SCM 300 chapter 7 & 8

Global Supply Chain Management

Managing suppliers, production, and distribution across countries.

Revenue Opportunities

Increasing profits by entering new markets and gaining customers.

Cost Opportunities

Reducing expenses through cheaper labor, resources, or taxes.

Global Brand Strategy

Deciding how to market and manage a brand across different countries.

Globalization Risks

Competition, legal differences, exchange rates, security, and communication.

Exchange Rate Risk

Currency value changes that affect international costs and profits.

Offshoring

Moving company operations to another country while keeping them in-house.

Outsourcing

Hiring another company to perform business activities.

Offshoring and Outsourcing

Hiring a foreign company to perform business activities.

Insourcing

Performing business activities within your own company.

Near-Sourcing

Using suppliers or production facilities geographically close to your market.

Contract Manufacturer

Outside company hired to manufacture products for another business.

Electronic Manufacturing Services (EMS)

Companies that manufacture electronic products and manage related supply chain work.

EMS Speed Advantage

Established facilities and expertise help products reach market faster.

EMS Quality Advantage

Existing quality controls and experienced production teams.

EMS Cost Advantage

Economies of scale reduce manufacturing costs.

EMS Flexibility Advantage

Ability to handle different production volumes.

EMS Supply Chain Advantage

Established suppliers, purchasing systems, and distribution networks.

Intellectual Property

Protected inventions, designs, technology, and business ideas.

Outsourcing Risks

Loss of control, quality problems, security concerns, and supplier dependence.

Infrastructure

Transportation, utilities, communications, and facilities supporting business.

Longshoreman

Dockworker who loads and unloads cargo from ships.

Port Operations

Handling, storing, inspecting, and transferring cargo at ports.

Port Congestion

Too much cargo or traffic causing delays and higher costs.

Customs

Government agency controlling goods entering and leaving a country.

Tariff

Tax charged on imported goods.

Import Regulations

Government rules controlling goods brought into a country.

Export Regulations

Government rules controlling goods shipped to other countries.

C-TPAT

Voluntary U.S. Customs program improving international supply chain security.

C-TPAT Tier 1

Company performs security risk analysis and addresses weaknesses.

C-TPAT Tier 2

U.S. Customs validates the company's security practices.

C-TPAT Tier 3

Highest security tier; follows supply chain best practices.

Third-Party Logistics (3PL)

Outside company that manages logistics activities for another business.

Freight Forwarder

Arranges efficient and cost-effective international shipping.

Customs House Broker

Helps shipments clear customs and meet import requirements.

Free Trade Zone (FTZ)

Area allowing goods to be stored or processed without immediate customs duties.

Duty Drawback

Refund of import duties when qualifying goods are later exported.

Bonded Warehouse

Customs-controlled storage where duties are delayed until goods are released.

Shipping Documents

Records supporting shipping instructions, ownership, and customs clearance.

Commercial Invoice

Document showing goods, buyer, seller, and transaction value.

Bill of Lading

Shipping contract and receipt that can serve as proof of title.

Packing List

Document listing shipment contents, quantities, and packaging.

Certificate of Origin

Document identifying the country where goods originated.

Shipper's Export Declaration (SED)

Export information used by U.S. Customs to track shipments.

Validated Export License

Government authorization required for certain controlled exports.

Export Classification

Identifying how an item is categorized under export rules.

ITAR

U.S. regulations controlling defense-related exports.

EAR

U.S. regulations controlling many commercial and dual-use exports.

Domesticating Products

Meeting domestic-content requirements so products qualify as domestic.

Social Responsibility

Operating ethically while considering society and the environment.

Corporate Social Responsibility (CSR)

A company's responsibility toward employees, communities, and the environment.

ESG

Environmental, Social, and Governance factors used to evaluate businesses.

Environmental Responsibility

Reducing pollution, waste, and harm to natural resources.

Social Responsibility in ESG

Protecting workers, customers, communities, and human rights.

Governance in ESG

Ethical leadership, transparency, accountability, and business oversight.

Legal Responsibility

Following laws, regulations, and required standards.

Ethical Responsibility

Doing what is fair and responsible beyond legal requirements.

Public Relations Motivation

Being responsible to protect reputation and customer trust.

Business Risk Motivation

Reducing risks from regulation, resource shortages, and climate change.

Business Opportunity Motivation

Using responsible practices to lower costs or attract customers.

Corporate Citizenship

A business acting responsibly toward society and its communities.

Supply Chain Social Responsibility

Ensuring ethical and sustainable practices throughout the supply chain.

Due Diligence

Investigating suppliers and operations to identify risks.

Supplier Code of Conduct

Rules suppliers must follow for ethical and responsible behavior.

Manufacturing Compliance

Following manufacturing laws, safety rules, and required standards.

Manufacturing Audit

Inspection of a factory's working conditions and compliance.

Fair Trade

Trading practices supporting fair pay and working conditions for producers.

SA8000

Social accountability standard focused on workers' rights and conditions.

Whistleblower Program

Safe way for employees to report unethical or illegal behavior.

Stakeholders

People or groups affected by a company's decisions.

Humanitarian Supply Chain

Delivering supplies and assistance to people during crises.

Humanitarian Logistics Challenges

Damaged infrastructure, uncertain demand, limited storage, and poor coordination.

Starbucks C.A.F.E. Practices

Program evaluating coffee suppliers and encouraging responsible farming.

Sustainability

Meeting present needs without harming future generations' ability to meet theirs.

Sustainable Supply Chain

Supply chain that limits environmental harm and supports long-term responsibility.

Closed-Loop Supply Chain

Supply chain that recovers products or materials for reuse or recycling.

Triple Bottom Line

People, Planet, and Profit.

Life Cycle Assessment (LCA)

Evaluating environmental impacts throughout a product's entire life.

The Sustainability Consortium

Organization developing tools and research to improve product sustainability.

SASB

Sustainability Accounting Standards Board; industry-specific sustainability reporting standards.

Carbon Footprint

Total greenhouse gas emissions associated with an activity or product.

Carbon Neutral

Balancing greenhouse gas emissions with equivalent removals or offsets.

ISO 14000

International standards for environmental management.

End-of-Pipe Solutions

Managing pollution or waste after it has been produced.

Cradle-to-Grave Design

Considering a product from manufacturing through disposal.

Cradle-to-Cradle Design

Designing products so materials can be recovered and reused.

Reduce

Use fewer resources and create less waste.

Reuse

Use an item again without major processing.

Recycle

Process used materials into new usable materials.

Reverse Logistics

Moving products backward for returns, repairs, recovery, or recycling.

Sustainable Procurement

Buying needed supplies while considering environmental and ethical impacts.

Sustainable Packaging

Packaging designed to reduce material use, waste, and transportation impacts.

Proactive Sustainability

Preventing environmental problems before they occur.

Reactive Sustainability

Responding to environmental problems after they occur.

Sustainability Challenges

Costs, regional differences, unreliable metrics, and supplier coordination.

Greenwashing

Making misleading claims about environmental responsibility.