SCMN EXAM 3 QUESTIONS WITH
REVISED ANSWERS 2025 UPDATE
What is the purpose of Global Sourcing? - Answer--Entails identifying, evaluating,
negotiating and configuring supply across multiple geographies to reduce costs,
maximize performance and mitigate risks.
-Aims to leverage global efficiencies in the creation of a product or service.
-Manufacturing & assembly operations
-Call center operations
-IT programming
What costs must be compared when considering Global Sourcing? - Answer--Material
costs
-Transportation costs
-Inventory carrying costs
-Cross-border taxes, tariffs, and duty costs
What is Offshore Manufacturing? - Answer--Production of goods by one firm, under the
label or brand of another firm.
What are the advantages of Offshore Manufacturing? - Answer--labor costs are
cheaper, quickly rising
-strengthens competitive advantage
-able to leverage the comparative advantage of other nations
-gain market share
-help grow total market by innovation and introducing new products
What are the disadvantages of Offshore Manufacturing? - Answer--communication
involves difficult, heavy paperwork
-visibility is more challenging to maintain
-freight is more expensive, more risky
-stockouts have higher risk of shortages
-lead time is uncertain and longer cycle time
Why is the trend of Nearshoring & Onshoring taking place? - Answer--With increased
global competition & pressure to reduce costs, became more competitive & innovative,
many companies are turning to these based outsourcing vendors.
, What is Nearshoring? - Answer--The practice of moving one's employees or business
activities from a distant country back to a country that is nearby.
What are key supply chain information requirements? - Answer--Accuracy
-Relevance
-Current (timely)
-Reliable
-Transferable
-Usable
What benefits and capabilities are created by supply chain information technology? -
Answer--Optimization
-Cross-chain visibility
-Speed to market
-Agility
-Collaboration
-Adaptability
-Differentation
-Risk management
What are the types of supply chain software available to help managers? - Answer--
Supply Chain Planning
-Supply Chain Execution
-Event Management & Visibility
-Business Intelligence
-Facilitation Tools
Supply Chain Planning - Answer--provide accurate, detailed info about issues that affect
planning and development of supply chain activities.
Goal: transition from manual planning to an integrated system that leverages real time
data and collaboration.
Supply Chain Execution - Answer--facilitates improved performance of tasks across the
supply chain.
Applications:
-Warehouse management systems
-Transportation management systems
-Manufacturing execution systems
-Global trade management tools
-Distributed order management tools
Event Management & Visibility - Answer--helps manage problems and provide accurate,
timely info to ensure the right product gets to the right place at the right time.
Goals:
-Keep managers informed
-Provide visibility of critical flows
REVISED ANSWERS 2025 UPDATE
What is the purpose of Global Sourcing? - Answer--Entails identifying, evaluating,
negotiating and configuring supply across multiple geographies to reduce costs,
maximize performance and mitigate risks.
-Aims to leverage global efficiencies in the creation of a product or service.
-Manufacturing & assembly operations
-Call center operations
-IT programming
What costs must be compared when considering Global Sourcing? - Answer--Material
costs
-Transportation costs
-Inventory carrying costs
-Cross-border taxes, tariffs, and duty costs
What is Offshore Manufacturing? - Answer--Production of goods by one firm, under the
label or brand of another firm.
What are the advantages of Offshore Manufacturing? - Answer--labor costs are
cheaper, quickly rising
-strengthens competitive advantage
-able to leverage the comparative advantage of other nations
-gain market share
-help grow total market by innovation and introducing new products
What are the disadvantages of Offshore Manufacturing? - Answer--communication
involves difficult, heavy paperwork
-visibility is more challenging to maintain
-freight is more expensive, more risky
-stockouts have higher risk of shortages
-lead time is uncertain and longer cycle time
Why is the trend of Nearshoring & Onshoring taking place? - Answer--With increased
global competition & pressure to reduce costs, became more competitive & innovative,
many companies are turning to these based outsourcing vendors.
, What is Nearshoring? - Answer--The practice of moving one's employees or business
activities from a distant country back to a country that is nearby.
What are key supply chain information requirements? - Answer--Accuracy
-Relevance
-Current (timely)
-Reliable
-Transferable
-Usable
What benefits and capabilities are created by supply chain information technology? -
Answer--Optimization
-Cross-chain visibility
-Speed to market
-Agility
-Collaboration
-Adaptability
-Differentation
-Risk management
What are the types of supply chain software available to help managers? - Answer--
Supply Chain Planning
-Supply Chain Execution
-Event Management & Visibility
-Business Intelligence
-Facilitation Tools
Supply Chain Planning - Answer--provide accurate, detailed info about issues that affect
planning and development of supply chain activities.
Goal: transition from manual planning to an integrated system that leverages real time
data and collaboration.
Supply Chain Execution - Answer--facilitates improved performance of tasks across the
supply chain.
Applications:
-Warehouse management systems
-Transportation management systems
-Manufacturing execution systems
-Global trade management tools
-Distributed order management tools
Event Management & Visibility - Answer--helps manage problems and provide accurate,
timely info to ensure the right product gets to the right place at the right time.
Goals:
-Keep managers informed
-Provide visibility of critical flows
