Understanding Global Supply Chain Strategies

The video discusses the impact of the COVID-19 pandemic on global supply chains, causing delays and increased costs. It explores strategies like regionalization, nearshoring, and reshoring to mitigate risks. Examples include Timberland's global supply chain and Benetton's shift to closer manufacturing. While these strategies can reduce disruptions, they are costly and complex, requiring careful consideration of costs versus benefits.

What has been a major cause of global supply chain disruptions during the COVID pandemic?

• Global supply chain complexity

• Shipping container shortages

• Natural disasters

• Increased consumer demand

Which company is used as an example to illustrate a global supply chain?

• Puma

• Adidas

• Timberland

• Nike

What is a potential risk at every step of a global supply chain?

• Excessive inventory

• Disruption in manufacturing or transport

• Lack of skilled labor

• Increased production costs

What is the main goal of regionalization in supply chain management?

• To enhance product quality

• To reduce production costs

• To minimize risk by supplying products to nearby markets

• To increase global market reach

What does nearshoring involve?

• Outsourcing production to a third party

• Increasing production capacity

• Bringing production closer to the market

• Moving production to a different continent

Which company is mentioned as increasing manufacturing in Europe due to supply chain issues?

• Zara

• H&M

• Benetton

• Gucci

What is reshoring?

• Increasing production in existing facilities

• Moving production to a new country

• Outsourcing production to a cheaper location

• Bringing manufacturing back to the original country

What is a significant challenge of moving production closer to home?

• Decreased product quality

• Increased transportation time

• High costs

• Lack of skilled labor

How much could it cost U.S. and European companies to move manufacturing out of China over five years?

• $2 trillion

• $750 billion

• $1 trillion

• $500 billion

What must companies consider when deciding to move production domestically?

• Cost of delays versus domestic production costs

• Consumer preferences

• Local government regulations

• Availability of raw materials