Proforma Invoice Seller (name, address)* Proforma Invoice number 2022/Com/3450 Proforma Invoice date (yyyy-mm-dd)* Validity date of P/I (yyyy-mm- dd) Ningbo Compressor Manufacturing Co. 2021-12-20 90 days from date of issue Buyer (name, address)* XYZ Manufacturing Co. Freight forwarder (name, address) Sky Blue One Shipping Co. Country of origin* Place of destination* China Mississauga ON Canada Terms of delivery" Relevant location FOB Incoterms 2020 Ningbo Port Partial shipment: allowed Transport mode and means Port/airport of loading Transaction currency" Sea/ Rail Ningbo Port Terms of payment* Port airport of discharge Final delivery place 70% advance payment, the balance before delivery USD Vancouver BC Canada Mississauga ON Canada Number and kind of packages, Shipping description of goods Total gross weight (kg) Total cube (m') 152,000 cartons on 9,500 pallets 4,864,000 13,750 Item Item description Origin* Commodity code | Net weight Quantity Unit price Amount (kg) pcs) (USD) (USD) Rotary Refrigerant Compressors China 84148000 4,626,500 152,000 120 18,240,000 Total net weight (kg)* Sub Total amount* USD 18,240,000 Note: Discount 1. Packing: Carton packing on Pallets 2. Lead time: Approximately 40 days after down payment FREIGHT CHARGES 3. 608 cartons in each 20ft container OTHER CHARGES TOTAL AMOUNT USD 18,240,000 NAME OF SIGNATORY It is hereby certified that this proforma invoice shows the actual price of the goods PLACE AND DATE OF ISSUE (YYYY-MM-DD) described, that no other proforma invoice has been or will be issued, and that all particulars are true and correct. SEAL AND SIGNATURE United Nations electronic Trade DocsProforma invoice Seller (name, address)* Proforma Invoice number 2022/1750/Ca Proforma Invoice date (yyyy-mm-dd)* Validity date of P/I (yyyy-mm- dd) Hangzhou Material EXIM 2021-12-15 90 days from date of issue Buyer (name, address)* XYZ Manufacturing Co. Freight forwarder (name, address) Sky Blue One Shipping Co. Country of origin* Place of destination* China Mississauga ON Canada Terms of delivery Relevant location FOB Incoterms 2020 Shanghai Port Partial shipment: allowed Transport mode and means Port/airport of loading Terms of payment* Transaction currency* Sea/Classified vessel Shanghai Port Port airport of discharge Final delivery place 30% advance payment, the balance before delivery USD Vancouver BC Canada Mississauga, ON, Canada Number and kind of packages; Shipping description of goods Total gross weight (kg) Total cube (m) 150,000 Carton 927,198 33,660 Item* Item description* Origin Commodity code Net weight Quantity Unit price Amount (kg) (kg) USD (USD) INSULATION TUBE China 39211100 918,198 918,198 6.55 6,014,196.9 Total net weight (kg)" Sub Total amount* USD 6,014,196.9 Note: Discount 1. Packing: Tube in carton packing 2. Lead time: 40 days after down payment FREIGHT CHARGES 3. Carton size: 187*30*40cm 4. 300 cartons in one 40ft HC container OTHER CHARGES TOTAL AMOUNT USD 6,014,196.9 NAME OF SIGNATOR It is hereby certified that this proforma invoice shows the actual price of the goods PLACE AND DATE OF ISSUE (YYYY-MM-DD) described, that no other proforma invoice has been or will be issued, and that all particulars are true and correct SEAL AND SIGNATURE United Nations electronic Trade DocsProforma invoice Seller (name, address)* Proforma Invoice number CA/ 2021/ABC Proforma Invoice date (yyyy-mm-dd)* Validity date of P/I (yyyy-mm- dd) Shanghai RGas Filling Co. 2021-12-10 60 days from date of issue Buyer (name, address)* XYZ Manufacturing Co. Freight forwarder (name, address) Sky Blue One Shipping Co. Country of origin * Place of destination* China Mississauga ON Canada Terms of delivery Relevant location FOB Incoterms 2020 Shanghai Port Partial shipment: allowed Transport mode and means Port/airport of loading Terms of payment* Transaction currency* Multimodal/Sea and Road Shanghai Port Port Airport of discharge Final delivery place 50% advance payment, 50% against copy of B/L USD Vancouver BC Canada Mississauga ON Canada No. and kind of packages; Shipping description of goods Total gross weight (kg) Total cube (m ) 287,500 Cylinders 4,821,250 14,500 Item Item description* Origin Commodity code Net weight Quantity Unit price Amount 1 Refrigerant Gas R134a China 29033919 (kg) Cylinder) (USD) (USD) 3,910,000 287,500 35 10,062,500 Total net weight (kg)" Sub Total amount* USD 10,062,500 Note: Discount 1. Packing: Cylinder in carton packing 2. Lead time: 45 days after down payment FREIGHT CHARGES 3. 1150 cylinders in one 20ft container OTHER CHARGES TOTAL AMOUNT USD 10,062,500 NAME OF SIGNATORY It is hereby certified that this proforma invoice shows the actual price of the goods PLACE AND DATE OF ISSUE (YYYY-MM-DD) described, that no other proforma invoice has been or will be issued, and that all particulars are true and correct. SEAL AND SIGNATURE United Nations electronic Trade Docscase description XYZ is a home appliances manufacturing company in Canada. XYZ imports insulation tubes, refrigerant gasses, and rotary compressors from three different Chinese suppliers and ships them to its warehouse in Mississauga through the Vancouver port. The purchased products are summarized as below. Table 1: Summary of Purchased Products Insulation Tubes Refrigerant Gasses Rotary Compressors Number of Containers 500 250 250 Container Type 40ft high cube (HC) 20f 20ft Cargo Weight per Container 2,000 kg (approximately) 19,285 kg 19,456 kg The specific details of each product are as per the attached Proforma Invoices. XYZ has recently found a supplier in Spain that sells all these products together and they are considering shifting to them. A comparison between the current and new suppliers is summarized below. Table 2: Comparison between Chinese and Spanish Suppliers Chinese Suppliers Spanish Supplier Freight Charges . CAD 6,500 per 20ft container; max . CAD 3,500 per 20ft container, load 20,000 kg max load 20,000 kg . CAD 8,000 per 40ft HC container; . CAD 4,500 per 40ft HC container, max load 23,000 kg max load 23,000 kg . Different products can be consolidated in each container to. Different products can be consolidated in each container to optimize the usage of space and weight limits. . Not xed in current purchase . FOB prices are 1% higher than contracts the Chinese suppliers\" prices for . May change from time to time the same technical specications. . Fixed for at least one year ransaction Currency Payment Method - As per attached Proforma Invoices - 90 days bill of exchange - USU-CAD exchange rate: 1.25 Import Duty 6.5% for all products 4 orders per year with equal quantity for each product Delivery Route From Shanghai port to Mississauga through Vancouver Delivery Time 85 days from date of order Including lead time and submission ransit time) 2.5% for all products Unlimited orders per year Each order would be a mixture of all three products in one invoice. From Spanish port to Mississauga through Montreal 60 days from date of order submission You are a group of experts from a supply chain solutions company. and you have been assigned to advise XYZ. You will analyze XYZ's current situation, research the effects of purchasing from the Spanish supplier on the company's supply chain, and provide a nal practical solution. assignment questions You are expected to conduct comprehensive research and prepare a proposal answering the following questions. Question 1 What are the effects of new suppliers on cost reduction? If XYZ buys from Spain, which costs would decrease? Based on the case facts, calculate the amount of cost reduction. Question 2 Based on your analysis, select the best and comprehensive procurement solution for XYZ. How should they proceed: Should they continue working with current suppliers, shift to the new Spanish supplier, or use another solution? Explain your reasons. Question 3 Based on your solution, prepare a proposal analyzing the positive and negative effects of your solution on the following functions of the company: - Global supply chain and operations management . Purchasing process . Supply chain risk management . Finance and profit making . Production planning . Inventory and materials management . Logistics and warehousing . Ethical and sustainability issues in Supply Chain Management