test 3

which incoterms group is best described by the following responsibilities ; the buyer controls virtually the entire transaction and takes on nearly all risk. the seller minimizes his risk by making the goods available at the point of orgin

"E" terms

which incoterm group is best described by the following responsibilities; the seller is responsible for delivering the goods to a named point chosen by the buyer who then takes responsibility for contracting main carriage and all other responsibilities

"F" terms

What are the comparative advantages of international air and ocean transportation? Be prepared to choose between the modes for different shipments.

-(INTERNATIONAL) Advantageso Fastest mode (shorter transit times, reduced inventory levels)o Less handling (lower damage rates)-Disadvantageso Most expensive mode based on weight and spaceo Limited carrying capacityo Limits volume of goods- Ideal for high value, perishable, and time sensitive types of goods (OCEAN)--Advantageso Least expensive transportation modeo High capacityo Fuel-efficient-Disadvantageso Slow transit timeso Slower customer responseo Higher levels of safety stocko Higher risk of damage- Works well for seasonal goods, lower value/risk goods, bulk commodities, and large items

according to the module reading before you can fully embrace a predictive supply chain, you need to start implementing

a data drive strategy

Communication Channel

Documentation and information sharing activities geared toward creating visibility and control

Supporting Tools-

Enterprise Resource Planning - business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

which of the following is a barrier to global manufacturing success

increased logistics costs

when an incoterm included the letter "I" what does it stand for

insurance

which global production strategy allows a shared risk-reward scenario where each company invest in the manufacturing capability, provides for some local ownership of the venture which may be a legal requirement, and smooths out the obstacles of enetering a foreign market

join venture

What are the key drivers of global production activity? What risks emerge with global production?

key drivers-Access to lower wage rates Access to customers in emerging markets Reduction in transport and communication costs Reduction in transport and communication costsReduction in trade barriersAvailability of resources Diversification to mitigate risks----Risk emerge- Increased logistics costs Increased delivery spending Unexpected expenses

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

less

Automatic Identification -

methods of automatically identifying objects, collecting data about them, and entering that data directly into computer systems (i.e. without human involvement). 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 satisfies supply chain stakeholders

optimization

Transaction Channel-

ownership transfer issues and responsibilities for freight management

.What are INCOTERMS? How do they help organizations manage global operations and transactions? Make sure that you know the general differences between E, F, C, and D terms.

International COmmerical TERMS-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.b. Define when & where transfers should take place. Physical goods, payment, legal title.

How can organizations delay or avoid paying import duties on products? Be prepared to calculate landed costs, duties, and exchanges rates from the bonus activities. All formulas will be provided.

Using foreign trade zones (specific locations of a country that have acquired a special customs status) or a Bonded Warehouse (holds goods on which the duties are unpaid, goods stored under bond & in the joint custody of the importer, or his agent, & the customs officers)

which incoterm group best describes by the following responsibilities; the seller has maximum duties and risk because he must make the goods availiable upon arrival at the agreed destination and ust sometimes handle import clearance

"D" terms

What is the purpose of global sourcing? What costs must be compared when considering global sourcing?

. Aims to leverage global efficiencies in the creation of a product or service. The focus is on saving money.b. Materials Cost, Trans Cost, Inventory Carrying Cost, Cross-border taxes, tariffs, and duty costs, supply and operational performance, Supply and operational risk.

What activities are involved in the U.S. customs entry process? What govt. agency manages the entry process?

1. Entry Filling2. Arrival3. Examination4. Classification5. Taxation6. Release ------US Customs and Border Protection (USCBP)-Responsibilities: assessment & collection of duties and taxes, enforcement of laws, administer navigation laws and treaties

What risks do organizations face as freight moves through global supply chains? How can they protect themselves against such problems?

1. Theft & piracy2. Water damage3. Handling & storage issues4. Fortuitous losses5. Contamination of cargo by other cargo6. Stowaways pilfer or contaminate cargo7. Poor port handling due to inadequate equipment. They Can Portect themselves by ---1. Damage prevention: proper packaging, international markings, waterproofing2. Limit theft opportunities: Avoid high risk routs, congested ports, unknown carriers, and blatant marketing on cartons3. Manage financial risk: Use appropriate INCOTERMS and purchase insurance

4.How will newer technology developments help support supply chains?

Cloud computing- 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. Mobile Technology- Mobile TechnologyMany logistics and transportationpersonnel are using multipurpose, ruggedized or commercial-grade mobile devices because they allow more efficient management of the supply chain while allowing managers to work from wherever they are located.

According to the reading which incoterm puts the lowest burden of responsibility on the buyer/importer

DAP- delivered at the place

Distribution Channel-

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

Business Intelligence and Supporting Tools

From video slides= Business Inteligence - "BI and analytics cut across all three levels but will usually tend to be More for the tactical and operational level,"said Ellis. "When manufacturers integrate BI with SCM they should think about what information and insights the business will need at that level to achieve its goals."

.How is global SCM different from domestic SCM? How do the 3 global channels support international trade?

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

____ entails identifyinf,evaluating,negotiating, and configuring supply across multiple geographies to reduce cost. maximize performance and mitigate risk.

Global sourcing

What is the role of ports in global supply chain operations? Why is port selection so critical?

Goal is to facilitate the quick transition of freight from international carriers to domestic carriers for customer delivery----1. There may not be a direct move after the goods are brought into port (so you have to choose the right port)2. Access can be limited3. Ports can become very congested

Why is documentation so important in global transactions? What are the primary documents used in global trade?

It drives the entire export process, provides for accuracy, ownership etc. Describes the transaction, basis for all other documents.

What are the charecteristics of High quality supply chain information

Managers can only derive information from data that is: accessible, accurate, relevant, timely, reliable, transferable, And usable.

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

Supply chain planning capabilities: Configure- support a company's efforts to design their supply chains, taking account of future alternative operating models and/or trade-offs between different configuration.

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

Technology capabilities needed: optimization, cross-chain visibility, speed to market, agility, collaboration, adaptability, Differentiation, risk technology Supply chain excellence: connectivity, collaboration, execution, optimization, visibility, speed

Supply chain event management-

These systems are like watchdogs monitoring processes inside the four walls of a facility or across the supply chain for unexpected events that are out of tolerance for the plan—like the shortage of parts on an assembly line or the breakdown of equipment in a DC. --In case of an event, the system sends an alert to a decision- maker by fax, e-mail, pager or on a PDA so immediate action can be taken

Supply chain execution:

applications that direct manufacturing operations, oversee distribution processes like receiving And order fulfillment, and ship products. Manufacturing Execution Systems Order Management Systems Warehouse Management Systems Transportation Management Systems **Like foot soldiers, supply chain execution solutions carry out the plan created by the planning systems.

___ tools that provide access to timely, accurate data that can be used to support shipment tracking and product traceability, supply chain event management and replenishment

automatic identification

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 of the cargo?

bill of lading

as noted in the module reading. which export document is the main document used by customers to determine an amout for the customs duties

commercial invoice

Optimize

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

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

reduce costs, access new markets and find new suppliers. But it also comes with challenges such as geopolitical instability, cultural differences, regulatory issues and currency fluctuations.

when a company chooses not to purchase insurance for goods in transit what are they practicing

risk retention

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.

what type of software tools help SC managers use complex algorithms, optimization techniques, and heuristic to solve supply chain objectives within a stated planning horizon

supply chain planning tools

Respond

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 often involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

if data is portable and supports decision making then the data is

transferable and relevant

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

true

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

when the shipment is high value and your moving it internationally