Global Considerations in Operations Management Flashcards
What is global considerations?
global sourcing of inputs
overseas manufacturing
outsourcing
supply chain management
What is Global Sourcing of Inputs? (GSI)
businesses can purchase inputs from overseas markets
can take advantage of low-cost labour and low-cost materials
sourcing globally can help increase supplies without spending too much money, focused on finding most cost efficient materials and other inputs
Strengths/weaknesses of Global Sourcing of Inputs
Strengths-
costs reductions
learn abt business in different markets
accessing skills/resources that aren’t available locally
developing alternative suppliers/ input sources
increases total supply capacity
weakness-
What is Overseas Manufacturing? (OM)
the product is produced off shore to where the businesses HQ operates
allows businesses to put product into market quickly, and reduce production costs using cheap labour
Strengths/weaknesses of Overseas Manufacturing
Strengths-
cost-efficient
more skilled individuals
main business can focus on other things than manufacturing
Weakness- could be hidden costs political and financial risks takes time/money to ship goods back home local job losses hard to monitor quality overseas
What is Global Outsourcing? (GO)
part of a businesses operations is conducted overseas
production, delivery, accounting, customer service can all be outsourced
call centres are an example, they manage customer inquiries so the main businesses doesn’t spend time on it
Strengths/weaknesses of Global Outsourcing
strengths-
access to expert knowledge and high quality service
reduced costs
business can focus on core activities
production can be quicker bc task is focused on
weaknesses- less management control hard to maintain quality local job loss security/confidentiality issues lots of customer service communication issues
What is Supply Chain Management? (SCM)
Strengths/weaknesses of Supply Chain Management
strengths-
weaknesses-
