Global Supply Chain Management Overview
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Global Supply Chain Management Overview

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Questions and Answers

What is the primary objective of global supply chain management?

  • To strengthen local supply chains
  • To create net value via different activities (correct)
  • To increase production speed
  • To minimize operational costs

    • What does the term 'value chain' refer to in global supply chains?

  • The total profit earned from a product
  • The number of suppliers involved in product manufacturing
  • The value added to a product as it progresses through supply chain stages (correct)
  • The cost of production minus the sale price

    • What significant challenge has affected global supply chains recently?

  • Decreased demand for global trade
  • Rising costs of raw materials due to inflation
  • Increased competition in local markets
  • COVID-19 pandemic causing disruptions (correct)

    • Which approach is necessary for effectively managing global supply chains?

    <p>Integrating global networks of organizations</p> Signup and view all the answers

    What has been a trend affecting the manufacturing sector in Western countries?

    <p>Steady shrinking in their manufacturing share of the global economy</p> Signup and view all the answers

    To remain competitive, what must Western manufacturers do?

    <p>Implement changes to enhance productivity</p> Signup and view all the answers

    What is one of the logistical issues that global supply chain management must address?

    <p>Balancing supply and demand across multiple regions</p> Signup and view all the answers

    What factor has helped Western manufacturers stay afloat in business?

    <p>Higher productivity</p> Signup and view all the answers

    What is the role of first-tier suppliers in a supply chain?

    <p>They provide products directly to the primary organization.</p> Signup and view all the answers

    Which of the following correctly describes wholesalers?

    <p>They receive goods directly from manufacturers and sell to retailers.</p> Signup and view all the answers

    What is the purpose of reverse logistics?

    <p>To manage the return of goods from final customers to manufacturers.</p> Signup and view all the answers

    Which statement about logistics in a supply chain is accurate?

    <p>Logistics plays a key role after procuring raw materials and before distribution.</p> Signup and view all the answers

    What distinguishes retail distribution from wholesaling?

    <p>Retailers sell to end consumers, while wholesalers sell to retailers.</p> Signup and view all the answers

    Which of the following best describes multichannel systems in supply chains?

    <p>Offering more than one channel for distribution to customers.</p> Signup and view all the answers

    What is a benefit of offshoring for companies?

    <p>Lower operational costs</p> Signup and view all the answers

    What is the significance of strategic decisions in supply chain management?

    <p>They can influence downstream decisions that need to be aligned.</p> Signup and view all the answers

    When evaluating supply chain decisions, what levels should be examined for alignment?

    <p>Strategic, tactical, and operational levels should all be considered.</p> Signup and view all the answers

    Which factor is not considered a risk of outsourcing?

    <p>Increased operational control</p> Signup and view all the answers

    What is one of the key advantages of nearshoring?

    <p>Operations in the same time zone</p> Signup and view all the answers

    Which of the following defines reshoring?

    <p>Bringing manufacturing operations back to the home country</p> Signup and view all the answers

    What is one of the risks associated with offshoring?

    <p>Job loss in the home country</p> Signup and view all the answers

    Which of the following has been a driver of globalization?

    <p>World Trade Organization's trade rules</p> Signup and view all the answers

    What is a significant result of globalization for businesses?

    <p>The ability to operate anywhere in the world</p> Signup and view all the answers

    What is a disadvantage of nearshoring?

    <p>Potentially higher costs</p> Signup and view all the answers

    Which of the following is NOT a driver of globalization?

    <p>Rigid supply chain structures</p> Signup and view all the answers

    What could lead to a company's decision to reshore its operations?

    <p>Rising labor costs and quality concerns abroad</p> Signup and view all the answers

    What has enhanced the interaction between global customers and companies?

    <p>The global economy</p> Signup and view all the answers

    Which transportation method had the highest speed from 1500 to the 1840s?

    <p>Human-powered ships</p> Signup and view all the answers

    How did the development of jet aircraft affect globalization?

    <p>Increased the speed of global connectivity</p> Signup and view all the answers

    Which statement best reflects a result of reliable sources of supply?

    <p>It allows businesses to respond quickly to demand changes</p> Signup and view all the answers

    What historical transportation method marked the fastest speeds in the period of early 1900s to today?

    <p>Propeller airplanes</p> Signup and view all the answers

    Why do businesses seek access to the latest trends and technologies in the context of globalization?

    <p>To enhance their competitive edge</p> Signup and view all the answers

    Which factors are presently affecting global supply chains?

    <p>Trade wars between countries</p> Signup and view all the answers

    What is one of the key topics covered in the course schedule related to supply chains?

    <p>Identifying key drivers impacting global supply chains</p> Signup and view all the answers

    During which session is the focus on current challenges supply chains are facing?

    <p>Week 3 sessions</p> Signup and view all the answers

    What does the PESTLE analysis help understand?

    <p>Political and economic factors impacting business</p> Signup and view all the answers

    Which session of the course involves a team formation activity?

    <p>Week 1</p> Signup and view all the answers

    What aspect of global supply chains is being evaluated through guided coaching?

    <p>Status updates of project work</p> Signup and view all the answers

    What is emphasized in the session focusing on Mexico's context regarding supply chains?

    <p>Industry-level management of supply chains</p> Signup and view all the answers

    What is one of the deliverables mentioned for the course?

    <p>Project work status updates</p> Signup and view all the answers

    What is a current component affecting global supply chains that involves government intervention?

    <p>Return of industrial policy</p> Signup and view all the answers

    What is one expected outcome from discussing global supply chains in breakout rooms?

    <p>Identifying supply chain conflicts</p> Signup and view all the answers

    Which country had the highest number of companies listed in the Fortune Global 500?

    <p>United States</p> Signup and view all the answers

    What was a reported significant change in Mexico's trade partnerships from 2000 to 2020?

    <p>Stronger ties with Asian economies</p> Signup and view all the answers

    What is one of the key factors that can make a country competitive in the global market?

    <p>Access to advanced technologies</p> Signup and view all the answers

    Which of the following trends has been observed in the report regarding Mexico as a competitive location?

    <p>Increase in manufacturing jobs</p> Signup and view all the answers

    What is a primary concern impacting companies' supply chain decisions?

    <p>Increased logistics costs</p> Signup and view all the answers

    What percentage of assembled parts must originate in member states according to the USMCA/T-Mec Agreement?

    <p>75%</p> Signup and view all the answers

    What sector has seen significant foreign direct investment (FDI) from 2000 to 2022 in Mexico?

    <p>Automotive</p> Signup and view all the answers

    Which challenge does Mexico face related to its human resources?

    <p>Developing and better remunerating talent</p> Signup and view all the answers

    Which of the following is a projected investment amount for EV auto parts in Mexico over the next few years?

    <p>$15 billion</p> Signup and view all the answers

    What is one significant issue related to infrastructure that Mexico faces?

    <p>Energy infrastructure challenges</p> Signup and view all the answers

    How much foreign direct investment (FDI) is estimated for Mexico in 2024?

    <p>$38 billion</p> Signup and view all the answers

    What has been the percentage of new investor companies in FDI in the last four years in Mexico?

    <p>7%</p> Signup and view all the answers

    What is one main factor affecting operational costs in Mexico?

    <p>Security issues</p> Signup and view all the answers

    Study Notes

    Global Supply Chains

    • A network of interconnected organizations that aims to create net value through various activities
    • Value chain: a series of steps where value is added to a product as it progresses through different stages
    • The COVID-19 pandemic has caused disruptions to supply chains globally

    What Is Global Supply Chain Management

    • A process to efficiently integrate a global network of organizations
    • It involves dealing with the challenges and deciding on an outsourcing plan
    • There are various logistical issues to consider
    • There has been a steady reduction in manufacturing share in Western economies
    • Western manufacturers have successfully maintained business due to higher productivity
    • Companies need to make changes to thrive in a highly competitive environment

    Global Supply Chain Structures and Partners

    • First-tier suppliers: provide products directly to the primary organization
    • Second-tier suppliers: support first-tier suppliers' production processes
    • Wholesalers and retailers:
      • Wholesalers receive goods directly from manufacturers and sell to retailers
      • Retailers sell goods to end consumers
    • Multichannel systems: Offer more than one channel of distribution to customers
    • Storage: Use of warehouses to store products, components, or materials.

    Logistics

    • Plays a crucial role in procuring raw materials and producing finished goods
    • Involves multitier suppliers, agents, and agencies
    • Reverse logistics:
      • The movement of goods from the final customer to the distributor or manufacturer

    Key Drivers of Supply Chains: Globalization

    • The global economy leads to direct interaction between global customers and companies
    • Globalization enables businesses to operate anywhere in the world
    • Allows businesses of all sizes to meet the needs of global consumers

    Phases of Globalization

    • The death of distance refers to the reduction of travel time and cost due to technological advancements in transportation

    Drivers of Globalization

    • Lower costs and access to global markets
    • The ability to quickly respond to changes in demand
    • Reliable sources of supply
    • Access to the latest trends and technologies

    The Globalization of Business

    • The formation of the European Union led to strict quality and environmental standards for companies
    • The North American Free Trade Agreement (TMEC/USMCA) established a free-trade zone
    • The World Trade Organization expanded the scope of international trade rules
    • Offshoring: A company has full control over operations performed in another country
      • Benefits: Lower costs, access to a larger pool of skilled labor, and so on
      • Risks: Transfer of jobs to other countries, geopolitical risk, and so on
    • Nearshoring: A company outsources work to a geographically closer country
      • Benefits: Operations in the same time zone, fewer cultural differences, and so on
      • Risks: Fewer providers, higher costs, and potential cultural differences
    • Outsourcing: Hiring a third party on a contractual basis
      • Enables a company to focus on core competencies
      • Risks: Loss of sensitive information and confidentiality, poor quality, and so on

    Reshoring

    • Reshoring is the process of bringing back a company's manufacturing operations to its home country
    • Factors responsible for the decline of offshoring include:
      • Rising labor costs, quality and intellectual property theft, and long supply chains
    • The trend of reshoring appears to be greater in the United States

    Breakout Room Discussion

    • Topics to discuss:
      • Impact of trade wars on global supply chains
      • The return of industrial policy
      • Impact of conflicts on global supply chains
      • Impact of technological advancements on supply chains

    World Economic Outlook in 2050

    • Mexico is predicted to be the 15th largest economy in the world by 2050.

    GDP 2020 Nominal – World Bank

    • Mexico has a GDP of 1.27 trillion USD (2020)

    WEF – Global Competitiveness Report 2019

    • Mexico ranked 58th in the world for global competitiveness.
    • Mexico ranked 80th in the world for innovation.
    • Mexico ranked 65th in the world for business sophistication.
    • Mexico ranked 62nd in the world for infrastructure.

    FORTUNE GLOBAL 500

    • There are 4 companies headquartered in Mexico on the Fortune Global 500 list.

    Main Trade Partners Comparison 2000 x 2020

    • In 2020, the US accounted for 78% of Mexican exports.
    • In 2020, the US accounted for 53% of Mexican imports.

    What makes a country attractive/competitive?

    • Institutions and Legislation
    • Labor – Talent – Knowledge
    • Location
    • Resources – natural endowments
    • Culture – Values
    • Trade and Investment Agreements
    • Size of the Domestic Market
    • Pre-existing Supply Chain

    Mexico, the Diamond, Chance and Government

    • Mexico has a young and growing population, and a rich natural resource base.
    • Mexico has a strong manufacturing sector and a strategic location close to the United States.
    • The Mexican government is investing in infrastructure and education.
    • The Mexican government has implemented various policies to support economic development.

    FDI in Mexico – 2000 to 2022

    • Mexico has accumulated 671 billion USD in FDI.
    • FDI in 2023 is estimated to be 36 billion USD.
    • FDI in 2024 is estimated to be 38 billion USD.
    • Major sectors attracting majority of investment: automotive, metal-mechanic, machinery, medical devices and equipment, domestic appliances, and electronic equipment.

    Challenges for Mexico

    • Diversification of exports
    • Development coordination
    • High value-added economic sectors
    • Energy infrastructure
    • Water shortages
    • Housing shortage
    • Operational costs increased by 2% to 3% due to security issues.
    • Develop and better remunerate human resources
    • Corruption
    • Rule of Law
    • Mexico has a large and growing automotive industry.
    • The USMCA/T-Mec Agreement dictates that 75% of assembled parts must originate in member states.
    • Investments are expected to reach 15 billion dollars in EV auto parts in the next few years.
    • EV production increased from 79,471 units in 2022 to 223,640 in 2023.
    • General Motors, Ford Motor, Stellantis, BMW, KIA, Tesla, Volkswagen, and Nissan are producing EVs in Mexico.

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    Description

    Explore the intricacies of global supply chains and the management processes involved in integrating various organizations to create value. This quiz covers the impact of challenges like the COVID-19 pandemic and examines supply chain structures. Test your knowledge on how companies adapt in a competitive environment!

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