Global Sourcing Logistics
How to Manage Risk and Gain Competitive Advantage
Published on 16. January 2007
Book
Hardback
464 pages
978-0-8144-0892-6 (ISBN)
Description
A must-have resource for all sourcing, supply chain, risk management. and import/export professionals, Global Sourcing Logistics features tools for creating acomprehensive program to ensure competitive advantage while avoiding the pitfalls that can undermine even powerful businesses and seasoned supply chain veterans.
More details
Language
English
Place of publication
New York
United States
Target group
Professional and scholarly
Illustrations
Illustrations
Dimensions
Height: 93 mm
Width: 65 mm
Thickness: 15 mm
Weight
2 gr
ISBN-13
978-0-8144-0892-6 (9780814408926)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Person
Thomas A. Cook is an advisor or board member for many companies in the global trade arena. His 30-year career includes considerable experience in international manufacturing, insurance, trade finance, and global military supply chain logistics. He has written more than 200 articles on international trade.
Content
"Foreword xv
Preface xvii
Acknowledgments xix
Chapter 1 1
Developing Foreign Sourcing
This chapter sets the stage for the volume of comprehensive
and critical material covered in the balance of the
book. It explains in an overview format just why companies
look to sourcing overseas, how they will interface with foreign
companies, and just what options exist in finding and
managing these vendor relationships.
There is also an intensive guide to finding and qualifying
overseas partners.
Overview
Sourcing vs. Outsourcing
Global Purchasing Management 101
Skill Sets for Purchasing Managers
Why Develop Sourcing Options in Foreign Markets?
Locating Manufacturing Sources
Developing Relationships with Foreign Partners
Joint Venture, Own, or Contract Out?
Chapter 2 17
The Global Sourcing Model
This chapter begins the process of dissecting the risks of
global sourcing, framing the issues, and providing necessary
benchmarking ideas for evaluating the importance to your
organizationis supply chain.
Various case studies will be reviewed that provide insight
and informed concepts into your own decision-making
processes.
Identifying the Risks of Global Sourcing.
Competition for Resources
Lack of Expertise
Force Majeure
Local and Regional Politics
Currency Issues
Local and Regional Economics
Relationships between the United States and Other
Countries
Language and Culture
Energy, Communication, and Transportation
Infrastructure
Government Posture
Legal and Proprietary Rights
U.S. Customs
The Physical Risks of Transporting Goods from
Overseas to the United States
Putting the Risks into Perspective.
Cook's Law of Global Risk
Case Studies:
Where Foreign Sourcing Makes Sense
Where Foreign Sourcing Makes Little Sense
Options to Global Sourcing
Foreign Trade Zones
Chapter 3 37
Landed Costs
Landed Cost becomes the key factor in making sure that
foreign sourcing provides competitive advantage. It is the
total aggregate of all the costs to develop and bring a product
to produce utilization or revenue.
Understanding how landed cost works is a key ingredient
for making sure that off shore production is viable and
to assure competitive inbound supply chains
Developing Landed Cost Models
Import Landed Cost Matrix
Export Landed Cost Matrix
Integrating Domestic Supply Chain Requirements
Landed Cost AnalysisCase Study
Landed Costs
Reducing Landed Costs
Sourcing from China
Best Practices from PRC China
Transportation and Logistics
Managing Service Providers: Freight Forwarders,
Customhouse Brokers, and Carriers
Third Party Logistics
Chapter 4 59
Post 9/11 and The Affect on Global Purchasing
The world changed on 9/11. This chapter peels through
the layers of government scrutiny in dealing with the various
government agencies engaged in enforcement and regulatory
controls.
The reader will have a very detailed composite of all the
necessary documentation, procedures, and legal ramifications
involved in importing goods and merchandise into
the United States.
In today's competitive market, in order to run successfully,
all supply chains must pay attention to all the security,
compliance, and regulatory affairs that have changed
importing and exporting since the events of 9/11.
Post 9/11 Overview
Compliance, Security, and Terrorism
Department of Homeland Security
U.S. Customs and Border Protection
Container Security Initiative
24 Hour Manifest
Customs-Trade Partnership Against Terrorism
Free and Secure Trade
Department of Transportation and the Transportation
Security Adminstration: Hazardous Materials
Operation Safe Commerce
Import Management Overview
Importer of Record
Reasonable Care
Supervision and Control
Ultimate Consignee
Power of Attorney
Due Diligence
Record Keeping
Documentation (Invoice) Requirements
Assists
Drawback
Harmonized Tarriff Classification
Imported Product and Origin Markings
Valuation
Duties and Taxes
Customs Ruling Online Research System
Intellectual Property Rights E-Recordation Online
System
Automated Customs Environment
Compliance Management: Post 9/11 Environment
How Supply Lines were Affected
The United States Government Reacts
x CONTENTS
90858_chFM (i-xxii).ps 9/7/06 1:29 PM Page x
Logistics Costs Escalate
Documentation Detail
Inbound Supply Chains Required Changes
Supplier Qualifications
Compliance Management
Foreign Sourcing Executives and Export
Government Agencies
Automated Export System and Census Bureau
United States Principal Partner of Interest
Export Licensing
Denied Parties
Deemed Exports
Bis Transshipment Country Export Control Initiative
Anti-Boycott Compliance
Department of Treasury
Department of State
Chapter 5 135
Risk Management and Insurance
When we choose to operate in foreign markets, we have
various insurance exposures that we now entertain. This
chapter takes a hard look at identifying the various exposures,
categorizing them, and offering risk management
strategies to eliminate or mitigate.
We would not build a facility today without a sprinkler
and alarm system as a method of managing the risks of fire
and burglary, so why would we build a supply chain in sourcing
from overseas suppliers and not build-in risk management
and loss control features?
This chapter outlines how we reduce the risks and maximize
our opportunity for a loss free global supply chain.
Insurance Exposures
Risk Management
Personnel
Kidnap and Ransom
Property and Liability
Contract and Business Relationship Management
Marine Cargo
Broker and Insurance Company
Scope of Coverage
Limits
Geographic Limitations
Modes of Transit
Currency
Contingency or Unpaid Vendor Coverage or
Difference in Conditions
Duty and Taxes
Terrorism Risk Insurance Act
War Strikes, Riots, and Civil Commotions
Political Risk, Receivables, and Export Credit
Ten Steps in Managing Political Risk Insurance
Selecting Broker or Underwriter
Service Requirements
Combining Risk
Communication
Contract Review
Political Risk Intelligence
Rates, Terms, Conditions
Export Credit
Loss Control
Claims Procedures
Loss Control Management
Chapter 6 169
Developing an Inbound Supply Chain Risk Management
Strategy
With all of the knowledge gained from the prior chapters, it is
now apropos to put it into motion and create a "plan of action."
The reader will have the specific tools provided for securing
a program to reduce risk and create the most competitive
environment to make the inbound (import) supply
chain work successfully.
Developing an Inbound Supply Chain Risk Management
Strategy
Spread of Risk
Applying Loss Control to Foreign Partners
Engage Foreign Partner
Exercise Patience
Invest in the Relationship
Managing the International Communication Terms
Supply Chain Standard Operating Procedures
Technology Options
Competitive Advantage
Compliance and Security Management
Federal Corrupt Practices Act
Radio Frequency Identification: Supply Chain Compliance
and Security Tool
Sarbanes-Oxley
Best Practices: Ten Step Management Approach
Chapter 7 211
Closing Remarks
Glossary 215
Guide to Abbreviations and Acronyms 227
Appendix 233
Import Regulations Reference Guide
Guidance on Reexports
FDA Enforcement
Tips for New Importers and Exporters
Managing the North American Free Trade Agreement
USA/Canada/Mexico
Inbound Customs Manifest Requirements
Outline of Terrorism Act of 2002
Key to International Web Sites
Index"
Preface xvii
Acknowledgments xix
Chapter 1 1
Developing Foreign Sourcing
This chapter sets the stage for the volume of comprehensive
and critical material covered in the balance of the
book. It explains in an overview format just why companies
look to sourcing overseas, how they will interface with foreign
companies, and just what options exist in finding and
managing these vendor relationships.
There is also an intensive guide to finding and qualifying
overseas partners.
Overview
Sourcing vs. Outsourcing
Global Purchasing Management 101
Skill Sets for Purchasing Managers
Why Develop Sourcing Options in Foreign Markets?
Locating Manufacturing Sources
Developing Relationships with Foreign Partners
Joint Venture, Own, or Contract Out?
Chapter 2 17
The Global Sourcing Model
This chapter begins the process of dissecting the risks of
global sourcing, framing the issues, and providing necessary
benchmarking ideas for evaluating the importance to your
organizationis supply chain.
Various case studies will be reviewed that provide insight
and informed concepts into your own decision-making
processes.
Identifying the Risks of Global Sourcing.
Competition for Resources
Lack of Expertise
Force Majeure
Local and Regional Politics
Currency Issues
Local and Regional Economics
Relationships between the United States and Other
Countries
Language and Culture
Energy, Communication, and Transportation
Infrastructure
Government Posture
Legal and Proprietary Rights
U.S. Customs
The Physical Risks of Transporting Goods from
Overseas to the United States
Putting the Risks into Perspective.
Cook's Law of Global Risk
Case Studies:
Where Foreign Sourcing Makes Sense
Where Foreign Sourcing Makes Little Sense
Options to Global Sourcing
Foreign Trade Zones
Chapter 3 37
Landed Costs
Landed Cost becomes the key factor in making sure that
foreign sourcing provides competitive advantage. It is the
total aggregate of all the costs to develop and bring a product
to produce utilization or revenue.
Understanding how landed cost works is a key ingredient
for making sure that off shore production is viable and
to assure competitive inbound supply chains
Developing Landed Cost Models
Import Landed Cost Matrix
Export Landed Cost Matrix
Integrating Domestic Supply Chain Requirements
Landed Cost AnalysisCase Study
Landed Costs
Reducing Landed Costs
Sourcing from China
Best Practices from PRC China
Transportation and Logistics
Managing Service Providers: Freight Forwarders,
Customhouse Brokers, and Carriers
Third Party Logistics
Chapter 4 59
Post 9/11 and The Affect on Global Purchasing
The world changed on 9/11. This chapter peels through
the layers of government scrutiny in dealing with the various
government agencies engaged in enforcement and regulatory
controls.
The reader will have a very detailed composite of all the
necessary documentation, procedures, and legal ramifications
involved in importing goods and merchandise into
the United States.
In today's competitive market, in order to run successfully,
all supply chains must pay attention to all the security,
compliance, and regulatory affairs that have changed
importing and exporting since the events of 9/11.
Post 9/11 Overview
Compliance, Security, and Terrorism
Department of Homeland Security
U.S. Customs and Border Protection
Container Security Initiative
24 Hour Manifest
Customs-Trade Partnership Against Terrorism
Free and Secure Trade
Department of Transportation and the Transportation
Security Adminstration: Hazardous Materials
Operation Safe Commerce
Import Management Overview
Importer of Record
Reasonable Care
Supervision and Control
Ultimate Consignee
Power of Attorney
Due Diligence
Record Keeping
Documentation (Invoice) Requirements
Assists
Drawback
Harmonized Tarriff Classification
Imported Product and Origin Markings
Valuation
Duties and Taxes
Customs Ruling Online Research System
Intellectual Property Rights E-Recordation Online
System
Automated Customs Environment
Compliance Management: Post 9/11 Environment
How Supply Lines were Affected
The United States Government Reacts
x CONTENTS
90858_chFM (i-xxii).ps 9/7/06 1:29 PM Page x
Logistics Costs Escalate
Documentation Detail
Inbound Supply Chains Required Changes
Supplier Qualifications
Compliance Management
Foreign Sourcing Executives and Export
Government Agencies
Automated Export System and Census Bureau
United States Principal Partner of Interest
Export Licensing
Denied Parties
Deemed Exports
Bis Transshipment Country Export Control Initiative
Anti-Boycott Compliance
Department of Treasury
Department of State
Chapter 5 135
Risk Management and Insurance
When we choose to operate in foreign markets, we have
various insurance exposures that we now entertain. This
chapter takes a hard look at identifying the various exposures,
categorizing them, and offering risk management
strategies to eliminate or mitigate.
We would not build a facility today without a sprinkler
and alarm system as a method of managing the risks of fire
and burglary, so why would we build a supply chain in sourcing
from overseas suppliers and not build-in risk management
and loss control features?
This chapter outlines how we reduce the risks and maximize
our opportunity for a loss free global supply chain.
Insurance Exposures
Risk Management
Personnel
Kidnap and Ransom
Property and Liability
Contract and Business Relationship Management
Marine Cargo
Broker and Insurance Company
Scope of Coverage
Limits
Geographic Limitations
Modes of Transit
Currency
Contingency or Unpaid Vendor Coverage or
Difference in Conditions
Duty and Taxes
Terrorism Risk Insurance Act
War Strikes, Riots, and Civil Commotions
Political Risk, Receivables, and Export Credit
Ten Steps in Managing Political Risk Insurance
Selecting Broker or Underwriter
Service Requirements
Combining Risk
Communication
Contract Review
Political Risk Intelligence
Rates, Terms, Conditions
Export Credit
Loss Control
Claims Procedures
Loss Control Management
Chapter 6 169
Developing an Inbound Supply Chain Risk Management
Strategy
With all of the knowledge gained from the prior chapters, it is
now apropos to put it into motion and create a "plan of action."
The reader will have the specific tools provided for securing
a program to reduce risk and create the most competitive
environment to make the inbound (import) supply
chain work successfully.
Developing an Inbound Supply Chain Risk Management
Strategy
Spread of Risk
Applying Loss Control to Foreign Partners
Engage Foreign Partner
Exercise Patience
Invest in the Relationship
Managing the International Communication Terms
Supply Chain Standard Operating Procedures
Technology Options
Competitive Advantage
Compliance and Security Management
Federal Corrupt Practices Act
Radio Frequency Identification: Supply Chain Compliance
and Security Tool
Sarbanes-Oxley
Best Practices: Ten Step Management Approach
Chapter 7 211
Closing Remarks
Glossary 215
Guide to Abbreviations and Acronyms 227
Appendix 233
Import Regulations Reference Guide
Guidance on Reexports
FDA Enforcement
Tips for New Importers and Exporters
Managing the North American Free Trade Agreement
USA/Canada/Mexico
Inbound Customs Manifest Requirements
Outline of Terrorism Act of 2002
Key to International Web Sites
Index"