chapter 7 study guide

profit motivations

-reach new customers
-manage risk of low sales by selling in multiple markets abroad

global brand strategy

-packaging laws
-accepted packaging conventions
-environmental requirements
-different distribution and retail systems

intellectual property

refers to copyrights, patents, trademarks, and other protectants of creative ideas of a company or creator.

offshoring

a company manufactures out of its home country to another country ( within company, abroad)

outsourcing

when a company contracts an outside firm to perform a service or operation for the business that could be or previously done in house (outside company, local)

offshoring & outsourcing

a company utilizes a contractor in another country to perform services and or operations (outside company, abroad)

contract manufacturers

a company that produces goods on behalf of another organization

near sourcing

offshoring and outsourcing where the location of the manufacturing facility is relatively close to the consumer (within company, local)

manufacturing audits

when companies examine if their manufacturing contractors are abiding by the contract/requirements

infrastructure

physical structures and equipment utilized to move goods as well as the organizations that support the movement of goods

shipping ports

-cargo port, cargo airport data
-port strategies
-port operations
-port security

customs and regulation considerations

government establish customs agencies to control the goods that enter and leave a country

Customers trade partnership against terrorism (C-TAPT)

a voluntary program developed by US customs and border protection for companies importing goods into the US.

third party logistics company (3PL)

a contractor that performs one or more logistic functions to move efficiently in supply chain. not buyer nor seller

freight forward

a contractor that helps organize the efficient and effective shipment of egads in the supply chain

customs house broker

contractor that helps a client good clear customs in a foreign country

(FTZ) free trade zone

geographic are sanctions by government where items are not under control of customs authorities

Incoterms

series of commercial terms, usually 3 letter acronyms established by the chamber of commerce to facilitate communication

shipping documentation

-transportation
-financial
-international shipments

commercial invoice

vital document that sums up the item being shipped and those involved

packing list

describes all items in box, including dimensions and weight

bill of landing

3 main purposes,
-contract between the shipper & carrier
-receipt of good for the shipper
-certificate of ownership

shippers export declaration

document used by the US gov to track all items exported from US

validated export license

export license required for items that are heavily policed bu the US gov, (ex. weapons, technology etc.)

certificate of origin

certifies the origin of which the good was manufactured.

duty drawback

utilized when an item is imported and then reexported, typically return of tariff

US exporting basics

1- which US agency controls this export?
2- classify your item
3- get a license
4-export upon receipt of customs approval

art of international commerce

-classify your item
-cosmetic products
-creative importing

(EMS) electronic manufacturing service industry

companies that can take on numerous primary supply chain responsibilities associated with the manufacturing of electronic components assembled end items

advantages of using EMS firm

-fast start, speed to market
-strong start, established quality control
-cost advantages, small orders possible
-flexibility, large volume or small orders

with shrinkage problems where do we start calculations?

retail