IB345 Global Supply chain Exam 1

standards infrastructure

successful products in particular markets

Directional imbalances

when there are mismatches in the volumes or types of freight moving in opposite directions in a freight market

Reverse logistics:

Involves managing the handling of goods after sold to the final customer and consumer. It is basically the packages returned by the customers.

JiT

Just in Time, A management philosophy that consists of planning the manufacturing of goods in such way that they are produced just before they are needed in the next step of the assembly process. It now includes the delivery of parts to the assembly plant just before they are needed, and the delivery of finished goods just as the retail store is running out. JIT has become part of standard operations management practices in most manufacturing facilities. JIT involves a risk if the supply chain is disrupted as production may have to shut down due to lack of materials.

Triple bottom line:

accounting framework with three parts: financial, environmental and social (profit, planet, and people)

Definition of logistics

involves getting the right product in the right way, in the right

Outsourcing:

involves handling process ownership over to a third party

utilities infrastructure

is generally taken for such as electricity, water, water, sewage, gas. Can be critical when it comes to considering operating a warehouse or establishing a corporate office.

Material substitution:

Replacement of physical product by virtual product

Aggregated procurement:

A method for selecting suppliers based on their capabilities rather than individual suppliers tendering for particular orders.

Service Level Agreement

A mutually agreed and understood binding agreement between a customer and a supplier identifying service areas and performance levels expected.

Just in time inventory:

A production philosophy and set of techniques which has many components and principles, but at its core is the idea of making do with the minimum possible level of inventory holding. Inventory is thus kept to a minimum and replenished only as it is used.

What is triage?

A robust logistics strategy that enables the entire supply chain to complete - rapid assessment of patient needs, matching patient with the right care stream as early as possible

Supplier development:

Activities led by buyers which seek to assist their suppliers in improving the services or products which their suppliers provide to them.

Largest ports

China, Singapore: in the USA: Port of Los Angeles. ... Port of Long Beach. ... Port Authority of New York & New Jersey. ... Port of Seattle & Tacoma* ... Port of Savannah. ... Port of Oakland. ... Port of Virginia.

Deregulation of transport -

Deregulation: Reduction/removal of various government-imposed barriers that hinder competition in markets.

Difference between domestic and international logistics

Domestic logistics is the distribution of goods within a country, while international logistics is the distribution of goods beyond the country boundaries. Managing logistics domestically is very different from managing logistics internationally because of the much narrower geographic scope in a domestic operation. International Logistics: This is when professionals focus on tacticals; it is the process of planning, implementing and controlling the flow and storage of goods, services, and related information from one point of the orgin to a point in a different country.

Containerization: 20 TEU and 40 TEU

Has been more of a driver of globalization than all trade agreements in the past 50 years taken together. The key contributions of containerization have been the quicker, safer, and more cost-effective movement of freight along the supply chain, rather than a reduction specifically in ocean shipping charges.

Internal integration

Integration between business functions within a single organization.

External Integration:

Integration of business processes across more than one organization in the supply chain.

Logistics Performance metrics: LPI and LSCI:

LPI is logistics performance index - ranks 160 countries' logistics performance against six key dimensions: customs, infrastructure, international shipments, logistics competence, tracking and tracing, timeliness - LSCI is liner shipping connectivity index - generated from 5 components: maximum vessel size in a country's ports, the number of companies providing services to a country's ports, the number of services offered by the liner companies, the number of ships deployed on service

MNC, TNC FDI

MNC is multinational companies, TNC is transnational corporations

Order winners:

One or more criteria that lead to the selection of a particular outsourcee by an outsourcing company.

Panamax and post-Panamax ships:

Panamax ship: A ship of the maximum size that can enter the locks of panama canal. A ship whose size is too large to enterthe locks of the Panama canal.

Difference between Materials Management and Physical Distribution:

Physical Distribution: focuses on the outbound side of logistics (plant to market) -it plays an important role in the sale of the product. Materials Management: focuses on inbound logistics

Order qualifiers:

Potential suppliers will have to first qualify by meeting those criteria and/or performance expectations defined in the Service Level Agreement before they are given proper consideration.

Visibility and Transparency:

Providing "visibility" in the supply chain, or the ability to determine where a particular shipment is located, at any time. Visibility of the supply chain: determining where goods and documents are at any point in time.

Reasons for outsourcing:

Reducing and controlling operating costs. Improving company focus. Gaining access to world-class capabilities. Freeing internal resources for other purposes. Streamlining or increasing efficiency for time-consuming functions. Maximizing use of external resources.

MRP

Stands for material required planning. It is a management tool that allows manufacturer to determine what to produce and in which quantity, in function of what it sells to its customer.

Stevedores and containerization

Stevedores was popular before the use of containers for shipping goods. The introduction of containers (or "boxes") in the late 1950s, and their eventual widespread adoption, made shipping much more efficient as well as cheaper and faster. In the 1970s, new companies, like FedEx and DHL, introduced time-defined air shipping services, and gained a large market share in domestic shipments. In the 1980s, international air shipments grew as costs came down and the number of destinations increased. Air transport became cost-competitive with ocean transport for many products

Leapfrogging:

The idea that some countries will "skip" a technology to adopt the most recent one available.

Supply base rationalization:

The process of reducing or rationalising the number of suppliers in a supply network, typically to reduce complexity and therefore cost

Transport cost sensitivity of freight:

The relationship of transport costs to freight value - high sensitivity implies minor changes in transport rates will have a major impact on transport choice decisions.

Offshoring:

The transfer of specific processes to lower cost locations in other countries.

Reshoring:

To abandon offshore activities and move them back to the original home market.

Reasons for failures in outsourcing

Unrealistic Expectations. Outsourcing sometimes is viewed as a panacea that cannot help but reduce costs and increase profitability. ... Poor Communication. ... Poor Performance. ... Conflicting Interests. ... Public Opinion.

Vertical integration and unbundling (focus on core competencies) -

Vertically integrated: a concept that implies ownership or at least control of upstream suppliers and downstream customers

Piggybacking

When a manufacturer goes oversees and asks its suppliers to continue doing business abroad with him the suppliers are said to be piggy backing on that customer's efforts.

Backshoring:

Where a company abandons offshoring and moves the activities back to the original home market.

Nearshoring:

Where companies move their offshored activities to countries closer to their home market as a result of the potential risks and delays associated with moving products from a distant location.

OEM:

a company that produces parts and equipment that may be marketed by another manufacturer. For example, if Acme Manufacturing Co. makes power cords that are used on IBM computers, Acme is an OEM.

Corporate social responsibility:

a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social wellbeing.

Land bridge:

a term coined to describe the practice of shipping goods from Asia to Europe through the United States by using railroads.

Relationship between the two ( just focus on the unionist view):

can be used to generate both cost savings and service enhancements - logistics is IN the circle of SCM

communication infrastructure

communicate with customers and suppliers by mail, by phone, or through other electronic media

Glocalisation:

companies must learn to operate as if the world were one large market Ethnocentricity: a company when doing business abroad thinks and acts as if they were still operating in their home country Polycentricity: a company adopts the host country perspective Geocentricity: a company acts completely independent of geography and adopts a global perspective, and will tailor to the local environment as appropriate

Productivity improvement in transportation

containerization and other improvements

legal and regulatory infrastructure

court infrastructure, intellectual property infrastructure and standards infrastructure.

warehouse infrastructure

has to do with locations , where the shipment will have a layover.

Circular routing:

in the circular system, vessels move in one direction as opposed to the traditional system where vessels move in both directions on each route. They preferably move in the direction of greatest traffic volume.

Definition of 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. Purpose is to create value, enhance efficiency, and satisfy customers.

Ports infrastructure, dredging, etc...

•Water Draft The depth of water determines the size of ships that can call. •Air Draft Bridge clearances also determine which ships can call. •Cranes Post-Panamax ships need wider/taller cranes than Panamax ships. •Port Operations Many ports have strong unions which limit operations. Ports Infrstructure: Infrastructure is a collective term that refers to all of the elements in place (publicly or privately owned goods) to facilitate transportation, communication, and business exchanges. Transportation Infrastructure allows goods to move efficiently within a country and between countries. This requires well-maintained seaports, airports, railways, and roads. Communication Infrastructure allows businesses to communicate clearly and quickly. This requires reliable phone lines, cell phone networks, internet service, and mail delivery.