Below is information taken from the course unit, could you input some informtion into the answer? Also, could you provide references in apa 7th edition? Global Sources Global sourcing is essential to the production of goods and services. Input is acquired for production from various sources globally based on the organizational need. Global sourcing refers to buying the raw materials or components that go into a company’s products from around the world, not just from the headquarters’ country (Carpenter & Dunung, 2011). On the other hand, using multiple suppliers gives a company more flexibility. For instance, if there’s a natural disaster or other disruption at one of their suppliers, the company can turn to its other suppliers to meet its needs. For example, when Hurricane Mitch hit Honduras with 180-mile-per-hour winds, 70 to 80 percent of Honduras’s infrastructure was damaged and 80 percent of its banana crop was lost. Both Dole Food Company and Chiquita bought bananas from Honduras, but Dole relied more heavily on bananas from Honduras than from other countries. As a result, Dole lost 25 percent of its global banana supply, but Chiquita lost only 15 percent (Carpenter & Dunung, 2011). Sole-Sourcing Advantages • Price discounts based on higher volume • Rewards for loyalty during tough times • Exclusivity brings differentiation • Greater influence with a supplier Sole-Sourcing Disadvantages • Higher risk of disruption • Supplier has more negotiating power on price Multi-sourcing Advantages • More flexibility in times of disruption • Negotiating lower rates by pitting one supplier against another Multi-sourcing Disadvantages • Quality across suppliers may be less uniform • Less influence with each supplier • Higher coordination and management costs Whichever sourcing strategy a company chooses, it can reduce risk by visiting its suppliers regularly to ensure the quality of products and processes, the financial health of each supplier, and the supplier’s adherence to laws, safety regulations, and ethics. Distribution Management Selling internationally means considering how your company will distribute its goods in the market. Developed countries have good infrastructure—passable roads that can accommodate trucks, retailers who display and sell products, and reliable communications infrastructure and media choices. Rural logistics are especially problematic. Narrow dirt roads, weight-limited bridges and mud during the rainy season, hamper the movement of goods. Outsourcing The advantages of outsourcing include the following: • Efficient processes (the outsourcer typically specializes in a particular process or set of processes, giving them high levels of expertise with that process) • Access to specialized equipment that may be too expensive for a company to invest in unless that process is their chief business India has long been a favorite location for outsourcing services, such as call centers and software testing, because of its English-speaking, highly educated workforce. The labour-rate ratio has been five to one, meaning that a company based in the United Kingdom, for example, could hire five Indian college graduates for the price of hiring one UK college graduate. Given the high demand for their labour, however, Indian employees’ wages have begun to rise. Offshoring companies are now faced with a new challenge. The firms hire and train Indian employees, only to see them leave in a year for a higher salary elsewhere. This wage inflation and high turnover in India, has led some companies, like ABN AMRO Bank, to consider whether they should move offshoring operations to China, where wages are still low. The downside is that, graduates in China aren’t as knowledgeable about the financial industry, and language problems may be greater. Supply-Chain Management Supply-chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and logistics (Carpenter & Dunung, 2011). In essence, supply-chain management integrates supply-and-demand management within and across companies. Activities in the supply chain include: • demand management (e.g., forecasting, pricing, and customer segmentation), • procurement (e.g., purchasing, supplier selection, and supplier-base rationalization), • inventory management (e.g., raw materials and finished goods), • warehousing and material handling, • production planning and control (e.g., aggregate planning, workforce scheduling, and factory operations), • packaging (i.e., industrial and consumer), • transportation management, • order management, • distribution network design (e.g., facility location and distribution strategy), and product-return management.
Below is information taken from the course unit, could you input some informtion into the answer? Also, could you provide references in apa 7th edition?
Global Sources
Global sourcing is essential to the production of goods and services. Input is acquired
for production from various sources globally based on the organizational need.
Global sourcing refers to buying the raw materials or components that go into a
company’s products from around the world, not just from the headquarters’ country
(Carpenter & Dunung, 2011).
On the other hand, using multiple suppliers gives a company more flexibility. For
instance, if there’s a natural disaster or other disruption at one of their suppliers,
the company can turn to its other suppliers to meet its needs. For example, when
Hurricane Mitch hit Honduras with 180-mile-per-hour winds, 70 to 80 percent of
Honduras’s infrastructure was damaged and 80 percent of its banana crop was lost.
Both Dole Food Company and Chiquita bought bananas from Honduras, but Dole
relied more heavily on bananas from Honduras than from other countries. As a result,
Dole lost 25 percent of its global banana supply, but Chiquita lost only 15 percent
(Carpenter & Dunung, 2011).
Sole-Sourcing Advantages
• Price discounts based on higher volume
• Rewards for loyalty during tough times
• Exclusivity brings differentiation
• Greater influence with a supplier
Sole-Sourcing Disadvantages
• Higher risk of disruption
• Supplier has more negotiating power on price
Multi-sourcing Advantages
• More flexibility in times of disruption
• Negotiating lower rates by pitting one supplier against another
Multi-sourcing Disadvantages
• Quality across suppliers may be less uniform
• Less influence with each supplier
• Higher coordination and management costs
Whichever sourcing strategy a company chooses, it can reduce risk by visiting its
suppliers regularly to ensure the quality of products and processes, the financial health
of each supplier, and the supplier’s adherence to laws, safety regulations, and ethics.
Distribution Management
Selling internationally means considering how your company will distribute its
goods in the market. Developed countries have good infrastructure—passable roads that can accommodate trucks, retailers who display and sell products, and reliable
communications infrastructure and media choices.
Rural logistics are especially problematic. Narrow dirt roads, weight-limited bridges
and mud during the rainy season, hamper the movement of goods.
Outsourcing
The advantages of outsourcing include the following:
• Efficient processes (the outsourcer typically specializes in a particular process or
set of processes, giving them high levels of expertise with that process)
• Access to specialized equipment that may be too expensive for a company to invest
in unless that process is their chief business
India has long been a favorite location for outsourcing services, such as call centers
and software testing, because of its English-speaking, highly educated workforce.
The labour-rate ratio has been five to one, meaning that a company based in the
United Kingdom, for example, could hire five Indian college graduates for the price
of hiring one UK college graduate. Given the high demand for their labour, however,
Indian employees’ wages have begun to rise. Offshoring companies are now faced
with a new challenge. The firms hire and train Indian employees, only to see them
leave in a year for a higher salary elsewhere. This wage inflation and high turnover
in India, has led some companies, like ABN AMRO Bank, to consider whether they
should move offshoring operations to China, where wages are still low. The downside
is that, graduates in China aren’t as knowledgeable about the financial industry, and
language problems may be greater.
Supply-Chain Management
Supply-chain management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and logistics (Carpenter
& Dunung, 2011).
In essence, supply-chain management integrates supply-and-demand management
within and across companies. Activities in the supply chain include:
• demand management (e.g., forecasting, pricing, and customer segmentation),
• procurement (e.g., purchasing, supplier selection, and supplier-base rationalization),
• inventory management (e.g., raw materials and finished goods),
• warehousing and material handling,
• production planning and control (e.g., aggregate planning, workforce scheduling,
and factory operations),
• packaging (i.e., industrial and consumer),
• transportation management,
• order management,
• distribution network design (e.g., facility location and distribution strategy), and
product-return management.
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