Please enable JavaScript.
Coggle requires JavaScript to display documents.
Global Supply Management (7 potential problem areas: (Source Location and…
Global Supply Management
-
-
-
The equipment and processes used by the international supplier may be more efficient than those used by domestic suppliers.
The international supplier may be concentrating on certain products, and pricing ex- port products at particularly attractive levels to gain volume.
This is due to several factors, such as newer, better capital equipment; better quality control systems; and the offshore supplier’s suc- cess in motivating its workforce to accept responsibility for doing it right the first time
Because of limited domestic capacity, in some instances the offshore supplier can deliver faster than the domestic supplier. The offshore supplier may even maintain an inventory of products in North America, available for immediate shipment.
Some countries have made investments in infrastructure (roads, ports, and power) that support strong supply lines.
-
-
-
-
Competitive Clot
Competition tends to pressure the domestic supplier to become more efficient, to the long- term benefit of both that supplier and the buyer. Purchasers use imports or the threat of imports as a lever to pressure concessions from domestic suppliers.
-
-
Puchasing and Supply Chain Management, 14th edition. Authors: Johnson, Leenders & Flynn, Editorial MGH, ISBN 9780073377896
