Exam 4 - SCM 300
Global profit motivations
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
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
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
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
A strategy where a company moves manufacturing out of its "home" country to
another country
Outsourcing
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
A strategy where a company utilizes a contractor in another country to perform
services and/or operations
Contract Manufacturers
A company that produces goods on behalf of another organization
Near-sourcing
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
Global profit motivations
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
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
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
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
A strategy where a company moves manufacturing out of its "home" country to
another country
Outsourcing
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
A strategy where a company utilizes a contractor in another country to perform
services and/or operations
Contract Manufacturers
A company that produces goods on behalf of another organization
Near-sourcing
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
