1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice.
1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice.
2. Apply essential elements of core logistic and supply chain management principles.
3. Analyse and identify challenges and issues pertaining to logistical processes.
Assignment Workload:
This assignment is an individual assignment.
Critical Thinking
Outsourcing and offshoring initiatives can help an organization fine-tune its business model to become more resilient and profitable. At the same time, these initiatives present challenges.
In today’s highly competitive, extremely variable, and dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third-party logistics firms.
Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company.
Questions: Each Question Carrying 2.5 Marks.
Define the working procedure of third-party logistics firms. (300-400 Words)
Explain the different motivational factors for going internationally. (300-400 Words)
On what ground do companies choose developing country’s location for offshoring? Use examples. (Mention the country and decisive factors). (300-400 Words)
Why do companies outsource? (Use the example of any Saudi company along with its objective and scope for outsourcing). (300-400 Words)
The Answer must follow the Keyword/ outline points below:
Outsourcing, offshoring, Third Party Logistics
Their Main functions
Motivational Factors /Drivers
Any local example
Reasons with suitable Examples
Reference
Note: You can support your answer by reading chapter 4 of your book.
You can use secondary sources available on the internet. Please use APA-style referencing.
Textbook
Harrison, A., & van Hoek, R. (2011). Logistics management & strategy: Competing through the supply chain (4th ed.). Essex, England: Prentice Hall. ISBN: 9780273730224 (print version); ISBN: 9781447915768 (electronic version).
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