Global Operations And Supply Chain Management - 858 Words

Global Operations and Supply Chain Management Competitive Alternatives Survey A company involved in manufacturing medical devices decides to begin sourcing components internationally. As for now, it operates in the United States and Germany only. So, senior management should assess the relative manufacturing costs worldwide to choose where to source. This decision will be made based on manufacturing costs. Cities with the Lowest and Highest Manufacturing Costs The latest Competitive Alternatives survey was published by KPMG in 2016. It is the comparison of more than 100 cities in 10 countries all over the globe. The key finding of the report is that Mexico has the highest relative cost advantage if compared to the United States, and Japan has the lowest (KPMG, 2016). However, the area of interest of this investigation is to determine three cities with the highest and the lowest manufacturing costs for the company’s specific industry – medical devices manufacturing. The 2016 report specifies that Monterrey and Mexico City in Mexico offer the lowest prices if taking into consideration facility cost (factory rent). The same is true about utility (electricity and natural gas), labor (salaries, statutory plans, etc.), and transportation (surface and air fright) costs. In general, Mexico is an attractive destination for sourcing because manufacturing costs are almost 22 percent lower than in the United States (Medical devices, 2016). The second cheapest country is Canada. InShow MoreRelatedThe Problem Of Supply Chain Management Research1448 Words   |  6 Pagesaddresses an issue within supply chain management research that has not been given much attention, and thereby attempts to bring focus to modern slavery within organizations with international supply chains. It calls for new theory development towards the detection and elimination of slavery within global supply chain, as well as the development of new tools and indicators that can be used to detect slavery within supply chains. After detecting slavery within a supply chain, complete withdrawal ofRead MoreManaging the Global Supply Chain: Warehousing Essay669 Words   |  3 PagesManaging the Global Supply Chain Warehousing The use of traditional warehousing techniques is still prevalent in warehouses today. Picking and putting away products, followed by clipboard documentation worked well for many businesses though out the years and they have a hard time with embracing the change that technology and its efficiency would bring to their warehouse operations. Many warehouse operations are incorporating this change, â€Å"There is a move away from traditional warehousing withRead MoreThe Supply Chain Of Supply Chains1235 Words   |  5 PagesSupply chains has been relevantly defined as a â€Å"system of organizations which are convoluted through upstream and downstream linkages, in the diverse methodologies and activities that create benefit in the form of services and products in the hands of a definitive consumer†, and is therefore the sum total of efforts in integrating a network of firms and coordination as regards information, material and financial flows. Interestingly, the two main suppl y chain objectives have moved, from decreasingRead MoreLogistics: Management and Supply Chain1566 Words   |  7 PagesMinor Logistics Operations Presentatie titel MIRBSLM114OP N.J. Osentoski-Monsma A. Nielsen-de Vries Lecturers Logistics Room D2.173 osenj@hr.nl / vriad@hr.nl Rotterdam, 00 januari 2007 6-1 Corporate strategy Business strategy Operations Strategy Mission Objectives (cost, quality, flexibility, delivery) Functional strategies in marketing, finance, engineering, human resources, and information systems Strategic Decisions (process, quality system, capacity, andRead MoreGlobal Supply Chain Management Essay991 Words   |  4 Pagesprocessing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impactsRead MoreEssay on Protecting The Supply Chain1004 Words   |  5 Pagescompany’s supply chain, the more vulnerable the company becomes. When the company’s suppliers spread further and further away from the company, the company becomes even more vulnerable to political and currency risk, cyber attacks, missed inventory goals, and failed communication with the suppl y chain. For a company to overcome those potential vulnerabilities, a company must build safeguards into their operations. Those safeguards include a strong corporate backing in supply chain management, solidRead MoreSupply Chain Management And Operations Management747 Words   |  3 PagesPart I, Objective 1: Supply Chain Management (SCM) and Operations Management (OM) Supply chain management is the business of overseeing the flow of materials to manufacturers, wholesalers, retailers and consumers. It is an external process that involves supply chain managers communicating with other vendors to ensure a product flows through the supply chain smoothly. Once a product reaches the consumer, it has already flowed through multiple organizations – these organizations collectively are referredRead MoreQuiz Questions On Supply Chain Management1170 Words   |  5 PagesQuiz 1 Supply chain management Supply chain management: It is defined as effective control of flow of material, information and finance in a network consisting of suppliers, manufacturers, distributors and customers. Schematic representation: Effective functioning of supply chain requires †¢ Coordination: proper coordination should exist in supply chain to meet the demands of the customers at right time, right place with right quality †¢ Collaboration: there should be proper collaboration betweenRead MoreLogistics Of Logistics And Transportation1304 Words   |  6 Pagessystems in many sectors has grown as a result of increasing product variations and differentiation. Another factor is that many companies are concentrating on their core skills and are reducing their vertical integration. The efficient management of the resulting global flows of goods has boosted both the business and economic significance of logistics. The creation of large economic regions gives rise to international, cross-border logistics systems (The Macroeconomic, 2008). The close relationshipRead MoreSupply Of Supply Chain Management830 Words   |  4 PagesSupply Chain Management Goal of a supply chain. According to Defining the Supply Chain, there are 5 specific goals of supply chain management. They are as follows: 1. Achieve Efficient Fulfillment – â€Å"the purpose of supply chain management is to make inventory readily available in customer facing positions to fulfill demand. The fresh produce business adage â€Å"you can’t sell from an empty wagon† highlights this fundamental purpose of supply chain management†. (Defining the Supply Chain) Organizations