Part V - Project - Network Analysis
Fig. 2. The scheme for a project network analysis
Insurance Company |
Consignor |
Consignor’s Bank |
Export Country Customs |
Consignor’s Forwarder |
Import Country Customs |
Consignee’s Bank |
Consignee |
Consumer |
Event description (for Fig. 2):
Sending offer to the potential Consignee
Return of counter offer from Consignee to Consignor
Negotiations, signing and coming into force of the consignation agreement
Notification that goods were made available by consignor for shipment
Consignor concludes an Insurance at its insurance company for the transport of coffee beans
Insurance company notifies the Consignor that it has a good deal available.
Consignor pays Insurance Premium to its bank.
Insurance Company receives payment from the Consignor’s bank and the insurance is covered.
Consignor receives notice from its Bank that the Insurance Premium is paid so the Insurance is covered.
Rendering an invoice by Consignee for supplying warehouse premises, managing the warehouse and delivery the customers their goods.
Order for the Consignee’s bank about transaction of revenue with 10% commission as a reward for Consignor from Consignee.
Transaction to the Consignor Bank money according to the invoice, not including the reward of Consignee
Notification from Consignor’s Bank about collection of payments on its account
Consignor will complete the order and start the delivery with own truck transport (referred as Consignor’s Forwarder)
Consignor’s Forwarder will start shipping the goods
Consignor’s Forwarder declares goods at Brazil Export Custom Office at the border.
Brazilian Export Customs checks CMR form and let the Consignor’s forwarder cross the Brazilian border.
Brazilian Export Customs checks CMR form and let the Consignors forwarder cross the Russian border.
Consignee receives goods from Consignor’s Forwarder.
Consignee will assemble the goods at his warehouse and start to sell goods.
Notification from Consignee about giving out from the stock and the actual stock of goods in the Consignor’s warehouses
The consumer will buy the assembled goods from the Consignee
The Consignee will receive the money from its consumers
When the Consignee has reached the amount of goods where a new order is necessary he will e-mail the Consignor
The Consignor receives the e-mail and accepts it.
Consignee will send the Consignor a monthly sales and marketing report
Consignor will receive the monthly sales and marketing report”.
Continuation/ renew of the agreement can happen in case both parties agree on this in written form 1 month in advance before the termination of the contract, but not later than 20 days before the end of the year.
Actions 19 and 21 are actions of higher risk.
Action 19, “Consignee receives goods from Consignor Forwarder”, is of higher risk for the Consignee because it also the first time that the Consignee cooperates with this Consignor.
In addition action 21 is also risky because how will the Consignee know if he is able to sell the garden furniture and if the Italian people are interested at all in these goods. The distributor has bought all the goods and he, himself is responsible for selling the goods and for making a nice amount of profit which mainly depends on the customers who will come and buy its products.
We consider that the most risky actions for us are those connected with transportations because in this case we are responsible for risks and costs.