Exam 4 - SCM 300
Global profit motivations - Answer- Companies want to maximize profit; profit is equal to revenue minus cost. So, as a company considers globalizing its supply chain, both revenue and cost issues must be considered
Global brand strategy - Answer- As companies expand their sup...
Exam 4 - SCM 300
Global profit motivations - Answer- Companies want to maximize profit; profit is
equal to revenue minus cost. So, as a company considers globalizing its supply
chain, both revenue and cost issues must be considered
Global brand strategy - Answer- As companies expand their supply chains globally,
especially to new consumer markets, these companies must be prepared to deal
with differences in:
- Packaging laws
- Accepted packaging conventions
- Environmental requirements
- Different distribution and retail systems
- Different consumer tastes and needs
- Laws that impact truck size
- Label requirements
Intellectual property - Answer- Refers to copyrights, patents, trademarks and other
designations that protect the creative ideas of a company, an artist, or other creator
of goods, ideas and other output
Benefits and Risks of External Partners - Answer- Benefits -
1. Speed
2. Expertise
3. Resource Utilization
4. Focus on Core Competencies
Risks -
1. Quality Control
2. Intellectual Property
3. Business Practices
4. Loss of Strategic
5. Loss of Strategic Flexibility
Offshoring - Answer- A strategy where a company moves manufacturing out of its
"home" country to another country
Outsourcing - Answer- When a company contracts an outside firm to perform
services, operations or business processes that could be or were previously
performed in-house
Offshoring and Outscourcing - Answer- A strategy where a company utilizes a
contractor in another country to perform services and/or operations
Contract Manufacturers - Answer- A company that produces goods on behalf of
another organization
, Near-sourcing - Answer- refers to a type of offshoring or offshoring and outsourcing
where the location of the manufacturing facility is relatively close to the location of
the consumer
Manufacturing Compliance - Answer- The business behaviors of a manufacturer
associated with following the regulations, practices and other requirements that their
clients have established
Manufacturing Audits - Answer- A process whereby companies examine whether or
not their manufacturing contractors are abiding by the legal and agreed upon
regulations, business practices and other established manufacturing requirements
Currency Exchange Rate Considerations - Answer- It takes time to buy supplies,
manufacture products and move them to their final destination. In a global supply
chain, time means money
Infrastructure - Answer- Refers to the physical structures and equipment utilized to
move goods
Customs and Regulations Considerations - Answer- Governments establish customs
agencies to control the goods that enter and leave a country, i.e. imports and
exports. These customs agencies monitor whether importers and exports are
adhering to the customs regulations established by the government
Customs-Trade Partnership Against Terrorism (C-TPAT) - Answer- A voluntary
program developed by US Customs and Border Protection for companies importing
goods into the US. The program requires member organizations to report a
significant level of detail related to supply chain partners and actions for each
imported shipment
Third-Party Logistics Company - Answer- A contractor that performs one or more
logistics functions for their client in an effort to facilitate effective and efficient
movement in the supply chain. This third-party contractor can neither be the buyer
nor the seller of the items being moved
Freight Forward - Answer- A contractor that helps companies organize the efficient
and effective shipment of goods from one point in the supply chain to another.
Freight forwarders do not actually transport the goods, instead they negotiate and
arrange for one or more logistics companies to prepare, secure, store, track and
move the cargo
Customs House Broker - Answer- A contractor (company or person) that helps a
client's goods clear customs in a foreign country
Free Trade Zone (FTZ) - Answer- A geographic area sanctioned by the government
where items are not under the control of customs authorities. As such, goods can be
imported into a country, brought into an FTZ and then stored, displayed and/or
manipulated before being re-exported without ever being inspected or taxed by
customs officials
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