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Unit 11: Supply Chain Logistics Design
8. A …………………… agreement may either stimulate or reduce interregional trade. Notes
9. …………………… standardizes monetary and fiscal policy among member countries.
11.4 SC Security
Securing the global supply chain, while ensuring its smooth functioning, is essential to our
national security and economic prosperity. This vital system provides the goods that feed our
domestic critical infrastructures and support our way of life. Other nations worldwide also rely
upon the goods transported by the global supply chain system – in that sense it is a truly global
asset that all stakeholders must collaboratively work to strengthen.
As a number of recent events have shown us, the global supply chain is dynamic, growing in
size and complexity, and is vulnerable to a host of threats and hazards such as natural disasters,
accidents, or even malicious attacks. A common approach, involving the range of stakeholders
with supply chain roles and responsibilities, is necessary.
The Strategy, focused on the worldwide network of transportation, postal, and shipping pathways,
assets, and infrastructures (including communications and information infrastructures) is an
important step forward. It provides strategic guidance to departments and agencies within the
United States Government and identifies our priorities to stakeholders with whom we hope to
collaborate going forward.
11.4.1 The Strategy
The Strategy establishes two goals. The first is to promote the efficient and secure movement of
goods and the second is to foster a global supply chain system that is prepared for and can
withstand evolving threats and hazards, and rapidly recovery from disruptions. As we work to
achieve our goals, we will be guided by two overarching principles established in the Strategy.
First, we will work to galvanize and integrate efforts across the United States Government and
with other key stakeholders. And second, we will continue and enhance our risk management
efforts. The Strategy also identifies a number of priority areas upon which we will focus our
immediate implementation efforts. We invite creative and smart ideas on how to improve
policies and activities relevant to these priorities or other areas of interest.
Self Assessment
State whether the following statements are true or false:
10. Securing the global supply chain is not essential to our national security and economic
prosperity.
11. The Strategy establishes two goals.
12. The Strategy does not focused on the worldwide network of transportation, postal, and
shipping pathways.
11.5 International Sourcing
Sourcing, is the way in which companies select their suppliers, determine the number they will
work with, and define the type of contractual agreements that will exist. This often includes
determining parameters for supplier pre-qualification, supplier analysis and evaluation. Sourcing
is the key to the development of a successful supply chain. Figure 11.1 summarizes the object of
sourcing.
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