Page 263 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes  Time is another big issue that should be addressed when dealing with global supply chain
management.
 Most companies recognize the need to respond to shorter product lifecycles, increased
customer expectations, fluctuating inventory levels and changing costs.

 Tax structures and tax rates have at all times been design considerations, particularly
when selecting between alternative sites within a local geography.
 Global economies are increasingly interlinked by material suppliers, logistical systems,
manufacturing capacity, and markets.
 Securing the global supply chain, while ensuring its smooth functioning, is essential to
our national security and economic prosperity.

 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.
 The use of global sourcing has been the driving force behind the development and expansion
of the global economy.

11.7 Keywords

Consignment: An arrangement under which items are delivered by a consignor to a consignee to
be resold or used and paid for by the consignee.
Customers: A person, company, or other entity which buys goods and services produced by
another person, company, or other entity.
Demand Location: It refers to the geographic location and shipment profile (relative volume,
size and characteristics) of the market.
Labour Cost: It refers to the relative cost of production and distribution actions such as
manufacturing and handling.
Material Cost: It refers to the total cost of the raw material and workings, including both the
direct and indirect cost.
Positioning: Positioning is defined as the act of designing the company’s offering and image to
occupy a distinctive place in the target market’s mind.
Sourcing: It 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.
Strategic Fit: It determines the extent to which the activities of organizations working
in partnership complement each other in such a way as to contribute to competitive
advantage.
Strategy: A plan of action or policy designed to achieve a major or overall aim.

Supply Chain: A supply chain is a system of organizations, people, technology,
activities, information and resources involved in moving a product or service
from supplier to customer.

Tax Rates: The percent of income paid as tax, or the percent of the value of a good, service or
asset paid as tax.
Transportation Cost: It includes the cargo cost required for obtaining raw material, moving
material between plants and distribution facilities, and ultimate distribution to customers and
consumers.

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