

Geography-based Business Information Solutions (GbBIS). (2015). America's Resource for Geography-based Business Information Solutions: About us. http://www.gbbis.com/information/about-us

Moncka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2011). Purchasing and supply chain management (5^th ed.). Mason, OH: South-Western/Cengage.

Murphy, P., & Knemeyer, A. (2015). Contemporary logistics (11th ed.). Upper Saddle River, NJ: Prentice Hall.

PS: BOTH REPSONSES TO MY CLASSMATES CAN BE POSITIVE OR NEGATIVE.

II) Submit your responses to the questions below (taken from the textbook's questions for discussion and review).

Chapter 9:

1. Question 1 - Explain how the location decision process involves several layers of screening or focus.
2. Question 2 - How have cost considerations influenced facility location decisions?
3. Question 3 - In what way is the location of customer markets a strategic consideration in facility location?
4. Question 4 - Discuss the factors that influence the number of facilities that a firm chooses to operate.
5. Question 5 - How does a raw material's status as pure, weight-losing, or weight-gaining influence the facility location decision?
6. Question 6 - Discuss how population can be viewed as both a market for goods and a source of labor.
7. Question 8 - Discuss the advantages of locating manufacturing, assembly, or distribution facilities in countries with relatively low wages.
8. Question 9 - What are right-to-work laws? How do they influence locational decisions?
9. Question 10 - What are expatriate workers? What challenges do they face?