International Supply Chain Management Quiz
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Questions and Answers

What is the primary aim of global sourcing?

  • To exclusively source materials from countries with the lowest labor costs.
  • To coordinate procurement requirements of worldwide business units and to use comparative advantages. (correct)
  • To prioritize local suppliers over international providers.
  • To centralize all procurement activities within a single geographic location.

Which of the following locations are explicitly mentioned as being used for manufacturing and assembly by Volkswagen AG?

  • Europe, India, China
  • Europe, North America, South Africa, Japan
  • Europe, North America, South America, South Africa (correct)
  • Europe, South America, China

According to the provided material, modern logistics systems must adapt primarily to which of the following factors?

  • Changes in society and new economic concepts. (correct)
  • Political instability in developing nations.
  • Advances in automation technologies.
  • Fluctuations in global stock markets.

Which of these is NOT listed as a typical location for Volkswagen AG's activities?

<p>Manufacturing in Japan (A)</p> Signup and view all the answers

What is stated as a goal in global supply chain management?

<p>To maximize customer value through locating different parts of the value chain in different countries. (C)</p> Signup and view all the answers

According to the course overview, which of these topics is covered under 'International Supply Chain Management'?

<p>In-plant material flow and production systems (C)</p> Signup and view all the answers

What is a key aspect of Supply Chain Management (SCM), as defined according to the lecture?

<p>Coordination and collaboration with channel partners (A)</p> Signup and view all the answers

Which of these areas is MOST specifically related to the activities of SCM?

<p>Integrated logistics, procurement, materials management and production (D)</p> Signup and view all the answers

Which country is the world's largest producer of clothing and footwear?

<p>China (A)</p> Signup and view all the answers

Within the context of the course, what does 'strategic procurement' primarily involve?

<p>Aligning procurement activities with long-term company goals. (B)</p> Signup and view all the answers

Approximately what percentage of the world's watches and clocks are produced in China?

<p>80% (C)</p> Signup and view all the answers

What is 'low cost country sourcing' (LCCS) primarily concerned with?

<p>Purchasing in countries with low production costs (C)</p> Signup and view all the answers

What aspect of supply chains is DIRECTLY related to 'global tracking and tracing'?

<p>Distribution logistics (C)</p> Signup and view all the answers

Besides planning and management, what else does SCM encompass, according to the lecture?

<p>Coordination and collaboration with channel partners (B)</p> Signup and view all the answers

Which of the following is NOT a primary reason for relocating production abroad?

<p>Increased coordination costs (A)</p> Signup and view all the answers

What is the most prominent motive for research and development (R&D) investments abroad according to the provided data?

<p>Supplementing production location abroad (D)</p> Signup and view all the answers

What is one purpose of the 'International Supply Chain Management' course?

<p>To provide an overview of structures, aims, systems and strategies concerning International Supply Chain Management (A)</p> Signup and view all the answers

Within SCM, what does 'disposal logistics' primarily concern?

<p>The handling and removal of waste. (D)</p> Signup and view all the answers

What does the term 'backshoring' refer to in the context of supply chain management?

<p>Returning production and operations to the company's home country (B)</p> Signup and view all the answers

According to the data, what is the main reason why companies opt for backshoring?

<p>Flexibility (D)</p> Signup and view all the answers

Which of the following examples represents a problem that leads to backshoring?

<p>Frequent power outages (A)</p> Signup and view all the answers

Which of these is an issue that companies face that is not mentioned in the text as a reason for backshoring?

<p>Increased coordination costs (C)</p> Signup and view all the answers

What percentage of companies, according to the text, are currently backshoring?

<p>20% (B)</p> Signup and view all the answers

Which of the following best describes the primary purpose of the SCOR model?

<p>To create a standardized approach for process chains within and between companies. (A)</p> Signup and view all the answers

According to the SCOR model, which process is NOT a primary process?

<p>Marketing Forecasts (B)</p> Signup and view all the answers

What is the focus of Level 1 within the SCOR model?

<p>Describing the number of supply chains and the metrics used to measure their performance. (D)</p> Signup and view all the answers

At which hierarchical level of the SCOR model would you find the 'determination of business processes, orders, permissions, redeliveries and marketing forecasts'?

<p>Level 3 (C)</p> Signup and view all the answers

Which of the following options are described in Level 2 of the SCOR model?

<p>Definition of the sequence of planning and implementation processes related to material flows (A)</p> Signup and view all the answers

What concept does the SCOR model combine into a coherent reference system?

<p>Business process optimization, performance indicators, and business practices. (C)</p> Signup and view all the answers

According to the content given, which of these is NOT explicitly mentioned as a benefit of the SCOR model?

<p>Improved logistics management. (A)</p> Signup and view all the answers

What aspect of supply chains is characterized by the SCOR model regarding process elements?

<p>Sequence of planning and implementation of material flows. (C)</p> Signup and view all the answers

Which logistics company ranks highest in Germany?

<p>Deutsche Bahn AG (D)</p> Signup and view all the answers

Which company is listed as the top logistics company worldwide?

<p>Deutsche Post World Net (B)</p> Signup and view all the answers

Which of the following companies is ranked third in Europe?

<p>Kühne + Nagel (A)</p> Signup and view all the answers

What megatrend is characterized by shortened product lifecycles?

<p>Individualization (C)</p> Signup and view all the answers

Which logistics company ranks second in Germany?

<p>Deutsche Post World Net (B)</p> Signup and view all the answers

In terms of shareholder value thinking, which factor is commonly associated with environmental considerations?

<p>Globalization of climate change (D)</p> Signup and view all the answers

Which logistics company ranks fifth worldwide?

<p>Deutsche Bahn Group (B)</p> Signup and view all the answers

Which factor is a characteristic of the globalization of climate change?

<p>Environmentalism (A)</p> Signup and view all the answers

What does logistics efficiency measure?

<p>The ratio of system output to system input (D)</p> Signup and view all the answers

Which of the following are considered inputs in a logistics system?

<p>Evaluated factor input (B)</p> Signup and view all the answers

Which of the following best describes the primary goal of logistics?

<p>To optimize logistics efficiency through the 6 'r's (D)</p> Signup and view all the answers

Which of the following is NOT one of the 6 'r's of logistics?

<p>Right facility (A)</p> Signup and view all the answers

What would likely be a task related to procurement logistics?

<p>Sourcing raw materials (D)</p> Signup and view all the answers

Which aspect is important for achieving logistics optimization?

<p>Balancing cost, time, and quality (D)</p> Signup and view all the answers

In the context of logistics, what encompasses system output?

<p>Right product at the right time (A)</p> Signup and view all the answers

Which cost is NOT commonly associated with logistics operations?

<p>Marketing costs (B)</p> Signup and view all the answers

Flashcards

Supply Chain Management

The process of planning and managing all activities involved in obtaining raw materials and finished products, converting them into usable goods, and delivering them to the customer. It also includes coordinating and collaborating with partners in the supply chain.

International Supply Chain Management (ISCM)

A type of supply chain management that focuses on international operations, including sourcing, manufacturing, and distribution across different countries.

Procurement

The process of acquiring goods and services from external sources, including sourcing, negotiating prices, and managing supplier relationships.

Materials Management

The process of planning, implementing, and controlling the flow and storage of materials within a company, from raw materials to finished goods.

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Production

The process of converting raw materials into finished goods, including production planning, scheduling, and quality control.

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Logistics

The process of tracking and managing the movement of goods from the point of origin to the final customer, including transportation, warehousing, and handling.

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Inventory Management

The process of managing the storage and handling of materials within a company.

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Logistics Controlling

The process of controlling and measuring the performance of the supply chain, including identifying areas for improvement and optimization.

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SCOR Model

A framework that combines elements of business process optimization, performance metric comparison, and best practices to provide a standardized reference model for supply chain operations.

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SCOR Model Processes

The SCOR model categorizes the supply chain into five core processes: Plan, Source, Make, Deliver, and Return.

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SCOR Model Level 1

Level 1 of the SCOR model defines the scope and content of supply chains and outlines performance measurements.

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SCOR Model Level 2

Level 2 of the SCOR model outlines the sequence of planning and implementation processes for material flows.

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SCOR Model Level 3

Level 3 of the SCOR model delves into the specific business processes, orders, permissions, redeliveries, and marketing forecasts.

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SCOR Model Standardization

The SCOR model is a valuable tool for standardizing process chains within and between companies, enabling consistent and efficient supply chain operations.

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Purchasing and Procurement Management

Purchasing and procurement management involve finding the best suppliers, negotiating contracts, and managing the acquisition of goods and services.

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Offshoring

Offshoring refers to relocating production, research, or design activities to other countries, often to take advantage of lower costs or specialized skills.

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Global Sourcing

The process of coordinating and integrating procurement requirements across all branches of a multinational company.

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Global Separation

The practice of locating parts of a company's value chain in different locations to leverage cost advantages, lower taxes, and access specialized talent.

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Megatrends in Logistics?

Megatrends in society and the economy are driving changes in logistics and supply chain management.

Examples of these megatrends include:

  • Globalization
  • Technological advancements
  • Changing consumer demands
  • Environmental concerns
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Adaptability in Logistics

Modern logistics systems need to adapt to the changing demands of society and the economy to remain competitive.

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Comparative Advantages

The benefits of locating parts of a company's value chain in different locations, such as lower labor costs, material costs, and taxes.

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Globalization

The increasing interconnectedness of economies, cultures, and societies around the world, often leading to trade, communication, and technological advancements.

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Climate Change

A long-term trend of change in human activities, impacting the global environment and climate. It's characterized by increased greenhouse gas emissions and rising global temperatures.

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Material Streams

The process of managing the flow of materials from their source to the final consumer. It involves activities like procurement, production, and distribution.

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Shareholder Value Thinking

A business strategy focusing on the financial value of a company for its shareholders. It prioritizes maximizing profits and shareholder returns.

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Differentiation & Individualization

The unique characteristics and preferences of individual customers. Companies need to cater to these differences to gain a competitive advantage.

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Customer Centricity

A key concept in marketing that focuses on understanding and meeting the needs and wants of individual customers by providing them with tailored products and services.

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Demographic Change

The changes in a population's size, age, gender, and other characteristics over time. It can impact consumer behavior and demand for different products and services.

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Environmentalism

A business and societal concept that focuses on reducing environmental impact and promoting sustainable practices.

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Low Cost Country Sourcing (LCCS)

The practice of sourcing products and services from countries with lower production costs.

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Backshoring

The process of bringing back production, research, or design operations to the original country.

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Reasons for Relocation Abroad

Reasons why companies choose to relocate operations to another country, often driven by factors like lower labor costs or closer proximity to markets.

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Motives for Research and Development Investments Abroad

Reasons why companies invest in research and development in another country, often driven by factors like access to skilled talent or better research infrastructure.

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Reasons for Backshoring

Flexibility, high capacity utilization, quality control, and better coordination are among the factors that drive companies to bring back operations from abroad.

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Examples of Problems Leading to Backshoring

Delayed product deliveries, customs issues, and unexpected price increases are some of the challenges businesses may face when offshoring.

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What is the primary goal of logistics?

The main goal of logistics is to ensure that the right product is delivered to the right location, in the right quantity, at the right time, in the right quality, and at the right cost.

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What is logistics efficiency?

Logistics efficiency measures how well a logistics system uses resources to achieve desired outcomes. It's calculated by dividing system output by system input.

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What are the components of system input in logistics?

System input includes all the resources and factors that go into the logistics process, like inventory costs, storage costs, operational costs, and control costs.

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What is the logistics system?

The logistics system encompasses the entire process of managing goods, from procurement to distribution and disposal. It includes procurement logistics, production logistics, distribution logistics, and disposal logistics.

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What are the components of system output in logistics?

The output of the logistics system represents the desired outcomes, delivered according to the 6 'R's' of logistics: right product, right place, right quantity, right time, right quality, and right cost.

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What are the tasks of logistics?

Tasks of logistics are often referred to as the '6 Rs' of logistics. These include delivering the right product, to the right place, in the right quantity, at the right time, in the right quality, and at the right cost.

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What is procurement?

Procurement involves finding the best suppliers, negotiating contracts, and managing the acquisition of goods and services.

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What is offshoring?

Offshoring is relocating production, research, or design activities to other countries, often to take advantage of lower costs or specialized skills.

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Study Notes

Integrated Logistics, Procurement, Materials Management and Production

  • This lecture covers the basics of International Supply Chain Management (ISCM)
  • It outlines structures, aims, systems, and strategies of managing an international supply chain.

Lecture Topics

  • Integrated logistics, procurement, materials management, and production within an enterprise
  • Material inventory and material requirements
  • Strategic procurement and purchasing management
  • In-plant material flow and production systems
  • Distribution logistics globally, including tracking and tracing
  • International transport modes
  • Disposal logistics
  • Logistics controlling
  • Network design in supply chains
  • Global logistics structures and supply chains
  • IT systems in supply chain management
  • Sustainable supply chain management

Supply Chain Management (SCM)

  • SCM encompasses all activities related to sourcing, procurement, conversion, logistics, and coordination.
  • It involves collaboration with channel partners to integrate supply and demand.
  • SCM integrates supply and demand management within, and across, companies.

Lecture 01 Objectives

  • Describe Supply Chain Management
  • Understand the meaning of logistics and procurement
  • Learn the terms, definitions, objectives, and tasks of logistics

Agenda (Lecture 01)

  • Introduction to supply chain management
  • Purchasing and procurement management
  • Offshoring of production, research, and design
  • Terms and definitions, goals, and tasks of logistics
  • Logistics and material management positioning
  • Logistics as a cross-functional area
  • Goals and success factors in logistics

Supply Chain Definition

  • A global network delivering goods and services, starting from raw materials to consumers.
  • This network includes information flow, physical distribution, and payment.
  • Current networks also include disposal and recycling.

Supply Chain Activities

  • Design, planning, operations, control, and monitoring are key activities of a supply chain.
  • These activities are interconnected and form a comprehensive system.

Apple iPhone Supply Chain Example

  • Illustrates a complex international supply chain.
  • Shows the global sourcing of various components.

Supply Chain Management Goals

  • Effective deployment of global supply chains.
  • Development of a competitive infrastructure.
  • Value generation.
  • Global performance measurement.
  • Synchronization of supply and demand.

Supply Chain Operations Reference (SCOR) Model

  • A process reference model and diagnostic tool for supply chain management.
  • Describes business activities to meet customer demand.
  • Standardizes supply chains within and between companies.
  • Characterized by process elements (plan, procurement, production, delivery, and redelivery).

SCOR Model Levels

  • Level 1: Statements of the number of supply chains and descriptions of performance measurements.
  • Level 2: Defines the sequence of planning and implementation processes for material flows.
  • Level 3: Determines business processes and marketing forecasts.

Purchasing Process Overview

  • Defines the purchase steps from specification to contract agreement.
  • Discusses the role of procurement and associated documents.

Importance of Purchasing and Procurement

  • Purchasing and procurement management is crucial and growing.
  • Reductions in production depth lead to more external sourcing.
  • Reducing the number of suppliers can yield substantial cost savings.

Purchasing/Procurement Cost Impact on Sales

  • 1% reduction in material cost and overhead is equivalent to at least a 10% increase in sales.

Definitions for Calculations

  • Mc: Material cost ratio of sales (%).
  • E: Reduction of material costs (%).
  • R: Profit margin (%).
  • Pc: Profit contribution of the procurement.

Calculation Example

  • Illustrates the correlation between material cost reduction and sales increase.

Logistics Benchmarks of Leading US Businesses

  • Covers purchasing benchmarks in various sectors: steel, semiconductors, electrical equipment, and more.
  • Indicates the significant role of offshoring (LCCS).

Logistics as a Cross-Functional Unit

  • Serves various departments in a company (customer, development, sales, etc)
  • Aims for a conflict-free environment.

Objectives of Logistics

  • To prevent the fragmentation of business activities.
  • To prevent the lack of competitiveness and conflict.

Logistics Success Factors

  • Detailed cost forecasting.
  • Informal customer contacts.
  • High proportion of weekly production.
  • Measurement of key performance indicators (KPIs).
  • Transparent planning processes.

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Lecture 01 - Integrated Logistics, Procurement, Materials Management and Production PDF

Description

Test your knowledge on the key concepts of international supply chain management, including global sourcing, manufacturing locations, and logistics adaptation. This quiz covers essential aspects such as strategic procurement and cost considerations in supply chains.

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