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Logistics
Logistics, or materials management, is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers requirements
Compatibility
The degree of consistency between FDI decisions and a companys competitive strategy. Some company strategies that managers must consider:
Efficiency/cost Dependability Quality Innovation Flexibility
Manufacturing Configuration
Three broad categories of manufacturing configuration are:
centralized facility regional facilities multidomestic facilities
Information Technology
EDI (electronic data interchange) ERP (enterprise resource planning) MRP (material requirements planning) E-commerce Private technology exchange (PTX)
Quality
Quality is defined as meeting or exceeding the expectations of customers. Quality standards can be:
general (ISO 9000) industry-specific company-specific (AQL, zero defects, TQM, and Six Sigma)
Supplier Networks
Sourcing: the process of a firm having inputs supplied to it from outside suppliers (both domestic and foreign) for the production process. Domestic sourcing allows the company to avoid problems related to:
language culture currency tariffs, and so forth
Foreign sourcing allows the company to reduce costs and improve quality, among other things
Outsourcing
Major outsourcing configurations:
Vertical integration. Outsourcing through industrial clusters. Other outsourcing.
Supplier Relations
When a company sources parts from suppliers around the world, distance, time, and the uncertainty of the international political and economic environment can make it difficult for managers to manage inventory flows accurately
Transportation Networks
The transportation system links together suppliers, companies and customers Foreign trade zones (FTZs) - special locations for storing domestic and imported inventory in order to avoid paying duties until the inventory is used in production or sold.