APICS CSCP Exam With Confidence Using Practice Dumps

The primary business advantage of developing an international supply chain is to realize economies of scale in production and distribution. Here's why:

• Economies of Scale: By sourcing and manufacturing on a global scale, companies can produce larger quantities at lower costs per unit. This includes benefits from bulk purchasing of raw materials and components.
• Cost Advantages: Access to lower-cost labor and materials in different regions can significantly reduce production costs.
• Market Expansion: An international supply chain allows companies to distribute products to a broader market, increasing sales volumes and spreading fixed costs over a larger base.
• Specialization: Companies can take advantage of specialized skills and technologies available in different countries, enhancing production efficiency and product quality.

References:

• Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Direct shipping from the manufacturer to the customer, bypassing distribution centers or warehouses, reduces inventory obsolescence. This is because products spend less time in storage and are delivered more quickly to customers, minimizing the risk of inventory becoming outdated or unsellable. Direct shipping can also improve inventory velocity, as products are moved directly to their end destination without intermediate storage, thus reducing the time they spend in the supply chain.References:

• "The Handbook of Logistics and Distribution Management" by Alan Rushton, Phil Croucher, and Peter Baker
• "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl

Vertical integration refers to the process where a company expands its operations into different stages of production within the same industry. Here's a detailed breakdown:

• Definition of Vertical Integration: This involves a company controlling multiple stages of the supply chain, from raw materials to the finished product.
• Examples of Vertical Integration:
• Benefits of Vertical Integration: Improved coordination, increased control over the supply chain, reduced dependency on suppliers, potential cost savings, and better quality control.

References

• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• Harrigan, K. R. (1984). Formulating Vertical Integration Strategies. Academy of Management Review, 9(4), 638-652.