SCM 300 – Module 07
Module 07: International Supply Chain Issues
In addition to the cases & the material from lecture, please also know these 4 additional
– When a company moves manufacturing out of its “home” country to another
Example of offshoring
Ford Motors has a significant offshoring strategy.
While the American
company Ford Motors has manufacturing plants in the United States, it also has plants around the
world in many countries including China, Germany, Brazil, Russia, and South Africa.
– When a company contracts an outside firm to perform services, operations, or
business processes that were previously performed in-house.
3. Contract manufacturer
– A company that produces goods on behalf of another organization
Examples of outsourcing and contract manufacturing:
Apple designs numerous digital devices but
they outsource manufacturing to companies like Foxconn and Pegatron.
Foxconn and Pegatron
would therefore be considered Apple’s contract manufacturers.
4. Business process outsourcing
–The outsourcing of office activities like accounting, human
resources, customer service activities (like call centers and customer chat).
types of outsourced activities are referred to as back office activities.
Example of business process outsourcing:
IBM offers business process outsourcing to companies
in the US and around the world.
IBM offers companies help in the areas of employee recruitment,
supply chain services, customer care and management of financial data.
If you owned a small
company you might consider having IBM help manage these types activities rather than developing
CASE: Unsafe for Children: Mattel’s Toy Recalls and SCM