Class Notes (835,673)
United States (324,214)
33:799:301 (49)
James King (19)
Lecture 18

33:799:301 Lecture 18: 0018-IntrotoSupplyChain-2017-04-20

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Supply Chain Management
James King

Chapter 10 (Cont) Location Evaluation Techniques The Weighted-Factor Rating Model Compares the attractiveness of several locations along a number of quantitative and qualitative dimensions. - Identify the factors, Assign weights to each factor. The weights sum to 1, Determine a weighted score for each factor. - The location with the highest total weighted score is the recommended location. Total Cost Model Financial analysis when fixed and variable costs can be determined - Determine the fixed costs (land, taxes, insurance, equipment, buildings…) - Determine the unit variable cost (labor, materials, utilities, transportation…) - Construct the total expected cost formula for each location. - Determine the Total cost of each location based on planned production levels - Identify the range over which each location has the lower cost. International Trade Management 1. Opportunities and Challenges 2. Trade Legislation 3. Regulatory Authorities 4. Trade Compliance 5. Trade Intermediaries 6. Imports Process 7. Export Process 8. Penalties for Violations Global Supply Chain - Presents opportunities including increased revenue through global businesses, and increased sourcing options with more potential sources of supply to choose from including potential economic opportunities - Can also provide challenges – tariffs, transporting across borders, foreign markets are not homogenous even within the country International Trade Legislation - Global supply chains must comply with the ever changing laws and regulations in every country they do business. - Often countries impose conflicting regulations or different standards. Import and Export rules differ - US companies must also abide by regulations that impact their foreign operations - e.g. Foreign Corrupt Practices Act (FCPA), embargos, etc Total Compliance - A major concern as dozens of laws, regulations and rules must be checked and complied with for every import / export transaction - Millions of shipments enter the US annually; businesses violating trade regulations face fines of up to 40% of the value of the merchandise for “negligence,” which can mean simply making a paperwork mistake or keeping necessary records. Global Logistics Specialists - Companies can outsource custom clearance activities: - Import / Export Customs Brokers - Move global shipments through customs and handle all required documentation on behalf of the company. - Company handles the financial transaction directly based on the broker’s instructions - Trading Companies / Import Merchants - Put buyers and sellers from different countries together and handle export/import arrangements, documentation and transportation buy purchasing in the sellers market, handling the export and import, and selling in the buyers market. Homeland Security - DHS is the government agency who’s mission is to: - Prevent terrorist attacks within the United States - Reduce America's vulnerability to terrorism - Minimize the damage from potential attacks and natural disasters st - On March 1 2003, DHS assumed responsibility for securing our nation's borders and transportation systems at 328 official ports of entry. - The Department's first priority is to prevent the entry of terrorists and the instruments of terrorism, while simultaneously ensuring the efficient flow of lawful traffic and commerce. US Customs and Border Protection - Originally established in 1789, U.S. Customs and Border Protection (CBP) controls the import process - It is the gateway agency for more than 20 other government agencies each of which has some control over various aspects of international trade. - Its’ mission is to safeguard America’s borders thereby protecting the public from dangerous people and materials
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