The elements of global supply chain management include manufacturing compatibility, manufacturing configuration, coordination and control, quality control, inventory management and the process of making or buying decisions. In this context, compatibility refers to the consistency between foreign investment decisions and the organization's competitive strategy. Company strategies include efficiency/cost, dependability, quality, flexibility, and innovation. Managers need to figure out the configuration of manufacturing facilities. There are three basic configurations that MNE's consider in order to create a global manufacturing strategy. The first is a central manufacturing facility and to offer a selection of lower-priced products to different markets.
[...] Setting up a manufacturing station in the Czech Republic would not necessarily require the acquisition of any other businesses or land even, within the Western European region. A company may want to move its resources—capital, personnel, or technology—from its facilities in one country to its facilities in another. For example, it may decide to move capital to a country where the projected return is higher, hurting the performance in the other country but improving its global or overall performance. Decisions about these moves usually occur centrally because making them requires information from all operating units. [...]
[...] According to the U.S.-based Council of Logistics Management, “logistics 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.” (Daniels, 2004) Materials management involves the movement and management of materials and products from purchasing straight through to production. The difference between supply chain management and logistics is just of degree because logistics are centered around the transportation and storage of materials and goods, unlike supply chain management, which goes further to include the management of both the supplier and customer relations. [...]
[...] (Daniels, 2004) These issues will prove somewhat less challenging should Riordan decide to set up a base in the Czech Republic and then situate supply centers within the surrounding countries. Travelling is less complicated should a decision for example in Italy need an executive from the Czech Republic's branch, the executive can travel and be there within a few hours. The challenging component will when the company needs an executive from the main branch located in the US. Conclusion In conclusion, the Czech Republic has advantages and disadvantages when being considered as a location to set up a main base to take care of the European for Riordan with better ease. [...]
[...] Since Riordan is an American company, the supply chain managers should understand the details of the logistics surrounding the Czech Republic, for example, American companies are required, by law to submit a commercial invoice, landing bill and a shipper's declaration whenever there is exporting into the Czech Republic. This should be noted should Riordan decide to solely ship product to the EU rather than set up an entire base there. According to the World Fact Book, “Domestically, the "Czech Made" mark is the award given to products which are judged to be of outstanding quality, environmentally friendly and favorable to energy consumption. [...]
[...] These can prove to be very feasible with the Czech Republic; it is all dependant on whether the supply chain manager takes the “Made in Czech Republic” honor as an important tool for the country's marketing and success. Since the formation of the European Union, the Czech Republic's trade and manufacture capabilities along with the citizens' labor improvements, has catapulted into success for several foreign companies looking to expand into the Western European area (EIU Viewswire, 2008). Means of Control Riordan's business objectives call for the following means of control to be considered. [...]
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