Current Lecture Lecture 17Chapter 11- Global Location DecisionsSupply Chain costs and revenues are affected by the location of your facilitiesSCM 3301 1st EditionCurrent Lecture Lecture 17Chapter 11- Global Location Decisions- Supply Chain costs and revenues are affected by the location of your facilitiesManufacturing, service, warehousing, retailo Transportation Costso Labor, material, and energy costso Service levelso Access to customerso Facility and land costs- Acquiring and Maintaining a physical location is a strategic decisionGlobal Location Strategies- Offshore Factoryo Manufactures products at low cost with minimal technical and managerial resources- Source Factoryo Manufactures products at low cost but with skilled workers and significant managerial resources- Server Factoryo Factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs.- Contributor Factoryo Focused on product development and engineering for products that they manufacturer.- Outpost Factoryo Factory set up in an area with an abundance of advance suppliers, competitors, research facilities, etc.- Lead Factoryo Source of product and process innovation and competitive advantage across the entire organization (World-Class)Notes: Factories can evolve several of these categories over the decades.Global Market and Country Selection- Trade Agreements and Policieso World Trade OrganizationSCM 3301 1st Editiono NAFTA, EU, Southern Common Market (MERCOSUR)- Nation Competitivenesso Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure. Top Three: Switzerland, United States, and Singapore.- Government Taxes and Incentiveso Tariffs (federal tax) design to protect local businesses- Current Stabilityo Hedge strategies to protect against currency fluctuations.Sub-Region or State Selection- Environmental Issues- Access and Proximity to Markets- Right to Work Laws- Access to SuppliersCommunity and Site Selection- Labor Issues- Utility Availability and Cost- Quality of Life Issues- Land Availability and
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