5.6.3 The impact of globalization on supply chains

• What is globalization defined as in the context of economies?

  Increasing integration of economies
• Globalization affects businesses by expanding their market reach
• Globalization improves efficiency through resource sourcing.
• What is one advantage of globalization for supply chains?

  Access to wider suppliers
• Global supply chains can reduce costs through outsourcing
• Globalization reduces the complexity of logistics in supply chains.

  False
• What does a global supply chain involve coordinating?

  Suppliers, manufacturers, logistics providers
• Global sourcing refers to accessing suppliers from various countries
• Managing transportation across borders is a characteristic of complex logistics in global supply chains.
• What must global supply chains adapt to in terms of business practices and laws?

  Cultural and regulatory differences
• One key aspect of global supply chain risk management is mitigating currency fluctuations
• Apple's global supply chain includes manufacturing in China.
• What is one key difference between traditional and global supply chains?

  Global sourcing
• Global supply chains rely on complex, multi-modal transportation
• Global supply chains are exposed to local risks only.

  False
• A global supply chain involves the coordination of suppliers, manufacturers, logistics providers, and distributors
• Global sourcing involves accessing suppliers from various countries.
• Complex logistics in a global supply chain involve managing transportation and distribution across borders
• Globalization is the increasing integration of economies through trade, foreign investment, migration, and information technology
• Order the effects of globalization on businesses:

  1️⃣ Expanding market reach

  2️⃣ Improving efficiency through resource sourcing

  3️⃣ Increasing competition
• Globalization allows supply chains to access a wider range of suppliers.
• Globalization reduces costs in supply chains through outsourcing
• Global supply chains use complex, multi-modal transportation for logistics.
• Globalization reduces costs in supply chains by sourcing materials from countries with lower labor costs.
• Adapting to cultural and regulatory differences is a challenge in global supply chains.
• Managing transportation across borders can be costly and time-consuming in global supply chains.
• To manage a global supply chain effectively, firms must build strong partnerships
• Order the strategies for optimizing a global supply chain:

  1️⃣ Leverage technology

  2️⃣ Build strong partnerships

  3️⃣ Practice risk management

  4️⃣ Employ lean principles

  5️⃣ Embrace sustainability
• Technology in supply chains improves accuracy and speed.
• Dependence on reliable infrastructure is a challenge of using technology in global supply chains.
• IT systems provide real-time visibility and tracking of goods across the supply chain
• Artificial Intelligence (AI) can forecast demand and optimize inventory management in supply chains
• One of the benefits of technology in supply chains is reduced costs
• Enhanced customer service is a key benefit of integrating technology into supply chains
• Order the steps involved in Amazon's use of technology for supply chain management:

  1️⃣ Forecast demand using AI

  2️⃣ Manage logistics with big data analytics

  3️⃣ Ensure timely delivery

  4️⃣ Achieve customer satisfaction
• What is one key strategy used by Apple Inc. in their global supply chain?

  Centralized production in China
• Zara's quick response system relies on real-time data
• What is globalization in the context of businesses and economies?

  Integration of economies worldwide
• Globalization allows businesses to access new markets and customers
• Globalization enables supply chains to access a wider range of suppliers