LOGISTICS (REVIEWER) CH11: GLOBAL SUPPLY CHAIN
11.1 Global Supply Chain Integration
Objective Rationale
Increase revenue Open more markets
Expand beyond competitors
Economies of scale Take advantage of available production capacity
Reduce direct cost Take advantage of lower labor rates/real estate expense
Advance technology Specialized expertise in linguistics
Reduce firm’s global tax liability Local/regional tax benefits of property/income/investment
Reduce market access uncertainty Sourcing from location requiring low transportation cost
Outsourcing
Enhance sustainability Source from locations with ongoing level of materials needed
a. Logistics in global economy – increased cost and complexity
b. Globalization strategies
11.1 Global Supply Chain Integration
Objective Rationale
Increase revenue Open more markets
Expand beyond competitors
Economies of scale Take advantage of available production capacity
Reduce direct cost Take advantage of lower labor rates/real estate expense
Advance technology Specialized expertise in linguistics
Reduce firm’s global tax liability Local/regional tax benefits of property/income/investment
Reduce market access uncertainty Sourcing from location requiring low transportation cost
Outsourcing
Enhance sustainability Source from locations with ongoing level of materials needed
a. Logistics in global economy – increased cost and complexity
b. Globalization strategies
