Identify various emerging issues in international purchasing

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-Just-in-time system
The just-in-time system of goods delivery is widely accepted in international trade, in
particular in the context of manufactured goods. It requires inventory to reach a production
place precisely when it is needed. Thus, a supply chain is designed to reduce problems in the
flow of materials, components, and finished goods across the parties involved in the
international movement of cargo. In order for the supply chain to function, all the parties
concerned need high performance in terms of punctuality, rapidity and reliability in addition
to the traditional criteria of price and operating time. Also, each link of the chain needs to be synchronized, otherwise there would be little gains.

-Supply chain security
The loss of cargo shipments through theft and misrouting used to be a main security element
in the supply chain. In the light of increasing threats of terrorism, however, it has emerged
that the mantra of the international supply chain “getting the right product to the right place
at the right time” has been modified by adding “without compromising the national
security”(Waduge, 2003). The whole security level of a supply chain is heavily affected by
the level of security in all the parties concerned (Dulbecco and Laporte, 2003). In other
words, any security effort might be in vain if a party in the supply chain fails to achieve a
minimum level of security.

-Just-in-case system
Considering recent natural, political or technological disruptions to the international supply
chain, the system has moved away slightly from reliance on “just-in-time” delivery to the
“just-in-case” system, in which a supply chain has a certain degree of flexibility with a sound
contingency plan. There is a need to consider just-in-case suppliers, vendors, or logistics as
well as just in- case inventory. It is increasingly recognized that it is too dangerous to rely
heavily on a single source or logistics. A back-up system may be needed to mitigate
uncertainty. As the just-in-case system may raise costs, it may be necessary to consider the
balance between the level of security and extra costs in the supply chain.

-Outsourcing to local parties
It is observed that many large companies have outsourced their production and service
business to local companies. This is partly because they increasingly recognize the benefits of
exploiting local companies’ in-depth knowledge of local markets and Customs. In the
logistics area, companies specialized in logistics activities; called third party logistics (3PL),play an important role in the international supply

Titany answered the question on November 26, 2021 at 13:14

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Identify various emerging issues in international purchasing

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