CE Supply Chain & Supplier Relationship Management Flashcards

What is global supply chain management in the context of exporting and why is it critical?

Answer: The coordination of sourcing, production, logistics, and distribution across international borders to deliver goods efficiently and cost-effectively to end markets

Global supply chain management integrates all activities from raw material sourcing through final delivery across international suppliers, manufacturers, and logistics providers to optimize cost, quality, and speed.

What is a vendor qualification process and what are the key criteria U.S. exporters use to evaluate international suppliers?

Answer: A systematic evaluation of potential suppliers using criteria including financial stability, quality certifications, capacity, compliance record, and delivery performance

Vendor qualification assesses whether a potential supplier can consistently meet quality, delivery, compliance, and financial requirements before being approved as a supply chain partner.

What is a Service Level Agreement (SLA) in an international supplier contract and what should it specify?

Answer: A contract clause defining measurable performance standards (delivery time, defect rates, response times) that the supplier must meet, with consequences for non-compliance

An SLA establishes quantifiable performance benchmarks, inspection standards, and remedies (penalties, cure periods, termination rights) to hold international suppliers accountable.

What is the concept of 'supply chain visibility' and why has it become increasingly important for U.S. exporters?

Answer: Real-time tracking and monitoring of inventory, shipments, and supplier activities across the entire supply chain, critical for risk management and customer service

Supply chain visibility uses technology (IoT, TMS, ERP systems) to track goods and information flows in real time, enabling faster responses to disruptions, compliance monitoring, and delivery accuracy.

What is nearshoring and how has it changed U.S. supply chain strategies in recent years?

Answer: Moving production or sourcing from distant countries (e.g., Asia) to geographically closer countries (e.g., Mexico, Central America) to reduce lead times and geopolitical risk

Nearshoring reflects a strategic shift by U.S. companies to relocate supply chains closer to home—especially to Mexico under USMCA—to reduce transportation time, costs, and exposure to distant disruptions.

What is a supply chain risk assessment and what categories of risk should U.S. exporters evaluate?

Answer: A systematic evaluation of supply chain vulnerabilities including geopolitical risk, supplier financial stability, natural disaster exposure, regulatory/compliance risk, and single-source dependency

A supply chain risk assessment identifies and quantifies risks across political, natural, financial, operational, and regulatory dimensions to develop mitigation strategies and contingency plans.