Global Supply Chain Integration

CHAPTER 3
GLOBAL SUPPLY CHAIN

SUBTOPIC

1. Global Supply Chain

Integration

2. Global Sourcing

3. Global Compliance

4. Impact of Globalization

GLOBAL SUPPLY CHAIN INTEGRATION

TPL

Specialist

company that

provides a

range of

distribution,

storage,

transport and

fulfillment
services to
customers.

Terminal

Terminal, ports
and depots are

location

managed for

logistics.

Forwarders

Carrier

administers,
managers

and

organizers

Arrange the
movement of
the cargo to

its final

destination

point

Equipment

provider

Physical

infrastructure

and assets

Government

National
security

Customs

Multiple Choice

Which entity provides various transportation, warehousing, and value-added services as a core part of the supply chain?

• a) Terminal

• b) Forwarder

• c) Equipment provider

• d) Logistic service provider (LSP)

Multiple Choice

•What role does an equipment provider fulfill in the global supply chain?

• Coordinating customs clearance

• b) Offering financial assistance

• c) Providing transportation services

• d) Supplying essential infrastructure and tools for logistics and transportation

Multiple Choice

What is the role of terminal in the global supply chain?

• Providing transportation services

• Handling customs clearance

• Offering financial assistance

• •Serving as a location for loading and unloading cargo from various modes of transportation

Multiple Choice

What is the primary role of a third-party logistics (3PL) provider in the supply chain?

• a) Managing customer relationships

• b) Coordinating material handling

• c) Offering financial services

• d) Outsourcing various logistics functions on behalf of a company

Multiple Choice

Which entity is responsible for the movement and distribution of goods on behalf of exporters and importers?

• a) Government and customs

• b) Equipment provider

• c) Terminal

• d) Forwarder

MODE OF ENTRY :

• EXPORTING AND IMPORTING

• LICENSING AND FRENCHISING

• JOINT VENTURE

• FOREIGN DIRECT INVESTMENT

Multiple Choice

What distinguishes a joint venture from other modes of entry to global markets? .

• a) Joint ventures involve full ownership of a foreign company.

• b) Joint ventures focus solely on exporting goods

• c) Joint ventures involve a partnership between a local and foreign entity.

• d) Joint ventures require minimal financial resources.

Multiple Choice

Which mode of entry allows a company to control and manage its operations in a foreign market by owning a subsidiary?

• a) Importing and exporting

• b) Licensing and franchising

• c) Joint venture

• d) Foreign direct investment

Multiple Choice

Which entity is responsible for regulating imports, exports, and trade compliance within a country's borders? (LSP)

• a) Forwarder

• b) Logistic service provider

• c) Terminal

• d) Government and customs

GLOBAL SOURCING
(LOW-COST COUNTRY)

ADVANTAGES LOW-COST-
COUNTRY SOURCING

• Low wages rates

• Increase competitive pressure

• Firm exposure to process

technology

• Facilitate sales in international

country

DISADVANTAGES LOW-COST-
COUNTRY SOURCING

• Challenges to identify the quality

and quantity required

• Protection of firm’s intellectual

property

• Import/export compliance issue

• Communication issues

• Guarantee the security of product

issues

• Inventory obsolesces risk

Multiple Choice

What is one primary advantage of global sourcing for companies seeking cost savings?

• a) Enhanced supply chain visibility

• b) Increased transportation costs

• c) Access to lower-cost labor and materials

• d) Greater control over local markets

Multiple Choice

Which of the following is an advantage of global sourcing when dealing with seasonal demand fluctuations?

• a) Increased lead times

• b) Reduced supply chain flexibility

• c) Enhanced ability to respond to demand changes

• d) Limited access to varied suppliers