International Business: Supply Chain Management

Questions and Answers

What are the five important aspects of supply chain management in international business, according to Daniels, Radebaugh, and Sullivan (2009)?

manufacturing strategy, information technology and the supply chain, quality management, supplier networks, and inventory management

What three factors should be considered when finding an appropriate manufacturing strategy in international business?

compatibility, configuration, and coordination and control of the manufacturing processes

What does compatibility mean in the context of manufacturing strategy?

That the manufacturing strategy fits the overall competitive strategy of the firm

What are the three approaches to configuration of manufacturing?

centralized, regional, and multidomestic approaches Signup and view all the answers

What is the primary purpose of coordination in supply chain management?

To ensure that the supply chain is functional in terms of purchasing materials, storage, production, assembly, and the delivery of products Signup and view all the answers

Why is information technology crucial in supply chain management?

To ensure a sufficiently functional supply chain, monitor coordination, and enable management to apply corrective measures Signup and view all the answers

What is the significance of establishing research and development units abroad in the context of supply chain management?

To accommodate production to local demands and ensure innovation and quality Signup and view all the answers

What is the significance of information technology systems in international business, and how do they impact a company's competitiveness?

Information technology systems are a decisive factor for success or failure in international business, providing a clear competitive edge to companies whose systems are an optimal match for their global operational set-up. Signup and view all the answers

What are the limitations of electronic data interchange in an increasingly rapidly changing global business environment?

Electronic data interchange has limitations in an increasingly rapidly changing global business environment as it does not offer the option of including new partners and can only exchange basic information. Signup and view all the answers

What advantage does enterprise resource planning have over electronic data interchange in terms of adaptability and flexibility?

Enterprise resource planning uses standardized software solutions that are more flexible and adaptable in dynamic environments, unlike electronic data interchange. Signup and view all the answers

How does radio frequency ID technology contribute to optimized resource planning in manufacturing?

Radio frequency ID technology reduces losses in production processes and allows for optimized resource planning in manufacturing by providing real-time tracking of materials along the supply chain. Signup and view all the answers

What is the primary advantage of e-commerce in terms of accessing a wide range of suppliers, using Amazon as an example?

E-commerce enables companies like Amazon to link with numerous suppliers, allowing customers to order products that are not stocked in bookshops, and enabling quick delivery. Signup and view all the answers

What is the major challenge accompanying the importance of information technology in supply chain management, particularly in developing countries?

The major challenge is the 'digital divide', where many developing countries lack the necessary infrastructure to support today's information technology, making it difficult to implement complex software solutions. Signup and view all the answers

How do extranets and intranets contribute to speeding up processes in supply chain management?

Extranets and intranets enable external and internal partners to directly access a company's information system, thereby speeding up processes considerably. Signup and view all the answers

What is the broad definition of supply chain management?

The coordination of materials, information, and financial resources from the initial raw materials supplier to the ultimate customer. Signup and view all the answers

What is the primary difference between logistics and supply chain management?

Logistics is a part of supply chain management, focusing on the sufficient flow and storage of materials, services, and related information, whereas supply chain management is a broader concept. Signup and view all the answers

What is the orientation of effective supply chain management?

Customer service needs, taking into account customer and supplier networks. Signup and view all the answers

What are the key issues involved in supply chain management?

Customer service needs, production site and distribution center planning, inventory management, logistics, business contracts, and information systems setup. Signup and view all the answers

Why is global supply chain management particularly challenging?

Due to differences in legal systems, cultures, and business customs across international markets. Signup and view all the answers

What is the importance of considering the supplier's supplier and the customer's customer in supply chain management?

It ensures a comprehensive approach to supply chain management, considering the entire value chain. Signup and view all the answers

What is the primary goal of effective supply chain management?

To ensure a smooth flow of materials, information, and financial resources on an international level. Signup and view all the answers

What is the primary reason why developing countries should be included in information technology for supply chain management?

To access new markets and generate growth while reducing production costs. Signup and view all the answers

What is the main objective of supply chain management?

The coordination of materials, information, and financial resources from the initial raw materials supplier to the ultimate customer. Signup and view all the answers

What aspect of supply chain management focuses on ensuring that products meet customer expectations?

Quality management. Signup and view all the answers

How does electronic data interchange contribute to the development of information technology in supply chain management?

By enabling the electronic exchange of business documents and data between organizations. Signup and view all the answers

What is the primary purpose of enterprise resource planning in supply chain management?

To integrate and manage all aspects of business operations, including supply chain management. Signup and view all the answers

How does radio frequency ID (RFID) technology support supply chain management?

By enabling real-time tracking and monitoring of inventory and shipments. Signup and view all the answers

What is the role of e-commerce in supply chain management?

To enable online transactions and connectivity between businesses and customers. Signup and view all the answers

What is the significance of supplier networks in supply chain management?

To establish relationships and collaborate with suppliers to achieve common goals. Signup and view all the answers

What is the primary goal of inventory management in supply chain management?

To maintain optimal inventory levels to meet customer demand. Signup and view all the answers

Study Notes

Supply Chain Management and International Business

Supply chain management is the coordination of materials, information, and financial resources from the initial raw materials supplier to the ultimate customer.
It involves considering not only suppliers and customers but also the supplier's supplier and the customer's customer.
In the context of global business activities, supply chain management is a challenging task due to differences in legal systems, cultures, and business customs.

Key Issues in Supply Chain Management

Customer service needs must be considered, including customer and supplier networks.
Production sites and distribution centers need to be planned accordingly, along with inventory management.
Logistics must be arranged, business worked out, and information systems set up.
The whole organization should be structured to serve supply chain management, with training provided where needed.
Control systems must be in place to monitor processes.

Aspects of Supply Chain Management

Manufacturing strategy
Information technology and the supply chain
Quality management
Supplier networks
Inventory management

Manufacturing Strategy

Compatibility: ensuring the manufacturing strategy fits the overall competitive strategy of the firm.
Configuration: distinguishing between centralized, regional, and multidomestic approaches to manufacturing.
Coordination and control: ensuring the supply chain is functional in terms of purchasing materials, storage, production, assembly, and delivery of products.

Information Technology and Supply Chain Management

Information technology is crucial for ensuring a functional supply chain in international business operations.
Examples of companies that rely on information technology for success include Amazon and Wal-Mart.
Four important aspects of information technology in supply chain management are:
- Electronic data interchange (EDI)
- Enterprise resource planning (ERP)
- Radio frequency ID (RFID)
- E-commerce and extranets/intranets

Electronic Data Interchange (EDI)

Used to exchange information between companies, suppliers, manufacturers, customers, and intermediaries.
Limited in its ability to adapt to changing business environments.

Enterprise Resource Planning (ERP)

Uses standardized software solutions that are more flexible and adaptable in dynamic environments.
Includes material requirement planning systems to help calculate required materials and initiate purchasing processes.

Radio Frequency ID (RFID)

Provides materials with electronic labels to track goods along the supply chain.
Captures data relating to origin, destination, and quantity of products, enabling companies to optimize resource planning.

E-commerce and Extranets/Intranets

E-commerce links companies with suppliers and customers.
Extranets and intranets enable external and internal partners to directly access a company's information system, speeding up processes.

The Digital Divide

The lack of necessary infrastructure in developing countries to support information technology hampers supply chain management.
This creates challenges for businesses trying to access these markets and reduce production costs.

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Description

Learn about the importance of supply chain management in international business, including the coordination of materials, information, and financial resources.