Global Supply Chain Logistics Flashcards
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Read the first 7 Global Supply Chain Logistics flashcards as text
What is the Harmonized System (HS) code used for in international trade?
Answer: Classifying traded products for customs and tariff purposes
HS codes are internationally standardized numerical codes used to classify traded products, which determines applicable tariffs and trade statistics.
Which logistics strategy involves positioning inventory closer to end customers to reduce delivery time?
Answer: Forward deployment / forward positioning
Forward deployment places inventory in regional distribution centers or local warehouses closer to the customer to minimize last-mile delivery time.
In global logistics, what does 'demurrage' refer to?
Answer: Fees charged when a container is not returned to the carrier within the free time period
Demurrage is a fee charged by carriers or terminal operators when containers are not picked up or returned within the agreed free time period.
What is the role of a customs broker in international trade?
Answer: Acting as a licensed agent to clear goods through customs on behalf of importers
A licensed customs broker prepares and submits customs entries, pays duties, and ensures regulatory compliance for importers.
Which global trade risk is best mitigated by using Letters of Credit (LC)?
Answer: Payment default risk between buyer and seller
Letters of Credit provide bank-guaranteed payment to sellers upon presentation of compliant shipping documents, mitigating payment default risk.
What does 'multi-modal transportation' mean in supply chain logistics?
Answer: Combining two or more transportation modes under one contract to move goods
Multi-modal transportation combines different transport modes (e.g., ocean + rail + truck) typically under a single bill of lading or contract.
What is the primary purpose of supply chain visibility tools in global logistics?
Answer: To provide real-time tracking of inventory and shipments across the entire supply chain
Supply chain visibility tools provide real-time data on inventory levels, shipment status, and potential disruptions across all nodes of the supply chain.