Chapter 4: The Global Supply Chain

Question 1

Supply chain

Answer 1

○ Use to be push -method where manufacturers , distributors and retails all had their own agendas and objectives in order to complete the part
-Now more pull-oriented- customer is exercising increased power and authority in shaping the products and services that ultimately fill their needs.

Question 2

The internet facilitates efficient improved functions in areas like:

Answer 2

• The internet facilitates efficient improved functions in areas like:
  
  • Cost control and process efficiency
  • Enhanced service through improved communication
  • Re-time status checking on shipments
  • Accelerated receiving of shipments
  • Improve freight audit processes and procedures
  • Standardization of documentation, reduction of error rates.

Question 3

Physical supply chain

Answer 3

○ Movement of goods, even services, thought the chain from manufacturer to consume ( use of freight forwarder or transport specials)
–More tradition know type of supply chain.

Question 4

Financial supply chain

Answer 4

○ Financial flow from consumer to manufacturer through the various intermediaries.
–Improved due to Internet (makes it much easier )

Question 5

Information supply chain

Answer 5

The physical and financial supply chains may be perfectly tuned and functioning optimally, However if that is not visible to a business through near real-time reporting or query capabilities (information) those accomplishments to not translate into business value.

Question 6

Integrative trade

Answer 6

Captures a transformational reality in international trad and global business.

is a model used to describe the increasing interrelationship between imports, exports, foreign investment and the global supply chain—ultimately, the conduct of international business.

Recognizes that export trade is not longer as independent as once might have been the case. Competitive dynamics, closely integrated economies and the ability to source inputs an skilled resources on a global basis are creating a dynamo where import, outsource, and foreign investment combine to allow for the manufacture of competitively prices but profitable exports.

Question 7

The Mechanics of a Trade Transaction

Answer 7

Exporters
Importers
Financers
Transporter
Broker
Agent
Government

Question 8

The Mechanics of a Trade Transaction : Exporter

Answer 8

○ Internationally oriented business person
○ Entrepreneurial quality a
○ Heart of deal maker, soul of an explore
○ Interests in international trade are purely profit or opportunity driven.
–May have attraction to extending business activities.

Question 9

The Mechanics of a Trade Transaction :Importer

Answer 9

○ Comfortable operating in the familiar domestic environment
○ Identify an opportunity to bring an innovative new product to the home market
—Contribute by bringing in new things and raising the standard of living.

Question 10

The Mechanics of a Trade Transaction: Financer

Answer 10

○ Finances the transactions

–Sometimes needs the help of other financers ( banks, export credit agencies)

Question 11

The Mechanics of a Trade Transaction : Broker

Answer 11

○ Often the first point of contact for the goods on arrival at destinations.
○ Provide temporary accommodations to store the goods
–May collect taxes and duties due

Question 12

The Mechanics of a Trade Transaction : Agent

Answer 12

○ Skilled in the mechanics of commerce
○ Well connected in the market
–Usually represents the exporter in the country of destinations.

Question 13

The Mechanics of a Trade Transaction : Government

Answer 13

○ Collects taxes
○ Regulates interaction
–Provides financing or guarantees in support of financier is transactions

Question 14

The Mechanics of Trade Transaction: Transporter

Answer 14

○ Expert at moving goods arches the globe

–Knows most secure and optimal routes

Question 15

Importing: second-string no more?

Answer 15

• Use to be seen as part of trade that drove value up, but didn’t benefit very much.
• Now seen as a matter of life and survival
–Imports and global sourcing are integral to the success of export development. Successful importing is a matter of competitive advantage.

Question 16

What is beneficial about Supplier Relationships

Answer 16

• Way to improve supply management
• By partnering companies extend the reach of their logistics system
• Involves developing person relationships and trust
• Make decisions together to enhance efficacy and costs– sometimes one partner may be at a disadvantage but it may be necessary to benefit the long run
Between companies that have a vertical a relationship usually ( operate writhing different by complementary industry sectors

Question 17

Successful exporting

Answer 17

depends on a tightly integrated process that includes product planning, design, production adaption, order processing, packaging , documentation, transportation and delivery. –> logistics management ties all of these together and ensures that they occur efficiently as they are suppose to

Question 18

Logistics

Answer 18

embraces a spectrum of activities designed to move goods , and increasingly, services from the producer to the customer as quickly and cost-effectively as possible.

Question 19

The export process

Answer 19

1. Product Development
2. Manufacturing
3. Warehouse
4. Marketing
5. Order processing
6. Shipment preparation
7. Transportation
8. Reporting to Customers
9. Deliver to customer
10. payment process

Question 20

The export process: Product Development

Answer 20

market research, testing, refinement, and modification

Question 21

The export process: Manufacturing

Answer 21

materials handling, directing human resources, process management, product adaptation and packaging

Question 22

The export process: warehouse

Answer 22

product handling, labelling and marking, and inventory control

Question 23

The export process: marketing

Answer 23

foreign travel, participating I trade missions, trade fairs and exhibitions and personal contracts.

Question 24

The export process: Order Processing

Answer 24

responding to inquiries, issuing quotations, dealing with offers and counter offers and contract negotiations

Question 25

The export process: Shipment preparation

Answer 25

removal from storage, cargo assembly, packing, marking, document preparation, securing insurance and arranging for transportation

Question 26

The export process: transportation

Answer 26

loading onto domestic transportation, physical movement from the manufacturers’ a facilities to a port of embarkation, unloading and loading onto international carriers and physical movement to the destination

Question 27

The export process: reporting to customs

Answer 27

: submission of documentation, valuation, customs process and payment of duties

Question 28

The export process: deliver to customer

Answer 28

upload at destination, movement to storage site, engagement of local transportation, loading physical movement to the customers address, unload and providing an acceptable level of post sales service

Question 29

The export process: Payment process

Answer 29

: submissions of transaction documentation to expert ours bank and request for payment, verification by exporters bank of documents, resubmission to importers bank with request for payment, verification by importer bank of documentation, issuing of credit to the exporters band and request from importer for payment.