Supply Chain Management Test 3

Which international trade document assures the coverage of loss or damage to freight during transport?

Insurance certificate

When an Incoterm includes the letter "I" what does it stand for?

Intermodal

The seller is responsible for delivering the goods to a named point chosen by the buyer who then takes responsibility for contracting main carriage

"F" Terms

What is the landed cost for a shipment of hockey sticks: $12,000 product cost, $450 delivery, 10% duty

$13,650

What is the purpose of global sourcing?

(Lowering supply chain costs) -Entails identifying, evaluating, negotiating and configuring supply across multiple geographies to reduce costs, maximize performance and mitigate risks. -Aims to leverage global efficiencies in the creation of a product or service.

What are INCOTERMS?

-International rules that are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of the most commonly used terms in international trade. -They either reduce or remove altogether uncertainties arising from differing interpretations of such terms in different countries.

Optimize capability of SCP

Creation and evaluation of optimal plans within the context of the company's current operating model

Which group is ultimately responsible for establishing smart borders that increase security while facilitating the movement of legitimate trade?

Customs and Border Patrol

When choosing a mode of transportation for international freight, you should consider all of the following factors EXCEPT:

Customs liquidation

What is the communication channel in global SCM?

Documentation and information sharing activities geared toward creating visibility and control

According to the module reading on the Logistics 2030 study, the technology investment priority for sourcing by 2030 will be to:

End-to-end visibility

Transaction channel

focuses on the ownership transfer, freight control, and payment responsibilities. Within this Selection of trade terms clarify the financial liabilities and risks of each party in an international transaction.

Supply chain planning solutions support the:

forward-looking process of coordinating assets to optimize the delivery of goods, services, and information from supplier to customer, balancing supply and demand.

Mobile technology includes:

handheld computers, tablets, bar-code and label printers, scanners, RFID tags, GPS, near field communications, voice recognition software

Carriers are ordinary bailees and if found to be liable for freight loss, damage, or delay, international rules limit their financial risk

True

Companies are investing heavily in SCM software and technology to improve their competitiveness

True

Companies must develop a supply chain wide technology strategy to support multiple levels of decision making. It creates a clear view of the flow of products, information, and services across the supply chain

True

Demand for high value, time sensitive finished goods must be facilitated through rapid, safe, and efficient global supply chain processes

True

Global production allows companies to extend their reach around the world through a variety of ownership options

True

If problems with an import shipment are found at the border, US Customs has the authority to order the goods to be destroyed, exported, or held pending correction

True

Information is the lifeline of supply chains

True

Information must be accurate, timely, and link all the essential processes

True

Poor planning and management of the final leg of an international transaction can result in delays and higher costs due to port congestion, carrier capacity shortages, and facility inefficiencies

True

Successful global sourcing requires that a company analyze the pros and cons of going international, following a logical sourcing process, and establishing cross-border capabilities

True

Technology is ever-changing and companies must keep pace with the latest developments

True

The global production decision should be based on desire for control versus risk, the availability fo resources, and the level of Edman in different regions

True

The module reading indicates that when preparing to export goods, you must plan for unexpected costs or shortages in countries with poor transportation or information technology infrastructure

True

The nature of a product - size, durability, and value - may make some modes infeasible for international transportation. A mode may not be able to physically, legally, and/or safely transport the goods

True

There is significant risk involved in global manufacturing as it increases supply chain complexity and many organizations fail to reach their financial targets

True

When it comes to global SCM, failing to plan means that you are planning to fail! And failure involves great cost

True

In which situation would it be most appropriate to transfer risk by purchasing freight insurance?

When the shipment value is low and you're moving it internationally

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 his risk by making the goods available at the point of origin

"E" terms

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 goods or the vessel, the terms sometime require that he purchase freight insurance

"C" terms

What are the 5 primary steps in the global sourcing process?

1. Evaluate the spend category an user requirements 2. Identify and qualify potential suppliers 3. Select the supplier and negotiate the details 4. Plan and execute the implementation 5. Monitor the results and take corrective action

What are the 3 distinct moves of SCM?

1. Initial move 2. International move 3. Final move

What are the key drivers of global production?

1. Labor cost differences 2. Emerging market potential 3. Reduction of transaction costs 4. Reduction of trade barriers

What is the value proposition for global SCM?

1. Low supply chain costs create profitable matching of supply and demand 2. Suppliers gain access to global markets at reasonable cost 3. Consumers gain wider variety of affordable goods 4. Workers gain access to higher paying, skilled jobs, boosts standard of living

What are the 3 Global SCM channels?

1. Transactional Channel 2. Communication Channel 3. Distribution Channel

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

15 days

Supply chain managers can only derive valuable insights from data that is:

Accurate, Accessible, Relevant, Timely, Transferable, Reliable, and Usable

What the characteristics of high-quality supply chain information?

Accurate, Accessible, Relevant, Timely, Transferrable, Reliable, Usable

When moving small quantities of high value computer chips from a factory in Japan to an Apple phone assembly plant, you should use:

Air cargo + truck

Which mode of transportation is best suited to seasonal, high value designer apparel made in Italy for US retailers?

Air transport

How many distinct moves are involved in most global supply chain transactions?

At least three

When should the process of clearing an import shipment through US Customers begin?

Before the goods arrive at the border

What type of software tools help SC managers understand why events occurred, their likelihood of re-occurrence, and the impact of supply chain changes through advanced quantitative analysis, data mining, and predictive modeling?

Business analytics tools

Enterprise Resource Planning (ERP)

Business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office function related to technology, services, and human resources

INCOTERMS Group E

Buyer takes all cost and risk responsibility after loading cargo at shipping facility

Global sourcing opportunities

Capacity access, Risk reduction, Supplier innovation

How will newer technology developments help support supply chains?

Cloud computing is emerging as a viable option for on-demand access to supply chain software applications and data sharing. The model operates on a pay-as-you-go structure and offers a consistent environment for deployment.

What are some key technology developments?

Cloud computing, and mobile technology

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

Commercial invoice

Capabilities of SCP

Configure, optimize, respond

Supply chain excellence includes:

Connectivity, Collaboration, Execution, Optimization, Visibility, & Speed

_______ is a popular global production method in which one company produces goods under the label or brand of another firm

Contract manufacturing

What is the distribution channel in global SCM?

Decisions regarding mode, carrier, and route selection to promote efficient, safe, and reliable delivery

Business intelligence tools provide on-demand access to supply chain software applications and data sharing

False

Which of the following statements is TRUE?

Freight protection is a critical issue because of the hazards and risk that accompany international transport

What process focuses on planning, implementing, and controlling the cross-border flows of materials, money and information between companies?

Global SCM

How is global SCM different from domestic SCM?

Global SCM focuses on planning, implementing, and controlling the cross-border flows of materials, money and information between companies in different countries. As companies move from National to Global operations, supply chain size and complexity grow dramatically.-Global networks are more complicated-multiple participants-new types of orgs & role players-Global logistics operations are more challenging -greater distance & +3 distinct moves-extensive product handling-shipment visibility issues

_____________ entails identifying, evaluating, negotiating, and configuring supply across multiple geographies to reduce costs, maximize performance and mitigate risks

Global sourcing

What is Global SCM?

Global supply chain management focuses on planning, implementing, and controlling the cross-border flows of materials, money, and information between companies in different countries

Global sourcing is not risk-free. A potential challenge is:

Higher logistics expenses

What are the complexity issues in global SCM>

International transactions require more steps (up to 106 steps)

Mobile technology is

Many logistics and transportation personnel are using multipurpose, ruggedized or commercial-grade mobile devices because they allow more efficient management of the supply chain while allowing managers to work form wherever they are located

What costs must be compared when considering global sourcing?

Landed cost of a global shipment = purchase price of the goods, the delivery charges, insurance fees, and customs duties. Extra fees for third party services such as documentation preparation, export packing, and related charges Also: in-transit inventory ownership costs, warehousing expenses, and other potential costs related to delays, damage, or lost sales

What are the key risks in global sourcing?

Lead time, expenses, damage, theft and visibility

What are the advantages and challenges of a global sourcing strategy?

Longer lead times, Higher logistics expenses in the form of inventory carrying costs, Higher transportation costs, Increased susceptibility to in-transit damage and theft, Lower intellectual property protection, Reduced supply chain visibility

What is a primary risk of deploying a global sourcing strategy?

Lower intellectual property protection

Automatic Identification

Methods of automatically identifying objects, collecting data about them, and entering that data directly into computer systems. Technologies include bar codes, Radio Frequency Identification (RFID), biometrics, magnetic stripes, Optical Character Recognition (OCR), smart cards, and voice recognition

_________________ tools use mathematical modeling to quickly assess your options and find the solution that satisfied supply chain stakeholders

Optimization

Technology capabilities needed are:

Optimization, Cross-chain visibility, Sped to market, Agility, Collaboration, Adaptability, Differentiation, & Risk Management

What goals and capabilities can be achieved through effective supply chain information technology?

Optimization, Cross-chain visibility, Speed-to-market, Agility, Collaboration, Adaptability, Differentiation, Risk Management

What is the transactional channel in global SCM?

Ownership transfer issues and responsibilities for freight management

During the entry process, the Harmonized Tariff Schedule bases duty calculation upon:

Product classification, valuation, and country of origin

What are the costs to consider in global SCM?

Product costs Landed costs, & Unanticipated costs

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

Release to the importer

When supply chain data is_____, it contains pertinent details and support analysis.

Relevant

When a company chooses not to purchase insurance for goods in transit, what are the practicing?

Risk retention

INCOTERMS Group D

Seller takes all cost and risk responsibilities after loading cargo at shipping facility

INCOTERMS Group F

Seller takes cost and responsibility to exporting site then Buyer takes cost and responsibility after that

What are some SCM Game Changers in technology innovations?

Sensors and Wearables, Cognitive Computing, Cloud technology, 3D printing

Explain software applications

Software applications, which are hosted by the software supplier, are accessed by the end user over the Internet. Also called cloud computing, this format enables clients to use software solutions without having to own, repair, upgrade and maintain their own IT systems and equipment

Cloud computing is

Software-as-a-service (SaaS), or on-demand software, is an increasingly popular delivery mode that makes virtually all software applications available to operations of any size

In the event of a supply chain disruption, this software triggers corrective actions based on predefined work flow rules

Supply chain event management

______ tools facilitate improved performance of operating tasks form the time a purchase order is placed until the order is delivered

Supply chain execution

According to the reading, ______________ applications like WMS and TMS control, monitor and allocate resources related to various supply chain operational processes

Supply chain execution and order fulfillment software

What are the four primary categories of supply chain software? What is the purpose of each category?

Supply chain planning/execution: gain accurate, detailed insight & facilitate improved performance Event management/visibility: accurate and timely information back on track Business intelligence: eliminate the need to manipulate data Facilitating tools: barcode and RFID

Configure capability of SCP

Support a company's efforts to design their supply chains, taking account of future alternative operating models and/or trade-offs between different configuration

Respond capability of SCP

Support the ability to profitably respond to changes in any aspect of execution in a near-real-time manner

Customer Relationship Management

System for managing a company's interactions with current and future customers. It involves using technology to optimize, automate, and synchronize sales, marketing, customer service, and technical support

Who has the responsibility to ensure that goods meet admissibility requirements such as proper marking or labeling, packaging, or safety standards and all permits certificates and licenses from applicable government agencies have been obtained before the goods arrive in the US?

The importer

This mode selection factor focuses on the total elapsed time form landing through delivery.

Transit time

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

True

According to the module reading, export contracts describe the transportation obligations, ownership risks and costs responsibilities in a domestic or international trade transaction

True

Business Analytics is the:

combination of skills, technologies, applications, and processes used by organization to Gian insight in to their business based on data and statistics to drive business planning

Supplier Relationship Management

software enables businesses to manage the relationship between buyers and suppliers. Procurement personnel use SRM software to define replenishment strategies, manage contracts, evaluate supplier performance, and establish strategic sourcing relationships. Event management tools such as alerts and notifications help minimize inventory stock-outs and stockpiles.

3 global channels that support international trade

the transaction channel the communication channel the distribution channel.

Supply chain planning (SCP) software sits on top of a:

transactional system to provide planning, what-if scenario analysis capabilities and real-time demand commitments, considering constraints

Why has global production grown?

• Access to lower wage rates • Access to customers in emerging markets • Reduction in transport and communication costs • Reduction in trade barriers • Availability of resources • Diversification to mitigate risks