Re: FWD: Documenting the Ordering Process

Subject: Re: FWD: Documenting the Ordering Process
From: David Neeley <dbneeley -at- oddpost -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Sun, 2 Nov 2003 13:12:56 -0800 (PST)

For the benefit of "anonymous" there are several possible factors in the example given:

1) If the company is smart, they can use a transshipment warehouse in a duty-free zone. Products shipped in from another country and then exported are subject to *no* U.S. duty. Items being repatriated to the country of origin are also subject to *no* customs duty there, either.

2) If you have had many dealings with technical support departments, you know that there can be many headaches coming from under-spec network cables. By supplying cables that meet the original specifications, the chance of problems are reduced...and a technical support issue is *MUCH* more costly than ordering a cable with the appropriate specs. Remember: not just in the U.S. do people buy from the lowest bidder--and quality control is often miserable on the cheapest items.

3) Shipping charges *into* the system on a cable are miniscule, since they are shipped in bulk. Also, for large customers, such items are generally included in larger shipments--and the added freight, if any, is inconsequential.

The only thing left, therefore, might be simply to consider the cost of entry of the item into inventory (usually done in bulk and not "per piece" for cables IIRC), and to process the order to supply a replacement.

To me, while it may be that this system is unnecessarily wasteful, it seems that "anonymous" may simply be unaware of the realities of international business, and indeed of the "big picture" that sometimes is important but beyond the purview of many individuals in specialized roles.

We simply don't have the information to tell from this example.




"True story. My company supplies a complete system, including COTS
hardware and our own software, to a multi-billion-dollar corporation
that ships its products around the world. We tried to convince the
corporation (which has customers around the world) not to order simple
items such as Ethernet cables as official spare parts, since it would
be cheaper for the customers to purchase their own. No dice. So the
following scenario may soon come to pass: ...



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