Presentation on exporting computers from Taiwan to Brazil via sea route prepared as part of Supply Chain Management course

1. Computers
Taiwan to Brazil
Submitted by
Ashwin Ramesh
GMBA08E115
Hardik Doshi GMBA08A117
Himani Garg GMBA08E118

2. Country of Origin - Taiwan

3. Demographics of Taiwan
 Taiwan is an island in East Asia.
 Lies 120 km off the southeastern coast of mainland China, across
the Taiwan Strait
 The island is 394 kilometers (245 miles) long and 144 kilometers
(89 miles) wide.
 The East China Sea lies to the north, the Philippine Sea to the east,
the Luzon Strait directly to the south and the South China Sea to
the southwest.
 Area of 35,801 km² (13,822.8 sq mi).
 "Taiwan" is also commonly used to refer to the territories
administered by the Republic of China (ROC) and to ROC itself,
which governs the island of Taiwan
 Population ~23.7m (as of 2005)
◦ 84% Taiwanese
◦ 14% Mainlander
◦ 2% Taiwanese aborigine

4. Some Facts of Taiwan
 Asia’s fifth largest economy
 World's 16th largest trading country in 2006, according
to BOFT( Bureau of Foreign Trade)
 Today it is one of the world’s largest producers of
computer-related products, and boasts an extensive,
well-established network of industrial zones and a
growing number of high-technology industry clusters,
which are supported by high-quality human resources
and fully integrated supply-chain networks.

5. Main cities of Taiwan
 Taipei
◦ is the capital of the Republic of China (ROC)
and largest city in Taiwan.
◦ Taipei City, the Taipei County, and the
nearby Keelung City together form the Taipei
metropolitan area but are administered under
different local government bodies.
◦ The major industries in the city include
electrical and electronic manufacturing,
textiles, metals, shipbuilding, and motorcycle
manufacturing.
◦ Taipei City administers twelve districts

6. Main cities of Taiwan
 Kaohsiung City
◦ located in southern Taiwan.
◦ most dense and the second largest city in Taiwan
◦ Kaohsiung is a major center for manufacturing, refining,
and transportation.
◦ Kaohsiung is the major port which caters to large
amount of machinery equipments.
◦ It is an export processing zone—producing aluminum,
wood and paper products, fertilizers, cement, metals,
machinery, and ships.
◦ With its harbor one of the four largest in the world,
Kaohsiung is the center of Taiwan's shipbuilding
industry.
◦ Kaohsiung is divided into 11 administrative districts

7. Exports and Imports of Taiwan
Major Export Items : Electronic products, Optical Instrument, Iron and Steel,
Machinery and Electrical equipments.
Major Import Items : Electronic products, Crude Oil, Machinery, Basic
Metals

8. Country of Destination - Brazil

9. Location and Size of Brazil
 Brazil is situated on the east-central coast
of South America
 Largest country in South America
 Fifth-largest country by geographical area in
the world
 Fifth most populous country in the world
 Fourth most populous democracy in the
world.
 Bounded by the Atlantic Ocean on the east
 Brazil has a coastline of over 7,367 km
(4577 miles)
 Brazil covers a total area of 8,514,215
km² (3,287,357 sq mi) which includes
8,456,510 km² (3,265,076 sq mi) of land
and 55,455 km² (21,411 sq mi) of water.

10. Political Divisions
 Politically, Brazil is a Federation of twenty-
six states and one federal district
 The states are subdivided into
municipalities.
 The national territory is divided into five
main regions: North, Northeast, Central-
West, Southeast and South.
 The North region is fairly unindustrialized
and undeveloped.
 The Central-West region has low
demographic density and contributes
significantly towards agriculture.
 The Southeast region is the richest and
most densely populated. It has country's
two largest cities São Paulo and Rio de
Janeiro.
 The South region is the wealthiest by GDP
per capita.

11. Main cities
 São Paulo
◦ largest and richest city of Brazil.
◦ economic center of Brazil
◦ 3 airports
◦ 61 km of metro rail, with 4 lines in operation & 55 stations
 Brasília
◦ capital of Brazil
◦ located in the central part of the country.
◦ seat of the federal government.
◦ 1 airport
◦ Metro system available
 Rio de Janeiro
◦ is the second major city of Brazil, behind São Paulo.
◦ It was Brazil's capital until 1960, when Brasília took its place.
◦ 5 airports
◦ two subway metro lines
◦ several commuter rail lines
◦ Port of Rio de Janeiro is visited by cruise boats, which travel along the Brazilian coast

12. Population distribution profile
 In 2007
◦ GDP at PPP: 1829.0 US$ bn
◦ Brazil GDP grew more than 5 Percent in
2007
◦ Population : 189.3m
◦ Per Capita Income (UD$ at PPP) : 9,662

13. Exports & Imports of Brazil
 In 2007
◦ Exports to world : 175.5 BUSD
◦ Imports from world : 162.3 BUSD

14. Major Exports & Imports of Brazil

15. Taiwan Transportation
The Taiwan Transportation includes all the modes of
conveyance facilities. Road, rail, air and water, all them add up to
make the Taiwan Transportation complete.
The western region of Taiwan has the most developed
transportation system as it is the area that is most populated in
Taiwan. This region has the biggest chain of roadways and
railways.
The roads are highly developed and are well connected with
each other. The transportation in Taiwan include the following
sectors:
 Roadways
 Huge network of railways
 Major harbors and shipping lanes
 Airways

16. Taiwan Transportation
Roadways in Taiwan
 It include both the national and regional highways. It also includes the urban roads
that are interconnected with each other and is extended to the farthest corners of
the region.
 National Highways are freeways
 The construction of the national highways began in 1971 and its design is heavily
based on the American interstate highway system.
 There are 10 national highways as of 2006.
 To improve the highway service quality of Taiwan, the National Expressway
Engineering Bureau has been continuously pushing forward with the Taiwan’s
Expressway Network Project
Total length: 38,197 km (2005)
 National highway: 901 km
 Provincial highway: 4,680 km
 Highways: 20,947 km (including 872 km of freeways)
 Urban roads: 16,395, km

17. Taiwan Transportation
Huge network of railways
◦ The railways have the biggest chain in Taiwan. It include the metro rail,
the light rail, the high speed rail and the general rail.
◦ The rail also connects Taiwan with the other regions of the country.
The railway Taiwan is administered by the Taiwan Railway
Administration.
◦ Taiwan has an extremely extensive network of railways (1496 km as of
2003).
◦ One of the nation’s major transportation policies is the development of
Mass Rapid Transit (MRT) systems for metropolitan areas.

18. Taiwan Transportation
Major Harbors and shipping lanes
As Taiwan is surrounded by sea from all the sides, sea
transportation in Taiwan covers a major part of the Taiwan
Transportation. The marine ships and the local ferries comprise the
sea .
There are currently seven international commercial ports in
the Taiwan area, including Keelung, Kaohsiung, Hualien, Taichung,
Suao, Anping, and Taipei, play very important roles in economic
development.
Kaohsiung Harbor is Taiwan’s leading international
commercial port, and also the sixth largest container port in the
world, handles the container throughput of 9.77 million TEU in
2006, with an increase of 3.2% over the previous year,

19. Taiwan Transportation
Airways
The airways in Taiwan are controlled by the China Airlines.
Eighteen major airports and the heliports comprise the airline in
Taiwan.
Several number of runways and landing grounds provide the
facility of take off and landing for both the domestic and
international flights
 The two international airports in Taiwan are CKS International
Airport near Taipei city in the north and Kaohsiung International
Airport in the south.
 In 2006, the entire passenger volume of civil air transportation
totaled 43.73 million, a decrease of 1.2% compared to 2005.
 Both the international (including transit) and the domestic
passenger traffic increased by 5.6% and decreased by 10.0% to
26.36 million and 17.36 million respectively, while the cargo
volume (freight and mail) totaled 1.81 million tons, a decrease of
0.5%.

20. Transportation Brazil
The transportation facility in Brazil has been developed and modern
throughout her nascent stage.
All the cities are connected to each other through roadways,
highways, rail route and air transport. Being a significant country of the
Latin America it is well connected to the rest of the world by air
transportation.
Roadways
 The road transportation in Brazil is frequently used by the local residents
as well the tourists who visit this country. Bus and cars are ample, easy to
rely on and are the best means of road transportation in Brazil.
 The buses have a specific route which they follow regularly; however, the
taxis and hired cars can be flagged down at any place
 Total area : 1,751,868 km
Paved: 96,353 km
Unpaved: 1,655,515 km (2006)

21. Transportation Brazil
Railways
Some of the cities of Brazil are blessed with subways or metro
rails, besides the normal rail transport.
The rail transportation in Brazil is the best in its capital city.
There are several trains, connecting different cities within the
country. Fares in the metro rail are quite reasonable and
affordable by people of all strata.
Even on weekends the metro rail of Brazil caters service to
the travelers. The stoppages are made in such a way that the
tourist locations are well connected to each.
The privatization of the country's entire freight railway
network between 1996 and 1999 resulted in substantial
improvements in the rail infrastructure and rolling stock, as well as
gains in efficiency, output, and the quality of services

22. Rail Road network in Brazil

23. Transportation Brazil
Air
 Apart from the rail and road transportation, the air transportation in
Brazil is also praiseworthy. The Presidente Juscelino Kubitschek
International Airport, located in the capital city of Brazil, is the principle
airport of the country.
 A large number of domestic and international airlines as well as cargo
flights operate from these airports of Brazil. Ample facilities are offered by
the air transportation department of Brazil.
 Given the size of the country, air travel plays an important role in long-
distance passenger travel, transport of commodities with a high value-to
weight ratio, and the conveyance of mail.
 Brazil has 26 principal airports (13 of which handle international flights).
Regarding airlines, Brazil has six major international, 10 domestic
passenger, and three all cargo

24. Transportation Brazil
Roadways
 The road transportation in Brazil is frequently used by the local
residents as well the tourists who visit this country.
 Bus and cars are ample, easy to rely on and are the best means of
road transportation in Brazil.
 The buses have a specific route which they follow regularly;
however, the taxis and hired cars can be flagged down at any
place.
 The Brazalian national network of highways is the fourth largest
of the world. It is almost 2 million km long, with approximately
200,000 km of them paved, as of 2005.
 The name given to highway in Brazil is “Rodovia”

25. Principle Carriers/ Companies
China Airlines Cargo: By air, land and sea
 China Airlines delivers cargo to destinations around the world.
Ranked among the world's top 10 air cargo companies, China
Airlines boasts a fleet of modern freighters, supplemented by the
cargo capacity of its passenger aircraft, allowing it to command a
highly competitive position in the marketplace.
 China Airlines' cargo network spans air, land and sea through
agreements with more than 100 air and marine shipping
companies.
 It has large-scale warehouses in New York, Los Angeles and
Luxembourg connected to a trucking network covering the US and
Europe.
 FLEET: 68 aircraft, including 48 Passenger Jets/20 Freighters (Feb
29,2008)
 Total number of employees: 9,916
Employees in Taiwan: 8,208
Employees stationed overseas: 1,708

26. Principle Carriers/ Companies
EVA Airlines
 EVA Airways has daily complete-frequency connections to major
Asian cities.
 Linked through our wide network to destinations in Europe, the
United States and Australia, EVA Express delivers cargo with
minimal transfer and transit handling even more quickly than in
the past, not only throughout the Asia Pacific region, but also
continent to continent.
 EVA Air Cargo stands out in the air freight business for giving
shippers the tightest frequency from Asia to both the West and
East Coasts of the U.S.
 EVA Air operates one of the world's youngest fleets. We use our
nine brand new, state-of-the-art MD-11 and five B747-400
freighters to serve major air cargo markets worldwide

27. Principle Carriers/ Companies
Cosco Services
 Cosco started its container activities in Brazil in 1993. But, in a few
years it developed important services that supplement its main
activity (ocean-freight) and help to build its image of deep
reliability and respect to the market .
 At any point of the transport operation, Cosco's tech-nicians can
track and localize your container to inform: its exact location, if
it's on the ship or already unloaded, if the transshipment was
already done, transit times, etc.
 This is only possible because Cosco has invested in the
development of a cargo tracking system (T-com System) that
interconnects all brokers involved in the process.
 Through Cosco-Trans Interna-tional Ltda., another company
affiliated to the Group, Cosco offers its customers the best
operation planning and coordination service for ground
transportation between the port of Santos and the main Brazilian
capitals, or other localities in the interior

28. Product Profile
 Considering a Student Laptop
◦ Height: 1.2 inches,
◦ Width: 12.4 inches
◦ Depth 10.1 inches
◦ 14.4 – inch Display
 Thin-and-light Laptops
◦ weighing typically between 4.6 and 6 lb (1.8–2.7 kg)
 Mainstream Laptops
◦ weighing between 5 and 7 lb (2.3–3.2 kg)
 built-in keyboard, touchpad, pointing stick for
input, though an external keyboard or mouse can
also be attached.

29. Packaging a computer
1. Use a heavy corrugated cardboard box with
extra space for protective material.
2. weight capacity of the box should exceed
computer and accessories.
3. Remove cover from the outside of the box.
4. Wrap computer in bubble wrap or other
cushioning material, covering all sides. Seal with
tape.
5. Wrap mouse, manuals, AC adaptor and other
accessories separately.
6. Fill open space in box with bubble wrap,
polystyrene "peanuts" or "noodles," crumpled
newspaper or other cushioning material.

30. Packaging a computer
1. Make sure the computer can't move inside
the box.
2. Put a duplicate shipping label with contact
details inside box.
3. Seal box with pressure-sensitive reinforced
tape, water-activated paper tape.
4. Cover seals with extra tape.
5. Mark complete return and delivery
addresses on a single label.
6. Mark "FRAGILE" on all sides of the box.

31. Bar Codes & RFID
 Bar Codes
◦ Easy identification
◦ More established
◦ Less costly
◦ Easy to use and implement
 RFID
◦ Better traceability
◦ Mainly used in assembling and tracking
◦ Costly and more sound system
◦ Can hold more data

32. HS Codes for Computers
 991599 Computer Programming Services
 991799 Computer Integrated Systems
Design
 992099 Computer Facilities Management
 992199 Computer Rental & Leasing
 992299 Computer Maintenance & Repair

33. Suitable modes of transportation
 Air transport
 Ship transport
 Rail transport
 Road transport

34. Popular Computer Brands
 Acer in Taiwan
 Other countires
◦ Lenovo, China
◦ Dell, US
◦ Sony, Japan
◦ Toshiba, Japan
◦ HP, US

35. Major city for Import of
Laptops
 São Paulo
◦ economic center of Brazil
◦ Most populous in Brazil and fifth in the world
by population density
◦ Largest consumer market of the state in the
country.
◦ 19th richest city of the world
◦ The per capita income for the city was US$
14139.01 (2005).
◦ Well developed air, rail, road network.

36. Ports
 Brazil has thirty-six deep-water ports.
 The largest ones are Belém, Fortaleza, Ilhéus, Imbituba,
Manaus, Paranaguá, Porto Alegre, Recife, Rio de Janeiro, Rio
Grande, Salvador, Santos, and Vitória.
 Santos, São Paulo State
◦ Brazil's major port, in terms of the value of exports and imports
◦ Latin America's largest port.
◦ Located 72 km south of São Paulo,
◦ Handles daily average of 50,000 tons cargo.
 Ports of Rio de Janeiro and Vitória.
◦ Although all three ports handle some trade with other Latin
American countries, they traditionally have handled more trade
with Europe and the US, and the east Asian presence is
increasing.

37. Transportation Flow
 Destination Port: Santos
 Departing Port: Kaohsiung, one of five
new Free Trade Zones designed to serve
International Logistics
 Mode of Transport: Sea
 Logistics Company: Fedex

38. Transportation Flow

39. Transportation till Day 5

40. Transportation till Day 10

41. Transportation till Day 17

42. Reasons for choosing Fedex
 Offices in Santos, Brazil and Kaohsiung,
Taiwan
 Guaranteed Delivery from Fedex and
listed on Taiwan government website as a
preferred company
 Dell uses the same company for logistics
so there is a point of reference

43. Documentation Required
 Proforma Invoice
 Letter of Credit
 Commercial Invoice
 Certificate of Origin
 Packing List
 Insurance

44. Charges
 Kaohsiung handling charges NT $40.90
 Warehouse Handling: NT $84.20
 5-Ton Forklift: NT $792 per hour
 Labor charges: NT $653 per worker per
hour
 Freight Charges: NT $14 a mile
 Distance: Approx 6000 miles
 Journey Time: 17 days