SCM 4350 Midterm: Exam 2 Outline

• School: University of Houston
• Department: Supply Chain Management
• Course: SCM 4350
• Professor: Tibodeau Dale

Document Summary

The future of global supply management"s trends include: World financial markets are closely linked through 24/7-hour trading. International business is no longer limited to large multinational corporations. Manufacturing firms in developing countries have improved their capabilitie\ The caps study referenced in the book found that on average, respondents achieved cost reductions of 19 percent and a total cost of ownership reduction of 12% Also states that main reason is to reduce costs. The main reasons for global sourcing is the desire to reduce costs. China, india, eastern europe and brazil will continues to gain importance as sources of supply over the next five years. Sourcing from u. s. , canadian and western european markets will decline. The simplest and usually the quickest way to source globally is through the use of an intermediary. Allos for personal contact, better understanding of local conditions, and onsite support. Preferred method of payment is after receipt and inspection of the goods.