Last Attempt CSCP Questions

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

• Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.
• Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.
• Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.

References:

• Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."
• Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."

The Ten Principles of the UN Global Compact cover areas related to human rights, labor, environment, and anti-corruption. Principle 6 specifically states the elimination of discrimination in respect of employment and occupation, which includes ensuring fair wages. However, paying different wages in different parts of the world for a given job classification can be acceptable if it reflects local living standards and economic conditions, ensuring fair compensation in each context.

• Preventing a group of employees from forming a collective bargaining (union) group violates Principle 3, which supports the right to collective bargaining.
• Requiring an individual to pay a fee for consideration in hiring or promotion decisions breaches principles related to non-discrimination and fair labor practices.
• Withholding certain employment opportunities from specific groups of people directly violates Principles 1 and 6, which promote human rights and anti-discrimination.

References:

• United Nations Global Compact. (2021). "The Ten Principles of the UN Global Compact."
• International Labour Organization (ILO). (2021). "Global Wage Report 2020-21."

Managing global risks requires strategies that allow a supply chain to adapt quickly to unexpected changes or disruptions. Flexibility in the supply chain can help manage global risks by enabling companies to adjust their operations in response to unforeseen events, such as natural disasters, geopolitical tensions, or changes in market demand. This might involve diversifying suppliers, utilizing multiple transportation modes, or adopting flexible manufacturing systems.

• Direct shipment refers to sending products directly from supplier to customer, which might not address broader global risks.
• Cross-docking is a logistics practice that involves unloading goods from inbound transport and loading them directly onto outbound transport, without warehousing. It optimizes efficiency but does not inherently manage global risks.
• Mass customization is a production strategy that combines elements of mass production and customization but does not directly address global risk management.

References:

• Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."
• Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."

• ISO 14000 Series: This set of standards provides practical tools for companies and organizations looking to manage their environmental responsibilities.
• ISO 14001: Specifies requirements for an environmental management system (EMS) to help organizations improve their environmental performance through more efficient use of resources and reduction of waste.
• Purpose: These standards are designed to help organizations comply with environmental legislation and regulatory requirements.
• Explanation of Choice:

References:

• International Organization for Standardization (ISO). (2015). ISO 14001: Environmental Management Systems - Requirements with Guidance for Use. ISO.
• Epstein, M. J., & Buhovac, A. R. (2014). Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental, and Economic Impacts. Berrett-Koehler Publishers.