SCMN Final Exam
Final move
Deliver goods from a customer's entry point to a customer's location.
FOB origin
Delivery term, where the buyer takes responsibility at the seller's location.
FOB destination
Delivery term, where the seller takes responsibility at the buyer's location.
Considerations on choosing which mode to use
Direct/indirect service, capacity, transit times, safety, and cost.
Direct service
Directly form origin to destination.
Communication channel
Documentation requirements and the interactions with governments and stakeholders.
Business intelligence tools
Eliminates the need to manipulate data by extracting data from where it is analyzed in execution systems.
U.S. customs entry process
Entry filing with key documents, arrival, examination, classification, taxation (duty), and release.
Five steps in global sourcing
Evaluate the spend category, identify and qualify potential suppliers, select the supplier and negotiate the details, plan and execute the implementation, monitor results and take corrective action.
Purpose of bill of lading
Evidence of contract carriage (details, type, quantity, and destination), receipt of goods (proof that carrier has received goods in proper condition), and document of the title to the goods (proof of ownership).
Global supply chain management
Focuses on planning, implementing, and controlling the cross-border flows of materials, money, and information between companies in different countries.
Cloud computing
On demand access, very accessible, centralized data, more affordable, one version of facts, pay as you go structure, and third party experts.
Contract manufacturing
One company produces goods under the label or brand of another company.
Customs clearance
The module reading explains that ____ is the process of preparing and submitting a specific set of documents required to obtain permission from relevant authorities to facilitate the import of goods.
International transportation
Transporting goods, clearing customs, and final in country delivery.
True
True or False: A properly developed supply chain wide technology strategy supports multiple levels of decision making and creates a clear view of the flow of products, information, and services across the supply chain.
False
True or False: According to the module reading, ERP solutions provides sell best-of-breed supply chain software for specific functions.
True.
True or False: According to the module reading, leading organizations are using advanced technologies to significantly improve visibility and thereby become far more responsive to major distribution and variability within their domestic, regional, and global supply chains.
True
True or False: According to the module reading, to avoid problems and delays with export operations, companies should use global supply chain experts. Work with logistics partners that understand local rules and regulations, as well as trade compliance companies and customs law consultants.
False.
True or False: Business analytics tools give supply chain managers ready access to supply chain information using a pay-as-you-go structure.
True
True or False: Customers are allowed to modify products while in a foreign trade zone and duties are paid only if the products enter the U.S. market.
False
True or False: Entry filing, examination, classification, and taxation are not a part of the import preparation process.
True
True or False: Global sourcing is a pathway to new designs and specialized intellectual capital that may not be available domestically.
True
True or False: The global journey is finished only when the customer has received, inspected, and signed for the goods.
Incoterms
Universally accepted terms of sale that specify how the buyer and the seller share the costs of freight and insurance in an international transaction and at which point the buyer takes the title to the goods.
Optimization
Using mathematics to assess options and find solutions quickly.
Intermodal
Using multiple modes of transportation.
Primary supply chain execution applications
Warehouse management, transportation management, manufacturing execution, global trade management, and distributed order management.
Accurate, accessible, relevant, timely, reliable, and usable.
What are the characteristics of high quality supply chain information?
Planning, execution, event management, and business intelligence.
What are the fair categories of supply chain software?
Product, landed, and unanticipated costs.
What costs must be compared when considering global sourcing?
Enhance decisions, lead to a more efficient process, reduce waste, and demand fulfillment.
What do stronger planning capabilities do?
Safety performance, costs of service, etc.
What drives selection of an international transportation mode?
Negotiating terms, preparing documents, and protecting freight.
What goes into export preparation?
U.S. customs and border protection.
What government agency manages the entry process?
Harmonized tariff schedule
What is the basis of import duties paid to move products into the U.S.?
To move an integrated system that uses real time data and promotes collaboration.
What is the goal of supply chain planning software?
C
What type of software tools help SC managers use complex algorithms, optimization techniques, and heuristics to solve supply chain objectives within a stated planning horizon? A) Business analytics tools B) Business intelligence tools C) Supply chain planning tools D) Supply chain event management tools
D
What type of tariff system is used when U.S. Customs bases the import duties on the value of the goods? A) Quantity based tariffs B) Seasonal tariffs C) Entry tariffs D) Ad valorum tariffs
Intercontinental trade
What type of trade typically moves through large airports?
C
When a company chooses not to purchase insurance for goods in transit, what are they practicing? A) Risk redistribution B) Risk minimization C) Risk retention D) Risk management
International
When an incoterm includes the letter "i," what does it stand for?
A
When choosing a mode of transportation for international freight, you should consider all of the following factors except: A) Customs liquidation B) Transit time C) Freight rates D) Routing options
C
Which International trade document is an escrow-like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale? A) Commercial invoice B) Shippers letter of instructions C) Letter of credit D) Bill of lading
Distribution
Which global SCM channel focuses on mode and carrier selection, routing, and safe delivery?
Licensing
Which global production options provide relatively low risks, but offers little control?
Distribution channel
Which global supply chain focuses on appropriate selection of modes, carriers, and routes to facilitate safe and cost-efficient distribution of goods?
B
Which group is ultimately responsible for establishing smart borders that increase security while facilitating the movement of legitimate trade? A) Internal revenue service B) Customs and border control C) Immigration and naturalization service D) Homeland security
Optimization
____ tools use mathematical modeling to quickly assess your options and find the solution that satisfies supply chain stakeholders.
Direct foreign investment
A wholly owned enterprise, high risk, heavy investment in a brand new facility, and has complete control.
Supply chain software
solving supply chain objectives by using complex algorithms, optimization techniques, and heuristics.
E-terms
A departure term where the buyer is responsible for all transportation.
C-terms
A departure term where the seller arranges transport to port, selects the carrier, and contracts the transportation services. The buyer assumes risks of loss or damage.
D-terms
A departure term where the seller has most responsibility, bears all costs of bringing goods to the country of destination, and is the easiest option for the buyer.
F-terms
A departure term where the seller is responsible for packing goods and delivering to the named place.
Bill of lading
A legal contract that defines responsibility for goods while they are in transit, required to move freight.
5 major modes of transportation
Air, motor, pipelines, railroads, and water.
Mobile technology
Ability to capture and access data whenever inexpensively and the ability to use apps.
Less.
According to the module reading on global supply chain trends, government and industry leaders are working to boost domestic sourcing and production capabilities. This will make companies ____ reliant on regional and global supply chains.
D
According to the module reading, ____ help sellers and buyers to easily understand the logistics costs, risks, and obligations for each party. A) Destination control statements B) Pro-forma invoices C) Contracts D) Incoterms 2020
A
According to the module reading, before you can fully embrace a predictive supply chain, you need to start implementing ____. A) A data drive strategy B) Supply chain digitization C) Robotic process automation D) Prescriptive analytics
Harmonized tariff schedule
According to the module reading, import duty rates are found in the ____.
Harmonized tariff schedule code
According to the module reading, the ____ is a 10-digit description allowed to every product. You must know it to determine duties and to ease the customs clearance.
D
According to the module reading, the importer (owner/purchaser or a licensed customs broker assigned by the owner/purchaser) has ____ to file for cargo release once the products arrive at the CBP port of entry and are declared. A) 1 month B) 1 year C) 7 days D) 15 days
DAP - Delivered At Place
According to the module reading, which incoterm puts the lowest burden of responsibility on the buyer?
U.S. customs and border protection
According to the module supply chain in action video, which agency is responsible for screening all containers that enter the U.S.?
B
According to the reading, if your import shipments are worth $____ or more, then the goods must go through the customs clearance process. A) $100 B) $800 C) $1,000 D) $5,000
D
After an import shipment has been successfully reviewed by Customs and correct payments have been made for the duties, ____ occurs and the goods are ready to be moved to the final destination. A) Classification of the shipment B) Valuation of each unit C) Import entry D) Release to the importer
Commercial invoice
An itemized statement given to a buyer by a seller and usually specifying the prices of goods or services and the terms of the sale. It determines the true value of goods.
Examples of disruptive technology
Blockchain, artificial intelligence, and automation.
Business intelligence
Build the tradition reports and output systems that provide historical accounts of functional performance for internal planning, operations, and control.
Cross chain visibility
Capture supply chain data, filter it, and make it visible.
Execution
Carry out key tasks from the time an order is placed until it is fulfilled, day to day.
Event management
Collect data in real time from multiple sources across the supple chain and cover them into information that gives managers a clear picture of how the supply chain is performing.
Freight routing
Considering the path that the shipments will follow, consider the availability of carrier service at the logical points of export or import, ports capabilities and border congestion, theft, and weather.
Business analytics
Lots of data and predictive modeling.
How to choose a carrier
Geographic coverage, transit time average and reliability, equipment availability, product protection, and freight rates.
Foreign trade zones
Goods held until release, no time limit, may be exempt from inventory tax.
Licensing
Granting another company the right to use your intellectual property.
Letter of credit
Guarantees that the seller will receive payment as long as delivery conditions have been met.
Planning
Helps organizations evaluate demand for materials, capacity, and services so that effective fulfillment plans and schedules can be developed.
Bonded warehouse
Holds goods on which the duties are unpaid. They are stored under bond in the joint custody of the importer, or his agent, and the customs officers.
The international chamber of commerce are recognized by the United Nations commission on the international trade law.
How are incoterms created?
By using the right incoterms, protecting freight, and using insurance.
How can companies mitigate risks for exporting?
By storing the items in a free trade zone or bonded warehouse.
How can organizations delay or avoid paying import duties on products?
Transportation is more difficult and expensive.
How does globalization impact supply chain operations?
D
How does globalization impact supply chain operations? A) SC network is more consistent and easily controlled B) In-transit inventories are lower C) Transportation is more difficult and costly D) All of the above
B
If an international transportation company loses, damages, or jettisons cargo, then they have: A) Total responsibility for reimbursing the customers B) Limited responsibility for reimbursing the customers C) No responsibility for reimbursing the customers
Transferable and relevant
If data is portable and supports decision making, then the data is ____.
Ocean carrier
If you have 50,000 pairs of shoes to move from Vietnam to the U.S., what is the most appropriate mode of transportation?
When the shipment is high value and you're moving it internationally.
In which situation would it be most appropriate to transfer risk by purchasing freight insurance?
Indirect service
Interrupted by changes in mode of transportation.
Intracontinental trade
Moves directly from origin to destination through international gateways or indirectly through intermodal transfer terminals and inland ports.
Intercontinental trade
Moves through major airports and seaports.
Distribution channel
Overcome the extended distance, time, and visibility challenges. Select modes, carriers, and routes.
Transaction channel
Ownership transfer, freight control, and payment responsibilities. Financial liabilities and risks.
Certificate of origin
Promotes trade compliance by attesting to the production of manufacturing origin to item.
Landed cost
Purchase price, delivery, insurance, customs, and third party fees.
B
Terms of trade (such as incoterms) do which of the following? A) Re-assign liability for freight loss or damage to a third party logistics company or insurance firm B) Clarify the seller's and buyer's respective responsibilities and risks for the transportation of goods C) Create standardized transportation contracts that eliminate all possible global transportation disputes D) Ensure that goods are not delayed at border crossing due to inaccurate or incomplete documentation
Joint venues
The creation of a company that is owned by partners with a shared risk.
B
The module reading explains that ____ is the process of preparing and submitting a specific set of documents required to obtain permission from relevant authorities to facilitate the import of goods. A) Import security filing B) Customs clearance C) Duty payment D) Global sourcing
Group 1 incoterms
These apply to any mode of transport: - EXW: EX Works - FCA: Free Carrier - CPT: Carriage Paid To - CIP: Carriage and Insurance Paid To - DAT: Delivered at Terminal - DAP: Delivered at Place - DDP: Delivered Duty Paid
Group 2 incoterms
These apply to sea and inland waterways transport: - FAS: Free Alongside Ship - FOB: Free On Board - CFR: Cost and Freight - CIF: Cost, Insurance, and Freight
Customs brokers
Third party logistics professionals hired by importers to interpret entry rules.
Transit time
This mode selection factor focuses on the total elapsed time form loading through delivery.
B
This software facilitates improved performance of day-to-day operating tasks from the time a purchase order for materials is placed until the delivery of a customer order is made. A) Supply chain planning B) Supply chain execution C) Supply chain event management D) Supply chain analytics
C
To fully understand the cost of a global transaction, what must companies consider? A) Product purchase costs B) Landed costs C) Supply chain costs
Goal of global sourcing
To leverage low costs of materials and labor, low tariffs, and economic incentives to reduce costs.
International move
Transfer goods between two countries.
Initial move
Transfer goods from the origin facility to the exit point.
C
Which incoterms group is best described by the following responsibilities: The buyer controls virtually the entire transaction and takes on nearly all risks. The seller minimizes their risk by making the goods available at the point of origin. A) F-terms B) D-terms C) E-terms D) C-terms
B
Which incoterms group is best described by the following responsibilities: The seller has maximum duties and risks because he must make the goods available upon arrival at the agreed destination and must sometimes handle import clearance. A) F-terms B) D-terms C) E-terms D) C-terms
A
Which incoterms group is best described by the following responsibilities: The seller is responsible for delivering goods to a named point chose by the buys who then takes responsibility for contracting main carriage and all other responsibilities. A) F-terms B) D-terms C) E-terms D) C-terms
D
Which incoterms group is best described by the following responsibilities: The seller selects the carrier and pays for main carriage. While the seller does not assume the risk of loss or damage to the goods or the vessel, the terms sometimes require that he purchase freight insurance. A) F-terms B) D-terms C) E-terms D) C-terms
C
Which international trade document is a bill for the goods from the seller to the buyer? It is also used by Customs agencies to control commodities and determine duty valuations. A) Certificate of origin B) Letter of credit C) Commercial invoice D) Bill of lading
Bill of lading
Which international trade document is issued by the carrier, serves a receipt that the carrier has received the cargo in good condition, and identifies proof of ownership for the cargo?
B
Which international transportation method relies on multiple carriers and equipment types to address geographic and accessibility challenges? A) Third party logistics B) Intermodal transportation C) All-inclusive transportation D) Private delivery service
B
Which of the following statements is true? A) Longer distances gives companies the ability to protect their freight because of incoterms. B) Freight protection is a critical issue because of the hazards and risk that accompany international transport C) Ocean transport is the most reliable and safe of the intercontinental modes D) Once ships dock at the port, the cargo is generally safe from loss
C
Which transportation decision focuses on issues like geographic coverage, on-time history, technical capabilities, and relationships development? A) Mode selection B) Route selection C) Carrier selection D) Type of service selection
A
Who has the responsibility to ensure that goods meet admissibility requirements such as proper marking or labeling, packing, or safety standards and all permits certificates and licenses from applicable government agencies have been obtained before the goods arrive in the U.S.? A) The importer B) The customs broker C) The transportation company D) The exporter
To facilitate transaction, payment, fulfillment, and transportation of the order. It must be available in a timely fashion, accurate, and establish accountability.
Why is documentation needed?
A
____ entails identifying, evaluating, negotiating, and configuring supply chain across multiple geographies to reduce costs, maximize performance, and mitigate risks. A) Global sourcing B) Regional purchasing C) Third party logistics D) Contract manufacturing
D
____ tools provide access to timely, accurate data that can be used to support shipment tracking and product traceability, supply chain event management, and replenishment. A) Business intelligence B) Microsoft office C) Event management D) Automatic identificaiton