Supply Chain Management

Homework: Case #1: Sourcing and Logistics Ch.6 and 7

1. Read the article from Wall Street Journal: LINK:
https://www.wsj.com/articles/for-more-chinese-firms-it-pays-to-make-it-
in-the-u-s-a-148812793
2. Answer the questions related to the article.
3. Discover the web page of Scotts Miracle-Gro.
4. Answer the questions related to the company information on their
website and related to Sourcing and Logistics.
5. Wright a report of a 1 sided letter and upload to BBlearn.

QUESTION 1
1. Read this article: https://www.wsj.com/articles/for-more-chinese-firms-it-
pays-to-make-it-in-the-u-s-a-1488127931
What is the main reason for Chinese companies to invest in building new production
facilities in the USA?

QUESTION 2
1. What do they mean by Greenfields?

QUESTION 3
1. How much capital did Chinese companies spent last year regarding production
facilities in the USA?

QUESTION 4
1. What can be a good alternative for Chinese companies besides investing in the
USA when it comes to sourcing?

QUESTION 5
1. What about companies in the USA who are manufacturing their products in
China? What can be a good alternative for them when the imports tax is going to raise
at roughly 45%?

QUESTION 6
1. https://scottsmiraclegro.com/
Scotts Miracle-Gro is a company with a huge sourcing network which mainly has to
do with off-shoring. In which continents do we find them?
QUESTION 7
1. Sourcing: If we zoom in to the Chinese manufacturing plants what can be a
wise strategic decision if import taxes are going to change? Take their opportunities in
already off-shoring in consideration.

QUESTION 8
1. For example. They close all of their businesses in China and build more
manufacturing capacity in the USA. What will happen to their logistics? Requirement:
You have to use all 7 tasks of logistics to support your thoughts.

QUESTION 9
1. What can be a strategic decision if they have to provide their American
produced grass seeds to the Brazilian marked? Note: They are not active in Brasil and
they don't have the capital to build manufacturing plants in Brazil. What kind of
logistics would be wise? And more specific what kind of transport is the most
efficient? Another note: Grass seed is considered a mass product and heavy weight.

QUESTION 10
1. Write/type a 1 sided letter report in Microsoft Word and upload to BBlearn
when finished.
Advise Scotts Miracle Gro about their Supply Chain Management when the
government is going to decide to raise the import tax to 45% for all foreign countries.
Your report contains mainly sourcing and Logistics strategic advise but may also
contain other SCM related sentences. Make sure you support every single advise with
the correct (key) terms.
Your report must contain the following 10 key terms from your book:
1. Reverse Logistics
2. Transportation
3. Storage
4. Cross-Docking
5. Inventory control
6. Sourcing
7. Purchasing
8. Operational impact
9. Innovative
10. Risk mitigation