1.

Supply chain management

Supply chain management is the process and activity of sourcing the raw materials or
components an enterprise needs to create a product or service and deliver that product or service
to customers.
2. Component of supply chain management: 6 factors
Planning—Enterprises need to plan and manage all resources required to meet customer
demand for their product or service. They also need to design their supply chain and then
determine which metrics to use in order to ensure the supply chain is efficient, effective, delivers
value to customers, and meets enterprise goals. (Trello)
Sourcing—Companies must choose suppliers to provide the goods and services needed to create
their product. After suppliers are under contract, supply chain managers use a variety of
processes to monitor and manage supplier relationships. Key processes include ordering,
receiving, managing inventory, and authorizing supplier payments.
Making—Supply chain managers coordinate the activities required to accept raw materials,
manufacture the product, test for quality, package for shipping, and schedule for delivery. Most
enterprises measure quality, production output, and worker productivity to ensure the enterprise
creates products that meet quality standards.
Delivering—Often called logistics, this involves coordinating customer orders, scheduling
delivery, dispatching loads, invoicing customers, and receiving payments. It relies on a fleet of
vehicles to ship product to customers. Many organizations outsource large parts of the delivery
process to specialist organizations, particularly if the product requires special handling or is to be
delivered to a consumer’s home.
Returning—The supplier needs a responsive and flexible network to take back defective, excess,
or unwanted products.  If the produce is defective it needs to be reworked or scrapped.  If the
product is simply unwanted or excess it needs to be returned to the warehouse for sale.
Enabling—To operate efficiently, the supply chain requires a number of support processes to
monitor information throughout the supply chain and assure compliance with all regulations.
Enabling processes include finance, HR, IT, facilities, portfolio management, product design,
sales, and quality assurance.
3. The relationship between design and supply chain management
OUTSOURCING, ONSHORING, NEARSHORING, OFFSHORING
Outsourcing: means engaging third-party vendors on a contract basis to deliver a specific
deliverable.
Onshoring: is the transfer of your software development to non-metropolitan areas within your
own country. Consider a city like London: rent, bills, and wages are all much higher than the rest
of the country. By building a development team in a nearby town instead, you can keep expenses
a bit lower.
Nearshoring: nearshoring means ‘near’ to home, but not quite. To give an example, developers
in Los Angeles are very expensive, and there’s no easy “onshoring” alternative. Good Mexican
developers, however, work in a similar time zone and would with much lower costs.
Offshoring: is nearshoring without the proximity restriction. You build an independently-
functioning development team, anywhere in the world, and everyone on that team is a full-time
employee of your company.
4. 5 global sourcing arrangement
Wholly owned subsidiary 

A company whose entire stock is held by another company, called the parent company. The
subsidiary usually operates independently of its parent company – with its own senior
management structure, products and clients – rather than as an integrated division or unit of the
parent. 

Overseas Joint Venture 

An international joint venture occurs when two businesses based in two or more countries form a

partnership. A company that wants to explore international trade without taking on the
full responsibilities of cross-border business transactions has the option of forming a joint
venture with a foreign partner. 

In-bond plant contractor 

A construction bond is a type of surety bond used by investors in construction projects. The bond
protects against disruptions or financial loss due to a contractor's failure to complete a project or
failure to meet project specifications. ... The three main types of construction bonds are bid,
performance, and payment. 

Overseas independent contractor 

An independent contractor is a person, business, or corporation that provides goods or

services under a written contract or a verbal agreement. Unlike employees, independent
contractors do not work regularly for an employer but work as required, when they may be
subject to law of agency. If that person or a firm sits in another country/market, it is called
overseas. 

Independent overseas manufacturer 

Contract manufacturing is when a company arranges to have a local or overseas manufacturer

make all or part of the product. Typically, the hiring firm provides design or formula to the
contract manufacturer to replicate or improve. If that person or firm sits in another
country/territory, it is called overseas.
5. Immigrant Labor

A migrant worker is a person who either migrates within their home country or
outside it to pursue work. 

Individuals around the globe migrate for a broad variety of reasons, which can be
conceptualized in two general terms: “push” and “pull” factors

Pull factors are factors which encourage ppl into a country meaningful factors which
pull ppl into the labor market   (Educational opportunity, temperate weather, job
placement, and cultural attraction are all reasons why someone might emigrate from
one country to another, or one region to another)

-         Job opportunities, the employment rate is higher in richer nations where per
capital incomes even adjusted for purchasing power are higher

EX: we think about jobs in for example construction, health and social care, in
farming, in cleaning and catering, particularly in hospitality and tourism from hotels
to coffee shops. Lots of job opportunities offering higher monthly wages if you like
compared to lots of emerging countries in the European Union

-         Goods access to key public services such as education and health and social
housing

-         Hysteresis effects-new migrants tend to go where others have successfully moved

(Hysteresis effects which is where the long term path migration is influenced by the
success of otherwise of previous generations who have come in new migrants tend to
go where others from their community have successfully moved)

EX: The Bangladesh community in London or perhaps the surge of the number ppl
from Poland who came to UK to live and work and other countries including Bulgaria
and Romania, Czech Republic

-         Higher minimum wages in some countries + access to higher state welfare benefits

Push factors are factors which push ppl away from a country perhaps forcing them
eventually to leave

-         Civil conflict

-         Poor working conditions

-         Low relative wages

(Ppl often push out of a culture by civil conflict by political instability, by threats to
their democractic rights and limbs and liberties relatively poor working conditions
and relatively low wages in the country of origin rather the country of destination)
 Ex: America is a nation of immigrants. America’s historical openness to immigration
has enriched its culture, expanded economic opportunity, and enhanced its influence
in the world. Immigrants complement native-born workers and raise general
productivity through innovation and entrepreneurship.  

 Brain drain

-        The loss by a country of its most intelligent and best-educated people

-        Record numbers of immigrants are moving to OECD countries in search of jobs
-        When skilled workers migrate from developing countries they do so for
professional opportunities and economic reasons

Ex: Only 3 of the 18 winners of the Road to Olympia returned to Vietnam

….

 Reverse brain drain

-        The growth of outsourcing and the movement of highly educated,

technologically skilled employees research scientists to other countries
EX: A nation such as Germany admitted foreign workers on a temporary basis  when
needed ( the so-called guest workers), but refused to renew work permits during
domestic economic downturns when the foreign workers were no longer needed. By
doing so, Germany more or less insulted its economy and its labor force from
economic downturns and imposed the adjustment problem on sending nations such as
Turkey, Algeria, and Egypt, which are poorer and less capable of dealing effectively
with the resulting unemployment

 Illegal immigration refers to the migration of people into a country in violation of the
immigration laws of that country, or the continued residence of people without the legal right to
live in that country. Illegal immigration tends to be financially upward, from poorer to richer
countries.[1] Illegal residence in another country creates the risk of detention, deportation, and/or
other sanctions.[2]

Ex: 39 Vietnamese illegal migrant died in a UK’s truck