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Contemporary Logistics: Nuernberg Augsburg Maschinenwerke

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N. A.M might be useful in giving the customers regular updates concerning the shipment process. Maybe N. A.M could email the customers important progress points such as the shipment have set off for Hamburg from Prague; the shipment from Prague has now arrived in Hamburg. Since successful performance on the initial shipment is very important in getting other future businesses, N.A. M should consider getting one of their managers to accompany the shipment. It is also important to note that N. A.M works closely with Hapag-Lloyd AG in the transoceanic shipping business. Hapagad-Lloyd is in a position to offer a cheap and flexible commodity cost.

In fact, through its alliance with NYK, P& O Nedlloyd, OOCL, and MISC, for the ocean transport of buses, one vessel could carry up to one hundred and twenty-five buses as deck cargo. The Brazilian buyer wants the buses “ delivered” at Santos. Weiss looks up the International Chamber of Commerce’ s year 2000 Incoterms and finds two categories of “ delivered” at a receiving port. Considering the importance of the initial shipment as earlier stated, the more the control the Nuernberg Augsburg Maschinenwerke (N. A.M. ) has over the shipment process, the better.

From the two options, Delivered Ex Quay (DEQ) option is more costly, however, from a deeper perspective DEQ offers N. A.M an opportunity to have a bit of control into the shipment process. Moreover, since N. A.M takes on the additional costs that are associated with DEQ willingly, the customers would always view this from a positive perspective. Thus, the Brazilian Buyer should settle on DEQ since N. A.M would pay some of the costs associated with the shipment. When considering settling on the best option regarding the shipment to Santos, one would have to realize that the Brazilian authorities are somehow feeling threatened politically.

The political heat is due to the fact that they are behind time in implementing their transportation plan and therefore need to prove to the public that the new programs were on track.

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