Summer School 2014
Distribution and Supply Chain Ing. R贸bert Reh谩k, PhD. robert.rehak@euba.sk
Understanding of the distribution
science profession sector of the economy of the country part of the marketing mix last access, our business approach group of people Legislation: distribution includes all activities that facilitate the transition of the physical and the right to dispose of the products from one entity to another
Missions of Distribution ď Ž
ď Ž
1-creation of value, which is in the form of added value, thus distribution becomes a creator of performance, service ... 2-balancing of supply and demand in the economy
Character flow of goods and segregation of duties area of real goods area of financial flow area of communication and informations Segregation: Merchandising and operating
Supply chain ď Ž
Set of institutions, which are designed to ensure the availability of goods and services to a consumer acceptable economic and environmental conditions.
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Missions to Supply chain
Market Research Sales Promotion Collect contacts Transforming range Negotiation Logistics (transport, storage ...) Financing risk taking
Institutions in Supply chain - typology We can do that whit own distribution authorities or outsourcing. -Wholesale
and retail (trade institutions)
-Mediators -Helpers
(whit logistic, merchandising and operating)
How goes cooperation in supply chain Conventional SC WHOLESALE - purchase - storage - sales support - sale - deliveries - funding
Integrated SC manufacturer wholesale retail financial institutions marketing agency
RETAIL - purchase - storage - sales support - Place management - Category Management - funding - deliveries
-planning -designing SC -purchase -sale -CM -PM -pricing -promotion -sales support -funding -storage
Consumer
MANUFACTURER - Designing SC - production - marking - pricing - Promotion - sale
Special form Franshising ď Ž
Provider transmits to the recipient their products, marketing strategies or services using a common brand, a common symbol, name, equipment or retail space.(questions to Jozef OrgonĂĄĹĄ :)
In the final
Strategies of distribution
Intensive (mass) selective Exclusive
Intensive distribution
Products of daily demand Low unit price Mostly short shelf life Short shopping time Low requirements for conditions of purchase Small technical complexity of the product Low level requirements after sale services Wide range of users of the product Most stores range
Distribution used in retail stores (category management of food)
Selective distribution
Products and occasional Long-term demand Relatively high price with a higher proportion of personal selling Professional sales care Stores with a suitable environment
Distribution used in retail stores (in general specialized stores)
Exclusive distribution
Restrictive choice of mediator The product is sold to one or a limited number of intermediaries - exclusive Products luxurious items, branded products, nonsubstitutive Comprehensive sales and after sales services of high quality Specialized exhibition, high level arrangement and design shops Products often purchased on the representation
Personal sales
What is necessary to solve
Purchasing Supply Storage (if it is necessary) Sales Transport
All with minimize of costs and maximize of effect
Purchasing Questions: where
to buy how to transport, how to order, how to pack and create handling units, how to supply, how to manage the movement of goods and How much it costs
Other words
ensure ... the right products, raw materials, services ... ... right quality, ... in the right quantity, ... in the right place, ... at the right time, ... from the right supplier, and at the right price ...
Supply These are activities in which the enterprise ensures the supply of various inputs.
Basic problem is what kind of supplies we need to keep and if it is necessary to keep supplies and what kind of supplies .
Storage (if it is necessary)
Why storage? Because we need time.
For storage we need warehose system
For non-storage system we need Just in Time model
Sales – missions
Register bids from customers and orders received Register contracts with suppliers and customers Assess the requirements for the production of registered contracts Marketing plan Stock status register (receipt, delivery notes, closing ..) Invoice form based on contracts and delivery notes, orders Form output documents To price, to assess individual costs according to current technical preparation of production documentation Analysis and statistics of orders, sales, inventory ..
Transport Overcoming the space or change of location (movement) of goods transported by means of vehicles. We know: - Road transport, - Air transport, - Rail, - Waterways, - Piped, - Space transportation.
Specifications of distribution between Mexico and Slovakia (EU)
From 2013, the Slovak Republic had the embassy in Mexico City. Mexico does not have to Slovakia embassy or consulate. (in Vienna) Diverse language Same basic religion Valid passport and tourist card you receive upon arrival at the airport. Visas are required only to stay longer than 90 days Electricity 110 V, 60Hz – 220 V, 65Hz The problem is mainly with the import and export of food. When transporting more than 10 000 in cash is required to declare this amount to the border authorities . Distance cca 8 500 km.
Specifications of distribution between Mexico and Slovakia (EU) ď Ž
ď Ž
ď Ž
Balance of trade between the Slovak Republic and the United Mexican States last year was positive and amounted to almost 19 million U.S. dollars, while imports amounted to $ 12.6 million. Compared with the previous year, imports increased by 130 percent. Most are from Slovakia exported machinery and transport equipment. Free Trade Agreement between Mexico and the EU. This Agreement entered into force on 1 July 2000 and introduced to all goods from Union benefits, such as phasing out of import duties by 2007, a significant reduction in the import surcharge and removal of additional import surcharge. A very important factor remains the potential export of Slovak companies, affordability and competitiveness, which should be considered just particularly high transport costs. Due to the relatively high transport costs need to be chosen to export the commodity to Mexico with a higher share of value added. It should also be noted that in Mexico operate certain lobbies that can create legal obstacles to all imports from abroad.
Specifications of distribution between Mexico and Slovakia (EU)
In Mexico, are up to all kinds of rail transport is very well developed. Driving license purchased on the appropriate Mexican authorities. Transportation in Mexico City during the working week is very thick, the streets are full of parked cars, which greatly restricts traffic. Mexican drivers often ignore traffic laws, mostly governed by well established customary rules.. Most important harbors: Altamira, Tampico, Tuxpan, Veracruz, Coatzacoalcos, Campache, Dos Bocas, Progreso, Puerto Juárez. Slovak Embassy in Mexico, Julio Verne no. 35, Colonia Polanco, 11560 Mexico (Mexico D. F.)
Import duty & taxes when importing into Mexico
Import duty and taxes are due when importing goods into Mexico whether by a private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. However, the duties of some products can be charged based on a unit of measure. In addition to duty, imports are also subject to sales tax, customs processing fee (DTA), and in some cases to excise. Duty rates in Mexico vary from 0% to 140.4%, with the average duty rate at 13.97%. Some products can be imported free of duty (e.g. laptops, and other electronic products). Mexico has signed free trade agreements with a number of countries. To be entitled to preferential tariff treatment, a good must meet the "originating" criteria as set out on the Rules of Origin of individual FTAs. A certificate of origin is required upon importation for preferential duty rates to apply. NB: Imports by post or courier do not automatically benefit from preferential tariff treatment as they clear customs through a simplified process. For preferential tariff treatment to apply a customs broker has to be assigned, and the import has to be cleared throught the regular customs clearance process. VAT is levied on imports at a standard rate of 16% calculated on the sum of the CIF value, duty, and DTA. Some products can be imported free of VAT. Imports with a FOB value, i.e. product value, of up to US$50 are exempt of duty and VAT, however they are still subject to DTA. DTA or Customs Processing Fee is applied to all imports at a rate of 0.08% of the sum of the CIF value and duty. Excise is applicable to alcohol and tobacco products at rates between 25% and 160% on the sum of the CIF value and duty.
Possible routes to Slovakia
There are four main highways D1 to D4 and eight express ways R1 to R8. Most of them are still in the planning phase. The D1 motorway connects Bratislava to Trnava, Nitra, Trenčín, Žilina and beyond, while the D2 motorway connects it to Prague, Brno andBudapest in the north-south direction. The D4 motorway (an outer bypass), which would ease the pressure on Bratislava's highway system, is mostly at the planning stage. The A6 motorway to Vienna connects Slovakia directly to the Austrian motorway system and was opened on 19 November 2007. The Port of Bratislava is one of the two international river ports in Slovakia. The port connects Bratislava to international boat traffic, especially the interconnection from the North Sea (Hamburg, Amsterdam, Rotterdam, Gdyňa, Gdaňsk, Zeebruge, Southampton) to the Black Sea (Constatna Romania, Dernice) via the Rhine-Main-Danube Canal. Other variant is route to Mediterranean Sea (Trieste, Livorno, Athens, Thessaloniki, Barcelona). Additionally, tourist lines operate from Bratislava's passenger port, including routes to Devín, Vienna and elsewhere. The rail transport is in the Slovakia on high level.
Import duty & taxes when importing into Slovakia
Import duty and taxes are due when importing goods into Slovakia from outside of the EU whether by a private individual or a commercial entity. The import duty and taxes payable are calculated on the CIF value, i.e. the sum of the value of the imported goods and the cost of shipping and insurance. The duty rates applied to imports into Slovakia typically range between 0% (for example books) and 17% (for example Wellington Boots). Some products, such as Laptops, Mobile Phones, Digital cameras and Video Game consoles, are duty free. Certain goods may be subject to additional duties depending on the country of manufacture, for example Bicycles made in China carry an additional (anti dumping) duty of 48.5%. The standard VAT rate for importing items into Slovakia is 20%, with certain products, for example books, attracting VAT at the reduced rate of 10%. VAT is calculated on the value of the goods, plus the international shipping costs and insurance, plus any import duty due. For imports into Slovakia, there are minimum thresholds below which duty and VAT are waived. Duty is not charged if: the FOB value, i.e. the value of the goods excluding shipping and insurance cost, does not exceed €150 VAT is not charged if: the FOB value, i.e. the value of the goods excluding shipping and insurance cost, does not exceed €22, Excise duty is payable on for example tobacco and alcohol. Additional customs fees can be charged to cover the expense of performing any required examinations, verification and or testing of the imported goods.
Thanks for your attention