Global Supply Management

Global Supply Management

1. The Importance of Global Supply

   • Reasons for Global Purchasing
     • Unavailability of Items Domestically
     • Price and Total Cost
     • Government Pressures and Trade Regulations
     • Quality
     • Faster Delivery and Continuity of Supply
     • Better Technical Service
     • Technology
     • Marketing Tool
     • Tie-in with Offshore Subsidiaries
     • Competitive Clout
   • Potential Problem Areas
     • Source Location and Evaluation
     • Lead Time and Delivery
     • Expediting
     • Political, Labor, and Security Problems
     • Hidden Costs
     • Currency Fluctuations
     • Payment Methods
     • Quality
     • Warranties and Claims
     • Tariffs and Duties
     • Administration Costs
     • Legal Issues
     • Logistics and Transportation
     • Language
     • Communications
     • Cultural and Social Customs
     • Ethics and Social Responsibility

2. Selecting and Managing Offshore Suppliers

   • Global Sourcing Organizations
     • Regional Purchasing Offices
     • Global Commodity Management Organization
     • International Purchasing Office (IPO)
   • Intermediaries
     • Import brokers and agents.
     • Import merchant
     • Seller’s subsidiary
     • Sales representatives
     • Trading company
   • Information Sources for Locating and Evaluating Offshore Suppliers
     • Internet
     • Government sources
     • Chambers of commerce
     • Supply department
     • Supply chain partners
     • Supplier locator directory
     • Importers and foreign trade brokers

3. Incoterms

   • Group E—Departure
   • Group F—Main Carriage Unpaid
   • Group C—Main Carriage Paid by Seller
   • Group D—Arrival

4. Tools for Global Supply

   • Countertrade
     • Barter/Swaps
     • Offset Arrangements
     • Counterpurchase
     • Buyback /Compensation
     • Switch Trade
   • Foreign Trade Zones
     • Manufacturing
     • Transshipment
     • Storage
     • Manipulation.
     • Refunding of duties, taxes, and drawbacks
     • Exhibition and display
     • Maquiladoras
   • Bonded Warehouses
   • TIB and Duty Drawbacks

5. Regional Trading Agreements

   • NAFTA
   • EU
   • ASEAN
   • Mercosur
   • Andean Community
   • WTO

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