Managing business logistics and negotiations

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Table of Contents
Introduction......................................................................................................................................3

Market research...............................................................................................................................3

Import regulations............................................................................................................................4

Evaluation of manufacturers............................................................................................................5

Evaluation of logistics...................................................................................................................10

Findings.........................................................................................................................................11

Recommendations..........................................................................................................................12

Conclusion.....................................................................................................................................13

References......................................................................................................................................14

Appendices....................................................................................................................................16

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Introduction
Negotiation is the mechanism by which contract experts come up with favorable conditions for a
new supplier agreement. When a contract is extended, this can include negotiating different
terms with a current supplier or proposing terms with a brand new provider. Negotiations are
commonly used to negotiate the most reasonable price and payment conditions, as well as
distribution and manufacturing cost, quality requirements, and other factors. Instead of focusing
solely on obtaining the lowest possible price, negotiations should seek the best choice for both
the supplier and the customer, as this will support fostering positive connections with long-term
manufacturers (Murray, 2018). SafeMedics is a distribution company based in the United
Kingdom that specializes in delivering different forms of personal protective equipment to UK
hospitals. It wants to expand its current product line by importing anti-fog medical face shields
from China and the United States. This report is focused on determining if this will be helpful to
the company, beginning with an estimate for 10 20ft containers of anti-fog medical face shields
from China and an additional 5 20ft containers from the US.

Market research
The coronavirus epidemic has catapulted the medical face shield industry from obscurity to
public status. Medical face shields were also being used to provide first-line protection against
other devastating outbreaks including Ebola, flu, SARS, and Zika before the outbreak. As the
epidemic constricts the entire world, the development of medical face shields is only projected to
increase at a rapid pace. The pandemic is here to stay for a long time, with no signs of a cure or
vaccine on the way (Jefferson et al, 2020). As a result, wearing face masks would become the
new standard, hastening the creation of medical face shields.

The COVID-19 outbreak has had a strong effect on the anti-fog medical face shield market in the
United Kingdom. This is primarily due to the rising demand for face masks, which prevent or
delay the spread of life-threatening COVID-19 infections. Against the spread of SARS-CoV-2,
anti-fog medical face shields are being used as a public and personal health control measure.
Their usage is intended to protect individuals from infection and to act as source control to
prevent the virus from spreading in a group or healthcare environment. Furthermore, the Covid-
19 epidemic has altered the medical face shield market's frameworks. Even before the epidemic,
the market was in a state of linear transformation. In the last two months, however, it has

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increased by more than 100%. The pandemic has boosted demand for medical face shields to the
point that even inexperienced players are considering entering the market (Huang et al, 2021). As
a result of the upward transformation, medical face shields will generate 10X revenue from both
experienced and unconventional competitors in the following days.

As the percentage of situations of covid-19 rises, it's more critical than ever for healthcare
personnel and other public employees to stay healthy in order to save more lives. Public health
organizations have advised the use of face masks and other personal protective equipment (PPE).
Causing delays in the production of personal protective equipment (PPE) for medical
professionals in the United Kingdom, the government has proposed that manufacturing be
increased by 40% to meet consumer demand. The face protector helps the face mask last longer.
As droplets come at an individual from a range of 18 inches, simulation experiments with the use
of a face shield show a 96 percent reduction in infection. The face shield also keeps the
individual from constantly touching his or her face, allowing for communicative physical contact
among medical professionals and extending the mask's existence. The value-tier face shield
market in the United Kingdom is expected to expand rapidly (Singh et al, 2021). The
requirement for high and moderate level face shield is likewise forecast to rise during the
forecast era, owing to the presence of major manufacturing and other end-user industries. Anti-
fog medical face shields are expected to be more common than other types.

Import regulations
Both medical personnel and the general public have expressed a need for anti-fog face shields as
a result of the coronavirus disease outbreak. If anti-fog face shields are “intended for use in the
cure, mitigation, treatment, or prevention of disease,” they come under the scope of a “medical
device” under Section 201(h) of the Federal Food, Drug, and Cosmetic Act and are supervised
by the Food and Drug Administration (FDA). Customs duty is calculated based on the current
market value of manufactured products as they arrive in the United Kingdom. Price, taxation,
shipping, and tariff will be included in import rates for anti-fog face shields from both the United
States and China, with a regular VAT of 20% applied to the total value. The customs duties are
usually paid either directly to HM Revenue and Customs or through a shipping company upon
delivery. The estimated value process is normally recognized as the standard price, but HM
Revenue and Customs (HMRC) retains the right to calculate a reasonable valuation for duty

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purposes if a preferential agreement has been formed between the overseas supplier and the
importer, or if an unrealistic value has been declared. The tariff is due when the products are
delivered, but existing suppliers can postpone payment for up to 30 days in total (van der Beek et
al, 2021).

The Chinese government enacted a new tariff policy on April 8, 2016, that relates to products
purchased through e-commerce as well as physical goods moving throughout the area. China's
alleged unfair trade policies have created a drive to compel the country to reform. Import duties
must also reach at the points of shipment, be authorized by US Federal Law Enforcement, and
duty fees must be charged in order to enter the US legally. Audit and transport of products are
the responsibility of the licensed importer. The seller, broker, or passport agent that is the
Registrar can apply the Goods Registration Documents to the Port Manager when the goods
arrive in the nation. Human medicines (including clinical trials), veterinary drugs, and
pharmaceutical machinery are all regulated by the European Union (Nyambok and Kastner,
2012). To formulate a meaningful legislative framework with the UK, the Chinese government
has introduced a range of rules in these sectors.

Evaluation of manufacturers
Several components can influence a company's decision on which manufacturers to use. To meet
SafeMedics' requirements, it's critical to choose the best manufacturers. To find suitable
manufacturers, two Chinese and two American manufacturers will be compared in terms of
quantity per container, pricing, delivery time, port of origin, quality level, branding, and
incoterms.

Manufacturers from China

Manufacturer Hubei Healthcare Protective Products Co.,

Ltd
Quantity per container When exporting, the manufacturer supplies
about 8,000 anti-fog face shields in a single
container.
Price For each face shield, they charge £10.
Delivery time Medical instruments are delivered from China
to the United Kingdom in 5 days using

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 waterways.
Port of origin There are 34 main ships in China, as well as
over 2,000 smaller terminals. The prior is a
port with views of the Yellow Sea (Bohai),
Taiwan River, Salt River, and South China
Sea (with the exception of the Mimi ports of
Shanghai, Nanjing, and Nantong). Many of
these ports are used by the organization to
transport goods.
Quality standards These custom masks can be used again and
again. These face shields are expensive, but
they are also robust, flexible, thin, and water-
resistant.
Branding The face shield's shielding layer is a robust
cable that can be modified to fit the size of the
face. With a large range of vision, the screen
is developed of anti-fog PET plastic. It is easy
to wear because of the brand logo or post, as
well as the soft and smooth curtains.
Incoterm In this manufacturer's case, the incoterm
defines the shipping responsibilities and the
legal distribution place. Packaging, fees, and
transportation obligations should all be
considered in international shipping contracts.
The customer is required to purchase freight
insurance under the general principles of
application of foreign trade terms (Zhang et
al, 2010).

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Manufacturer Greateagle safety products Co., Ltd.
Quantity per container This manufacturer sells about 9000 face
shields in a single container.
Price The cost of each face shield is £10.
Delivery time Importing from China to the United Kingdom
takes about 4 days.
Port of origin The major trade ports are Hong Kong Island
to the UK, Gingko, Jinzhou, Qinhuangdao,
and others; these routes are suitable for
shipping medical equipment.
Quality standards This manufacturer adheres to all of the ISO
guidelines for face shields and masks
proposed by the World Health Organization;
they utilize super plastics to cover the face,
and the headbands are both lightweight and
free of adverse reactions.
Branding PET is used to make the face mask. For a
better fit on the forehead, there's a flexible
pad and a secure thermoplastic cover. It is
simple to clean after use and also helps to
avoid vision loss. It is given to the
differentiation and modification of the
substance in complicated cases including the
eyes, nose, and mouth, in addition to the field
of vision.
Incoterm When shipping internationally, Incoterm
includes orders that demonstrate the
distribution of costs and price changes
between buyers and sellers. Incoterm is a
collection of global practices that specify the
terms of trade for international product sales
agreements, including preventing
commodities, restricting consumer goods,

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 barring services and products, avoiding
resources from assets, and hindering property
and products (Livingston, Desai and
Berkwits, 2020).

Manufacturers from the United States

Manufacturer Sanax protective products
Quantity per container This manufacturer sells approximately 11
thousand face shields in a container.
Price It is considerably less expensive than the
Chinese maker, at about £6 per face shield.
Delivery time Shipment from the United States to the
United Kingdom takes about four days.
Port of origin Each year, US ports handle more than 2
billion tons of freight, including import and
export cargo. One of the terminals being used
by the corporation to transport packages is the
Port of New York.
Quality standard They are still responsible for upholding brand
integrity by maintaining product consistency
as an operating company headquartered in the
United States. Sanax protective products have
chosen to adopt policies to preserve
competitiveness by constantly enhancing
production, quality control, branding, IT
processes, recruiting, and all other fields,
despite the fact that global producers and
brands demand higher quality.
Branding It is in a unique position to increase quality
and value by delivering effective products to
consumers and end-users at fair prices. Their
business model is focused on a well-
functioning and rewarding supply chain.

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Incoterm It uses a one-of-a-kind business model
focused on real-time collaborations to help
build winning goods, thus contributing to the
Corporation's and consumers' shared success
(Ahmed et al, 2020).

Manufacturer The randon group

Quantity per container Each container contains about 14000 face
shields.
Price They charge approximately £11 for each face
shield.
Delivery time It includes two days to travel by water from
the northern port.
Port of origin South Louisiana Port, Houston Port, New
York Port, and New Jersey are the ports of
origin for medical supplies.
Quality standard PET material is used to make the face shields.
To keep the forehead secure, the
polypropylene cushion can be adjusted with a
protective seal. It can distinguish particles in
heavier areas including the eyes, nose, and
mouth, in addition to having a large field of
view. It's great to handle together.
Branding As a market leader, this
manufacturer successfully delivers over 600
products. Buyers have high regard for this
brand. It has developed an important global
brand and has representative offices in 65
countries/regions, unlike other diverse and
independent pharmaceutical and healthcare
product manufacturers.
Incoterm This company has one of the most
comprehensive product lines, making it the

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 leading producer in the globe with enough
producers to fulfill the demands of most
suppliers. The consumer creates a sales route
in DAP to transport the products. The asset is
shipped to the purchaser from the transaction
when it arrives at its destination (Bukauskas
et al, 2021).

Evaluation of logistics
A potential logistics provider must be knowledgeable in the major markets that SafeMedics
requirements. They should also have a range of skills that can meet both immediate and long-
term needs. While finding the right logistics service provider can be difficult, SafeMedics can
make the process quick and easy by keeping a few things in mind. Form of transportation, supply
transit time, and expenses are some of the factors that will be considered when selecting logistics
to meet SafeMedics' requirements (Sharma, Gupta and Jha, 2020).

Manufacturer carriers Mode of transport Supply time Logistics costs (per

case)
Nippon Express Shipping 1 month 1020 GBP
Group (China)
KG Logistics (China) Shipping 1 month 10 days 1150 GBP
BLG logistics group Shipping 25 days $4000 USD
(United States)
DRT International Air Freight 5-7 days $2274 USD
(United States)
Logistics management begins with the consideration of SafeMedics needs and continues by
product deliveries in accordance with all aspects of results, including input arrangement,
procurement of anti-fog face shields, and product physical delivery. Logistic companies are
essential to SafeMedics because they will be in charge of supplying anti-fog face shields from
China and the United States. Logistic companies from China include Nippon Express Group and
KG Logistics, while logistic companies from the United States include BLG Logistics Group and
DRT International. As a procurement officer, you must understand the importance of selecting a
logistic company because a suitable and dependable company ensures timely deliveries and

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effective work efficiency. SafeMedics will contact the manufacturer and establish a connection
with Nippon Express Group and KG logistics to complete the purchasing process. SafeMedics
has requested shipment for all of the supplies from China and will use air freight and shipping as
modes of transportation from the United States. Only one air freight company, DRT
International, is contacted because air freight is said to be 4-6 times more expensive than
shipping. SafeMedics opted to send three shipments instead of one air freight shipment to save
money. Airfreight is likewise needed because it delivers goods 5-6 times faster than standard
shipping. In the end, it will aid in the timely filing of inventory and fulfillment of orders. Refer to
the table above for more information on the supply period. The logistic costs for anti-fog face
shields vary, according to the above table. Delivery from China's freight forwarder Nippon
Express Group and KG logistics costs 1020 GBP and 1150 GBP, respectively. Furthermore,
utilizing air freight and exporting from the United States costs $4400 USD and $2274 USD,
respectively (Kain and Verma, 2018). We may also compare the cost differences between
shipping and air freight using the graph; air freight is two times more expensive than shipping.
As a result, shipping is often chosen to save money.

Findings
Activity China USA Russia Spain
Delivery time 1 month 5-7 days 13 Days 4 days (Shipment)
(Shipment) (Airfreight) (Shipment)
Price The price per The price per The price per The price per
shield is £7 - shield is £8-12. shield is £12-£17. shield is £9-14.
£11.
Logistic cost 1020 GBP per $4000 USD £793 per £810 per
case ( Air transport) container container
Quality Medium to Medium Low to medium High
high
Comparison with European countries

When purchasing anti-fog medical face shields, comparisons were made about cost, quality,
price, and delivery time. Spain and Russia have been chosen as European manufacturers to be
compared to China and the United States. China is found to be superior in some areas, while the
United States is superior in others. When we relate China's price to the other three, we can see
that they have maintained a high cost. This may be due to China's low protective equipment

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manufacturing costs. China is also seen favorably in terms of quality choices. It generates in
accordance with the orders placed by their customers. Regardless of the fact that European
countries have shorter delivery times and lower logistic costs, they charge a high price per
container due to higher manufacturing costs. Using air freight from the United States, it took 4-6
days to arrive at SafeMedics' warehouse (Schönsleben, 2018).

Recommendations
Some issues have been found as a result of the market research and study of the procurement
process in China and the United States. Based on the issues discovered during the study, the
following suggestions have been made:

 One of the major issues that SafeMedics may expect in the process is that it may run out
of time if demand becomes too strong and delivery times from the United States and
China become too long. It is not always possible to use the manufacturer's air freight. As
a result, SafeMedics should make nearby European suppliers, such as the Netherlands,
Spain, Russia, and so on, in order to keep the order fulfilled.
 SafeMedics must strive to build positive relationships with manufacturers and logistics
companies, as well as buy from the same vendors. It aids in the development of closeness
and successful relationships. It does, in fact, allow businesses to buy goods on credit
when they don't have enough cash on hand.
 Because the company is expanding its business, it is more important to properly negotiate
and acquire goods such as anti-fog medical face shields at the lowest possible price. It
aids in the provision of services at a low cost to clients and the expansion of market
share.

Conclusion
Price, delivery times, lead times, supply chain, and other costs have all been evaluated as part of
the market research. Both China and the United States were helpful in the acquisition process. If
the negotiations with the manufacturers in China and the United States are effective and they
approve our message, it will be a profitable company. There is a significant chance to grow the
company due to the growing concern about using personal protective equipment in hospitals and
the situation generated by the recent pandemic Covid-19. Similarly, when comparing prices,
delivery times, logistics times, lead times, and other factors with European nations. China and
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the United States were considered to be more appealing due to their low manufacturing costs and
low per-container prices. SafeMedics may have a problem with its inventory because obtaining
face shields from China and the United States takes a long time.

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References
Ahmed, J., Malik, F., Arif, T.B., Majid, Z., Chaudhary, M.A., Ahmad, J., Malik, M., Khan, T.M.
and Khalid, M., 2020. Availability of personal protective equipment (PPE) among US and
Pakistani doctors in COVID-19 pandemic. Cureus, 12(6).

Bukauskas, A., Koronaki, A., Lee, T.U., Ott, D., Al Asali, M.W., Jalia, A., Bashford, T., Gatóo,
A., Newman, J., Gattas, J.M. and Shah, D.U., 2021. Curved-crease origami face shields for
infection control. Plos one, 16(2), p.e0245737.

Huang, X.L., Yang, J.R., Sun, Y.X., Chen, Y.W., Wang, X.M., Du, S.M. and Hua, Z.K., 2021.
Novel combined shield design for eye and face protection from COVID-19. Advances in
Manufacturing, 9(1), pp.130-135.

Jefferson, T., Jones, M., Al Ansari, L.A., Bawazeer, G., Beller, E., Clark, J., Conly, J., Del Mar,
C., Dooley, E., Ferroni, E., and Glasziou, P., 2020. Physical interventions to interrupt or reduce
the spread of respiratory viruses. Part 1-Face masks, eye protection and person distancing:
systematic review and meta-analysis. MedRxiv.

Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings, 5(2), pp.3811-3816.

Livingston, E., Desai, A. and Berkwits, M., 2020. Sourcing personal protective equipment during
the COVID-19 pandemic. Jama, 323(19), pp.1912-1914.

Murray, M., 2018. Negotiation in the purchasing process [Online] Available at:
https://www.thebalancesmb.com/negotiation-in-the-purchasing-process-2221379 [Accessed 14
May 2021].

Nyambok, E.O. and Kastner, J.J., 2012. United States import safety, environmental health, and
food safety regulation in China. Journal of environmental health, 74(6), pp.28-35.

Schönsleben, P., 2018. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.

Sharma, A., Gupta, P. and Jha, R., 2020. COVID-19: Impact on Health Supply Chain and
Lessons to Be Learnt. Journal of Health Management, 22(2), pp.248-261.

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Singh, S.K., Khawale, R.P., Chen, H., Zhang, H. and Rai, R., 2021. Personal protective
equipments (PPEs) for COVID-19: a product lifecycle perspective. International Journal of
Production Research, pp.1-22.

van der Beek, J.N., Hol, J.A., Coulomb‐l'Hermine, A., Graf, N., van Tinteren, H., Pritchard‐
Jones, K., Houwing, M.E., de Krijger, R.R., Vujanic, G.M., Dzhuma, K. and Schenk, J.P., 2021.
Characteristics and outcome of pediatric renal cell carcinoma patients registered in the
International Society of Pediatric Oncology (SIOP) 93‐01, 2001 and UK‐IMPORT database: A
report of the SIOP‐Renal Tumor Study Group. International journal of cancer, 148(11), pp.2724-
2735.

Zhang, L., Mol, A.P., He, G. and Lu, Y., 2010. An implementation assessment of China's
environmental information disclosure decree. Journal of Environmental Sciences, 22(10),
pp.1649-1656.

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Appendices
Appendix 1: Letter for manufacturers

Letter for Hubei Healthcare Protective Products Co., Ltd

[May 14 2021]

Letter of Negotiation

Hubei Healthcare Protective Products Co., Ltd

Dear Pan Qi

I am contacting you as the Procurement Officer for SafeMedics, a UK-based healthcare company
interested in purchasing anti-fog medical face shields.

Our requirement is for:

We are looking to purchase these products in 10 x 20ft containers from China. We have been in
the industry for many years in the United Kingdom, and we are looking to broaden our product
range for both new and existing customers. As a result, we anticipate that you can provide at a
fair price so that we can place large orders. We would need about 20 containers with a 10 x 20ft
container, depending on the amount you demand, delivery times, and lead times. We are
introducing this product to our product line for the first time, and we will order more in the
future as our clients become more familiar with it. I would also like to know if your business has
any plans to take on a bigger contribution; if so, kindly let us know.

Thank you for your attention in this matter, I look forward to hearing from you

Yours faithfully,

Joseph Wilson,

Procurement Manager
SafeMedics,
103, Borough Road,
London
SE1 0AA

16
Letter for Greateagle safety products Co., Ltd.

[May 14 2021]

Letter of Negotiation

Greateagle safety products Co., Ltd.

Dear Zoe Qiu,

I am contacting you as the Procurement Officer for SafeMedics, a UK-based healthcare company
interested in purchasing anti-fog medical face shields.

Our requirement is for:

We intend to buy anti-fog medical face shields from your business. We are looking to import this
product for the first time, but we specialize in different types of safety equipment in UK
hospitals. We discovered you as a very famous and profitable manufacturer in China while
searching for one. We need this product in nearly 20-30 containers per supply, each measuring
10 x 20ft. We are hoping that you can provide the goods at or below market price. Payments will
be made either 30 days after the contract is signed or at the time of shipping. If you can supply
the items at the price I specified, the company will place bulk orders. Furthermore, if you are
satisfied and approve of my proposal, I will begin the agreement the following month.

Thank you for your attention in this matter, I look forward to hearing from you

Yours faithfully,

Joseph Wilson,

Procurement Manager

Safemedics,

103, Borough Road,

London

SE1 0AA

17
Letter for Sanax protective products

[May 14 2021]

Letter of Negotiation

Sanax protective products

Dear Alex Freedman,

I am contacting you as the Procurement Officer for SafeMedics, a UK-based healthcare company
interested in purchasing anti-fog medical face shields.

In each supply, our company needs 5 x 20ft containers, totaling nearly 30 containers. I
discovered that your business is very well-known and has been exporting across foreign borders
for a long time. This letter is being written because our company is really interested in
purchasing supplies from your business. I hope to be able to buy containers at a fair price per
container. We will pay upon shipment because we are new to you. Furthermore, our supply
orders are primarily focused on the per-case rate you set. That is to say, if you set the price
lower, we can buy a larger quantity.

Thank you for your attention in this matter, I look forward to hearing from you

Yours faithfully,

Joseph Wilson,

Procurement Manager

Safemedics,

103, Borough Road,

London

SE1 0AA

18
Letter for The randon group

[May 14 2021]

Letter of Negotiation

The randon group

Dear Brandon Witte,

I am contacting you as the Procurement Officer for SafeMedics, a UK-based healthcare company
interested in purchasing anti-fog medical face shields.

We are procuring anti-fog medical face-shields from your company in container-sized 5 x 20ft.
As we are new to this product, our first concern is price. We considered you to be very suitable
for various suppliers and producers. I'm hoping you'll deliver the goods at a fair cost, as we all
predicted. We would be able to buy in bulk if you provide us at a lower than market price
because we are new to this product. It's difficult to ask for credit because we haven't done any
business yet, but once we become partners, I'm hoping for credit transactions as well. The credit
balance will be charged within a month, or we can discuss it further.

Thank you for your attention in this matter, I look forward to hearing from you.

Yours faithfully,

Joseph Wilson,

Procurement Manager

Safemedics,

103, Borough Road,

London

SE1 0AA

19