Supply Chain Management Final

What are the 5 technologies that can be used to create a competitive advantage?

The internet of things, Blockchain, AI, Robots and automation, 3d printing

What are the three biggest roadblocks to making a company a digital business?

Culture, Legacy Technologies, Data access or usability

What is the overarching goal of supply chain information technology in supply chain management?

To gather real time information and make it visible across the supply chain

7 elements that make data high quality

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

8 goals of technology

Optimization, Cross-Chain Visibility, Speed to market, Agility, Collaboration, Adaptability, Differentiation, Risk Management

5 main groups of supply chain software applications

Supply chain Planning,Supply chain execution applications,Event management and visibility, Business intelligence, Facilitating tools

Supply chain planning

provided accurate, detailed information about issues that affect planning and development of supply chain activities

Supply chain execution applications

facilitate improved performance of tasks across supply chain

Even management and visibility

help manage problems scenarios and provide accurate, timely info to ensure that the right product gets to the right place at the right time

Business Intelligence

extract data across the supply chain and provide it for key decision makers

Facilitating tools

while software tools are an improvement over the traditionally used spreadsheet tools, inputs are still needed from other sources

Benefits of supply chain planning software

better decision making, more efficient process execution, waste reduction

Benefits of supply chain execution applications

better control of costs, stronger customer service, better inventory visibility, faster throughput, and higher inventory returns

3 technological developments

Cloud computing- makes all software applications available to operations of any size, Mobile Technology-allow managers to work from wherever they are located, Business Analytics- used to gain insight into people’s businesses based on data and statistics

5 stages of the Gartner Hype Cycle

Innovation trigger- technology breaththrough kicks things off, Peak of Inflated Expectations- early publicity produced several success stories followed by failures, Trough of disillusionment- interest decreases, Slope of enlightenment- how technology can benefit becomes more understood, Plateau of productivity- technology is used by the public and looked at as a routine

Disruptive Technologies Example

Blockchain, AI, and automation, disruptive technologies can be thought of as supply chain game changers

7 secrets to navigating international markets

How deep your involvement should be, How will you be paid, Check U.S. export controls, Protect your trademark, Know international contract laws, Respect cultural differences, Secure free U.S. government services

Know this

Covid 19 pandemic made companies design there supply chains to be more resilient even if that means having extra costs

Global Supply Chain Management

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

3 distinct moves in global supply chains

Initial move(origin point to exit port), International move(exit port to entry port), Final move(entry port to customers location)

3 channels of global supply chain management

Transaction channel(payment responsibilities), Communication Channel(documentation requirements), Distribution Channel(proper selection of routes)

Cost considerations for global supply chain management

Landed Cost(total cost of a product through supply chain), Third Party Fees(documentation prep,export packing),Sneaky Costs(warehousing expenses,costs related to delays, damages or lost sales

Global sourcing

A procurement strategy in which a company broadens its supply base beyond its home borders to create competition and reduce prices for purchased goods.

Goals and Risks of Global Sourcing

Goals(reduced costs, expand capacity, reduce risk, access specialized skills, new designs, and ideas), Risks(longer lead times, higher inventory carrying costs, higher transportation costs, increased chances of damages or theft, lower protection of intellectual property, reduced visibility

4 methods of Global manufacturing

Licensing(Allowing a different company to use your intellectual property for a royalty fee), Contract Manufacturing(Production of goods by one firm, under the label or brand of another firm), Joint Ventures(Creation of a new company owner by the partners ), Direct Foreign Investment(Creation of a wholly owned foreign enterprise)

Nearshoring

relocation of business activities to a nearby location (usually country)

Offshoring

relocation of business activities to a far away location (usually developing countries)

Onshoring

relocation of activities within national borders

Impact of Global sourcing on communication

difficult with heavy paperwork

Impact of Global sourcing on visibility

more challenging to maintain

Impact of Global sourcing on labor costs

cheaper but rising

Impact of Global sourcing on freight movement

more expensive with more risks

Impact of global sourcing on lead time

more uncertainty with longer lead time

What does incoterms stand for

International Commercial Terms

What are the three types of cargo risk?

Physical damage, Theft, Environmental Damage

3 export preparation activities

Negotiating activities, Document Preparation, Protect the Goods

What are the options for determining the terms of trade

Negotiate every export step and process individually, Use Incoterms

Benefits of having standardized terms

Provides a consist level of knowledge and clarity to both parties involved, offer protection to both parties, limits negotiation time, clarifies cost, minimizes confusion, helps to manage risks

What does an incoterm look like

a 3 letter acronym with a location, The three letters convey all information regarding responsibility and payment for the sellers and buyers

What modes of transport are associated with Group 1 and Group 2 incoterms

Group 1(any mode of transport), Group 2(only for sea and inland waterway transport)

Know the description and responsibilities associated with Group E (departure terms),

Group F (main carriage unpaid), Group C (main carriage paid), and Group D (arrival)

Group E- the buyer has full responsibility, Group F- sellers are responsible for packaging the goods and transporting them to a specific location then the buyer is responsible for the rest of the journey, Group C- Sellers are responsible to transport goods all the way until the port of import then the buyer is responsible for the goods for the rest of the journey, Group D- The seller is responsible for the entire journey

What are the critical success factors for using documentation

Using the correct documents and ensuring they are accurate, having the documents on time, must establish the “importer of record” for accountability purposes

Know the different times required for electronic import manifests

Required 24 hours before loading at a port, Required 4 hours before arrival to the U.S. by air, Required 2 hours before arrival to the U.S. by rail, Required 1 hour before arrival to the U.S. by truck

5 types of documentation

Commercial invoice- must identify buyer and seller, Bill of lading- document of title to the goods, Insurance Certificate- assures the coverage of loss or damage to the freight during transit, Certificate of origin- verifies the country in which the goods were manufactured, Letter of Credit- guarantees the seller will receive payment as long as the delivery conditions are met

Know this

Longer distance traveled results in more opportunities for products to be damaged or stolen

3 customs clearance procedures

Import clearance, Export clearance, Special procedures

What are the three customs release methods?

Immediate Release, Document Review/Inspection, Comprehensive Examination

What are the three main activities associated with international transportation

Transporting the goods internationally, Clearing customs, Final delivery

4 main decisions related to international transportation

Mode of transportation, Shipping strategy, Clearing customs, Import duties

What are the considerations for choosing a mode of international transportation

Capacity, Transit time, Safety, Costs

What are the considerations for carrier selection in international transportation

Geographic coverage, Transit time, Reliability, Equipment Availability, Product Protection

Know this

it is important to monitor carrier performance and have a backup plan

Why is a straight line not always the best option for freight routing

another carrier may have benefits, border congestion, weather issues

Who manages the customs clearance process

U.S. Customs and Boarder Protection(CBP)

6 steps of the customs clearance process

Entry filling, arrival, examination, classification, taxation, release

What are customs brokers

3rd party logistics professionals hired by importers to interpret complex entry rules

Bonded warehouses

allows the importer to postpone the release of the goods

Foreign trade zones

sites in or near customs port of entry where foreign and domestic goods are held until they are ready for release

What are the challenges of final delivery

no direct move, limited access, congestion

recommended distance, advantages, and drawbacks of using trucks and rail for

domestic carriers

Trucks- less than 750 miles, product protection and reliability, limited capacity and higher costs

Rail- more than 750 miles, high efficiency and low costs, accessibility limitations and inconsistent service

What are the strategies for success regarding final delivery

Pre clear imports, Choose ports wisely, Monitor activity, Work with high quality carriers, create backup plans