SCMN FINAL TEST QUESTIONS AND ANSWERS
What is the purpose of global sourcing? What costs must be compared when considering global sourcing? - Answer-Entails identifying, evaluating, negotiating and configuring supply across multiple geographies to reduce costs, maximize performance and mitigate...
What is the purpose of global sourcing? What costs must be compared when
considering global sourcing? - Answer-Entails identifying, evaluating, negotiating and
configuring supply across multiple geographies to reduce costs, maximize performance
and mitigate risks.
-Aims to leverage global efficiencies in the creation of a product or service.
-Manufacturing & assembly operations
-Call center operations
-IT programming
What is offshore manufacturing? What are its advantages and disadvantages? -
Answer--Production of goods by one firm, in a different country.
advantages
-labor costs are cheaper, quickly rising
-strengthens competitive advantage
-able to leverage the comparative advantage of other nations
-gain market share
-help grow total market by innovation and introducing new products
disadvantages
-communication involves difficult, heavy paperwork
-visibility is more challenging to maintain
-freight is more expensive, more risky
-stockouts have higher risk of shortages
-lead time is uncertain and longer cycle time
Why is the trend of nearshoring and onshoring taking place? - Answer--With increased
global competition & pressure to reduce costs, became more competitive & innovative,
many companies are turning to these based outsourcing vendors.
, What are INCOTERMS? How do they help organizations manage global operations and
transactions? Make sure that you know
the general differences between E, F, C, and D terms. - Answer--International rules that
are accepted by governments, legal authorities, and practitioners worldwide for the
interpretation of the most commonly used terms in international trade.
-They either reduce or remove altogether uncertainties arising from differing
interpretations of such terms in different countries.
-Specify risks, responsibilities, and payments for international transport
E term - Answer-Buyer has full responsibility from the door of seller but total
responsibility also means total control
F term - Answer-Seller is responsible for packaging the good and getting the good to a
named place, usually a port of export, Buyer responsible from named place to their
location
C term - Answer-Seller is responsible for getting good through port of export and deliver
to port of import................ buyer is responsible to get good through port of import to final
destination
D term - Answer-Seller takes full responsibility for getting goods to buyer location and
Total responsibility = total control
Why is documentation so important in global transactions? What are the primary
documents used in global trade? - Answer--It drives the entire export process-moving
info in a timely fashion is key to uninterrupted freight flows.
*Critical Success Factors:
-using the right documents
-availability in advance of shipment
-Accuracy
-impacts application of tariffs
-errors create delays & costs
-Commercial invoice
-Bill of Lading
-Certificate of Origin
-Insurance Documents
-Letter of Credit
What risks do organizations face as freight moves through global supply chains? How
can they protect themselves against such
problems? - Answer-a. Theft and piracy
b. Water damage
c. Handling and stowage issues
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.31. You're not tied to anything after your purchase.
