GSC 5620 Exam 1

Mass Customization

Different product configurations contain a majority of shared components and features to accommodate volume and variety

Transnational companies behavior as they internationalize:

1. Ethnocentricity: a company when doing business abroad thinks and acts as if they were still operating in their home country 2. Polycentricity: a company adopts the host country perspective 3. Geocentricity: a company acts completely independent of geography and adopts a global perspective, and will tailor to the local environment as appropriate

Regional Trade Agreements

1. European Union 2. Association of South East Asian Nations Free Trade Act 3. North American Free Trade Agreement

Manufacturing trends due to globalization

1. Global competition 2. Competitors, partners and customers from around the world 3. Global sourcing 4. Global presence 5. Global value chains resulting in increasing complexity and competition 6. Global access to knowledge and new technologies 7. High level of customer awareness and expectation 8. Rapid pace of technological change 9. Fast rate of product commoditization 10. SCM expertise and innovation are preconditions for business success

The four stages of relationship development

1. Master - Servant Stage 2. Consultative Stage 3. Peer-to-Peer Relationship Stage 4. Competitive Stage

Key developments in Logistics and SCM

1. Reduced transport intensity of freight 2. Falling product prices 3. Deregulation of transport 4. Productivity improvements 5. Emphasis on inventory reduction 6. Changes in company structure

Key flows in SCM

1.Physical flows of materials 2.Flows of information that inform supply chain 3.Resources which help supply chain operate effectively (money, people, equipment, relationships)

Collaboration

A relationship between supply chain partners developed over a period of time

TEU

Twenty-Foot Equivalent Unit, the dimensions of a standard shipping container

UNCTAD

United Nations Conference of Trade and Development

Foreign Direct Investment

Financial flows from a company in one country to invest (for example in a factory) in another country

LSCI

Liner Shipping Connectivity Index -Generated from five components: 1. Maximum vessel size in a country's ports 2. The number of companies providing services to a country's ports 3. The number of services offered by the liners companies 4. The number of ships deployed on services to a county's ports 5. TEU capacity on the deployed ships

Combined Logistics Strategies

Long Lead Time - Lean (Plan and Execute) | Leagile (Postponement) Short Lead Time - Lean (Continuous replenishment) | Agile (Quick Response)

Keiretsu

Original equipment manufacturers work closely with their first tier suppliers to integrate manufacturing, logistics and information processes; in turn the first tier suppliers work closely with the second tier suppliers, and so on: -This enables just-in-time line-side delivery at their assembly plants -A seamless lean supply chain is created The supply chain is viewed as one extended operation

Logistics Performance Index

Ranks 160 countries' logistics performance against six key dimensions: 1. Customs 2. Infrastructure 3. International Shipments 4. Logistics Competence 5. Tracking & Tracing 6. Timeliness

Supply Chain Management

The management across and within a network of upstream and downstream organizations of both relationships and flows of material, information and resources. The purposes of SCM are to create value, enhance efficiency, and satisfy customers

Supply Chain

The network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer.

Total Enterprise Cost

The sum of all costs calculated to get the best cost for the company

Outsourcing

The transfer of to a third party of the management and delivery of a process previously performed by the company itself