SCMT $3643$ Exam $1$ Study Guide

Lesson $4$: International Sourcing

Video $4\mathrm{.}1$: International Sourcing

Motivations: have access to cheaper products$/$raw materials, access to products of higher quality, increase bargaining power with domestic suppliers, risk management strategy, quickly react to disruption, secure sale to otherwise restricted markets.

Possible supply channels

Structure: distribute in the importer country, agent, ETC, from the manufacturer

Video $4\mathrm{.}2$: International Sourcing Issues

Opportunities and problems in global sourcing: $($e$.$g$.$ Cultural differences, working conditions vary, etc$)$

Choosing a supplier country: political and economic stability, infrastructure $($transportation$,$ power, banking, legal$)$