Module 7 SCM 300
Global profit motivations - CORRECT ANSWER-Profit is equal to revenue minus
cost
Revenue opportunities associated with globalizing a supply chain:
- Reach new consumers
- Manage risk of low sales in one market by selling in multiple markets abroad
- Taking your supply chain to new locations may allow your company to learn
about alternative sale and distribution options that might be useful in other
markets
- Taking your supply chain to new locations may allow your company to learn
about new product, service, or business trends that can be adopted in other
markets.
Cost opportunities associated with globalizing a supply chain:
- Potentially lower cost materials, labor, storage, transportation, energy savings,
etc.
- Taxes, Tariffs, Legal fees, Business transaction fees
- Taking your supply chain to new locations may allow your company to learn
about business practices and trends that may allow for savings in other markets.
Global Brand strategy - CORRECT ANSWER-none good info
Intellectual property - CORRECT ANSWER-often 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 - CORRECT ANSWER-Possible Benefits
of Utilizing External Partners
• Speed - Outside partners will have a facility, employees, and machines already
in place.
, • Expertise - Not only is their firm up and operating, their firm has been in
business for years.
• Resource utilization - Their use of people, materials, and machines will likely be
more efficient than the output of what your company would be able to achieve in
the first few months/years.
• Focus on Core Competencies - focus on its strengths (design, marketing...) and
it allows the contractor to do what it does best, manufacture products.
Possible Risks of Utilizing External Partners
• Quality Control - How concerned are they about the quality level of products
that will ultimately carry your name, not theirs?
• Intellectual Property - Will this company protect the secrets that make your
products better and/or unique?
• Business Practices - Is your business partner a legal and ethical entity? How
will their negative behaviors reflect on your organization?
• Loss of strategic flexibility - When a company outsources a portion of their
supply chain to a contractor, they are willingly giving up control over some
aspects of their business.
Offshoring, Outsourcing (and both) - CORRECT ANSWER-A strategy where a
company moves manufacturing out of its "home" country to another country.
When a company contracts an outside firm to perform services, operations, or
business processes that could be or were previously performed in-house.
A strategy where a company utilizes a contractor in another country to perform
services and/or operations.
Contract manufacturers - CORRECT ANSWER-A company that produces goods
on behalf of another organization.
Near-Sourcing - CORRECT ANSWER-a type of offshoring or offshoring and
outsourcing where the location of the manufacturing facility is relatively close to
the location of the consumer.
Global profit motivations - CORRECT ANSWER-Profit is equal to revenue minus
cost
Revenue opportunities associated with globalizing a supply chain:
- Reach new consumers
- Manage risk of low sales in one market by selling in multiple markets abroad
- Taking your supply chain to new locations may allow your company to learn
about alternative sale and distribution options that might be useful in other
markets
- Taking your supply chain to new locations may allow your company to learn
about new product, service, or business trends that can be adopted in other
markets.
Cost opportunities associated with globalizing a supply chain:
- Potentially lower cost materials, labor, storage, transportation, energy savings,
etc.
- Taxes, Tariffs, Legal fees, Business transaction fees
- Taking your supply chain to new locations may allow your company to learn
about business practices and trends that may allow for savings in other markets.
Global Brand strategy - CORRECT ANSWER-none good info
Intellectual property - CORRECT ANSWER-often 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 - CORRECT ANSWER-Possible Benefits
of Utilizing External Partners
• Speed - Outside partners will have a facility, employees, and machines already
in place.
, • Expertise - Not only is their firm up and operating, their firm has been in
business for years.
• Resource utilization - Their use of people, materials, and machines will likely be
more efficient than the output of what your company would be able to achieve in
the first few months/years.
• Focus on Core Competencies - focus on its strengths (design, marketing...) and
it allows the contractor to do what it does best, manufacture products.
Possible Risks of Utilizing External Partners
• Quality Control - How concerned are they about the quality level of products
that will ultimately carry your name, not theirs?
• Intellectual Property - Will this company protect the secrets that make your
products better and/or unique?
• Business Practices - Is your business partner a legal and ethical entity? How
will their negative behaviors reflect on your organization?
• Loss of strategic flexibility - When a company outsources a portion of their
supply chain to a contractor, they are willingly giving up control over some
aspects of their business.
Offshoring, Outsourcing (and both) - CORRECT ANSWER-A strategy where a
company moves manufacturing out of its "home" country to another country.
When a company contracts an outside firm to perform services, operations, or
business processes that could be or were previously performed in-house.
A strategy where a company utilizes a contractor in another country to perform
services and/or operations.
Contract manufacturers - CORRECT ANSWER-A company that produces goods
on behalf of another organization.
Near-Sourcing - CORRECT ANSWER-a type of offshoring or offshoring and
outsourcing where the location of the manufacturing facility is relatively close to
the location of the consumer.
