Supply Chain Management Plan

Supply Chain Management Plan for Safeways Airways

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Supply Chain Management Plan for Safeways Airways

Safeways Airways Company intends to set up a wholly owned subsidiary in Australia. Australia is popular for having favorable environment that supports business activities. However, a company must comply with the country’s import and export regulations. For successful importation, a company must comply with the government regulations including duty taxes as well as clearance by the country’s Department of Home Affairs. A business must also obtain licensing and import permits. For export activities, a business must have an export declaration form and a prohibited and restricted exports form from the Australian Border Force (Australian Government, 2018).

The country also has an effective transport network comprising of more than 874,000 kilometers of road, at least 33,000 kilometers of heavy rail and 291 kilometers of light rail. Australia has 40 airports, including 10 international airports. Also it has 37 ports with annual throughput of at least 1 billion dollars (DIRD, 2016). However, the recent political upheaval that led to the election of Scott Morrison and brewing turmoil in the ruling coalition may be bad for business. Scott (2018) indicates that Barnaby Joyce planned to challenge for top position in the government. Apart from the business environment, it is important to consider the logistics and supply chain management factors associated with setting up a subsidiary in Australia. Some of the hot issues worth taking into consideration are inventory and transport management, sourcing and marketing in the supply chain, green logistics and supply chain, as well as warehousing.

Based on information search, Safeways should set up a subsidiary in Sydney. This is due to the fact that it the country’s only global city. City of Sydney (2016) indicates that apart from being the leading knowledge based economy in the country, the City of Sydney generates at least $108 billion each year. This accounts for more than 7% of the country’s economy. It also provides more than 430,000 jobs across different skills levels that offer opportunities for different people.

Supply Chain Management Plan for Safeways Airways Company

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