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International Trade Operations - Parmalat

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International Trade Operations - Parmalat
International Trade Operations
Parmalat Australia

Contents
1.1 Abstract 2
2.1 Introduction 2
3.1 Parmalat Company Overview 3
4.1 Method 3
5.1 Costs of production 3
6.1 Determinants of Production Location 3
6.2 Political and Social Environment 3
6.3 Infrastructure, Communication and Trade Relations 3
6.4 Factors of Production 3
7.1 Logistics and Distribution 3
7.2 Inbound Logistics 3
7.3 Distribution networks and transportation 3
7.4 Reverse Logistics 3
8.1 Problems, Risks and management 3
9.1 Conclusion 3
10.1 References 3
11.1 Appendix 3
11.2 Questionnaire 3
11.3 Minutes 3
11.3.1 Meeting 1 3
11.3.2 Meeting 2 3
11.3.3 Meeting 3 3
11.4.1 Corruption Perception Index 3
11.5.1 Political Instability Index 3
11.6.1 Free Trade Agreements 3

1.1 Abstract

The essence of this essay focuses on Parmalat Ltd and the production & distribution processes of dairy goods, specifically focusing on Singapore as the main logistics chain. The distribution processes and systems whereby inbound logistics & procurement involves local dairy farmers where the company has operations in. Furthermore, the distribution networks of Parmalat are broadly based with 10 distribution centres across various Australian states. Since most dairy products have a short expiry span, emphasis on the closest and fastest possible shipment and delivery to retail shops is taken. The political and social environment of each country is looked at, since issues such as political corruption and red tape agendas make it increasingly unprofitable and can be damaging to the business in the long-term. The Factors of Production that a business needs to consider includes land, labour and capital and the costs associated with them. Lastly, this essay talks about the problems associated with Parmalat’s business operations, the risks that it takes (whether natural occurrences or other unforeseeable risks), and risk management.

2.1 Introduction

In choosing a company to examine regarding



References: n.a. 2005, ‘Frequently asked Questions’, newsgroup, 16th October, Internet Center for Corruption Research, 16th October 2009, http://www.icgg.org/corruption.cpi_2005_faq.html#1 n.a. 2008, ‘CPI Table 2008’, newsgroup, n.d. Transparency International, 16th October 2009, http://www.transparency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table n.a. 2009, ‘Social Unrest’, newgroup, 2009, The Economist, 16th October 2009, http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=874361472 n.a. 2009, ‘The World Factbook’, newsgroup, n.d. Central Intelligence Agency, 17th October 2009, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html n.a. 2009, ‘Free Trade Agreements’, government, n.d. Australian Government: Department for Foreign Affairs and Trade, 17th October 2009, http://www.dfat.gov.au/trade/ftas.html Dr. Helen Peck, Opening the Way to Successful Risk Management in Purchasing and Supply, Report for The Chartered Institute of Purchasing & Supply, 2007.

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