Please enable JavaScript.

Coggle requires JavaScript to display documents.

TMA02 - Coggle Diagram

- - - - 3.1: Most of the materials are commodities that are purchased on the basis of unit price and these items will be bought wherever they can be sourced from cheaply.
    - - Loss of control
        
        Planning and tracking complexity
        
        Failure to deploy resources to manage disruption with suppliers
    - - Disadvantages
  - - - Flexibility in choosing suppliers means ability to enter and exit markets quickly
        
        Provides an opportunity to nearshore. In Pedago's case, Mexico may provide manufacturing opportunities (Blanchard, 2010, p. 132)
    - - Vulnerable to increased costs due to tariffs and exchange rates
      - Inefficiency and cost: Delays to one part can lead to excessive storage costs for items that are waiting to be assembled
        
        Input-process-output
        
        Delays in some inputs leading to misaligned processes
        
        Implications include failure to deliver orders, and increased storage costs
    - - Resilience to disruption
      - Pro: Flexibility
  - - - Pass on low costs to customers in the form of low prices
    - - Failure to meet customer needs
    - - Sustainability
        
        Carbon footprint of extended supply chain
      - Outsourcing & offshoring jobs to Asia
        
        Domestic perception