Chapter 3 Global Dimensions of Supply Chains
Chapter 3 Global Dimensions of Supply Chains
Chapter 3 Global Dimensions of Supply Chains
Learning Objectives
Explain the rationale for global security measures and the balance
necessary to ensure that such security measures do not impede trade.
The
In
The advantage is true as long as you can sell the increased volume that
is produced. It is an important role of logistics to help extend the market
area of countries or companies through improved efficiency to lower the
landed cost in new market areas.
The
Ports
Ports are a critical part of global supply chains and also a major focus
for global security.
Americas ports are a vital part of its global commerce. Over $2 trillion in
trade value per year passes through U.S. ports, and over $18 billion is
collected in industry fees and taxes.
Even though the U.S./Canada Free Trade Agreement has been in effect
for some time, certain trade barriers still remain.
Air
Rail
Transit sheds provide temporary storage while the goods await the next
portion of the journey
Packaging
The shipper may find settling liability claims for damage to export goods
very difficult. Usually, the freight handling involves many firms, and
these firms are located in different countries.
Summary
Companies competing in global supply chains need to address some
important questions for their global networks to ensure their
efficiency and effectiveness.
There have been three phases of globalization: the first was driven
by countries, the second by large companies, and the third by
individuals and small organizations.
The scope and magnitude of trade flows between the United States
and other countries have grown considerably in the last several
decades. One interesting development has been the growth in
importance of trade with China and several other Asian countries.
Summary (cont.)
Supply chain security has taken on increased importance since September 11,
2001. Companies individually, jointly, and in cooperation with the various levels
of government need to be actively involved. The federal government, in
particular, has expanded the scope of its regulations and policies for global
security.
U.S. ports play a critical role in global supply chains since over 90 percent of
global trade passes through them. Ports are also an important focus for security.
Canada and Mexico are ranked number 1 and 3, respectively, on the list of most
important trading partners with the United States. That relationship is enhanced
by the North American Free Trade Agreement ratified by Congress in 1994.
While the treaty had lofty goals, it still is experiencing problems with full
implementation of its objectives. Nevertheless, it has fostered trade in North
America.