Suppl chain ch 7 and 8

Ofshoring

Manufacturing abroad and within the company

Outsourcing

Local manufacturing outside of the company

Offshoring and offsourcing

Manufacturing abroad and outside of the company

In-sourcing

Local manufacturing within the company

Near sourcing

Company moving its manufacturing, production, or business services to a nerby country or region.

Contract manufacturers

Having another company manufacture/ make your product

EMS industry

Electronic manufacturing services industry. Company that manufactures and (creates supply chains) electronics for different companies.

EMS Benefits

-Fast and strong start

-EMS figures out the entire supply chain instead of new company doing it themself and potentially messing up

-Cost advantages

Intellectual property

Creations of the mind; inventions, literary, and art, designs, symbols, names and images used in commerce (buinsess trades?)

longshorman

Port worker who loads and unloads cargo from ships

C-TPAT

Port security. Customs trade partnerships against terrorism.

-Voluntary for companies

3 tier system of C-PAT

1- must perform risk analysis

2- Validate tier 1 by us customs

3- Green lane → follow supply chain best practices

Duty drawback

Utilized when an item is exported and then re exported. Can get up to 90% return on tariff.

Bonded warehouse

Secure official storage facility where imported goods are kept without paying import taxes and duties right away

four common logistics documents

Bill of lading- Contract between the shipper and the carrier

Commercial invoice- Createde by the seller, shows the description of the items, payment terms, and value of goods

packing list- Details every item inside the package or container

certificate of origin- Confirms the country where the goods were made/ produced

FTZ

Free trade zones. Acceptable areas where items can enter the country duty free for storage, display, manufacturing etc

Freight forwarder

Helps get things out. Intermediary

Custom house broker

Helps get things in. Intermediary

3PL

Third party Logistics Company- Freight Forwarders and Custom House Brokers