Course Title: GSCM

Term paper
Topic: GSCM Assignment Questions

Submitted To: Ms. Aditi Mahajan

Submission Date: 9th Dec 2024

Submitted by : Dhruv Gaba (A25601923041)

Ambika Adhikari (A25601923044)

Course : Masters of Business Administrations (2023-2025)

Q1. Discuss the significance of supplier network development for global supply chains.

Ans-1
Supplier network development plays a crucial role in the success and efficiency of global supply
chains. Here’s a discussion of its significance:
1. Cost Optimization: Developing a robust supplier network allows companies to
source materials and components from the most cost-effective suppliers worldwide. By building
strategic relationships with suppliers, firms can negotiate better terms, optimize pricing, and
reduce overall production costs, which is vital in global competition.
2. Risk Management: Global supply chains are susceptible to risks such as political
instability, natural disasters, and fluctuations in exchange rates. A well-developed supplier
network helps mitigate these risks by diversifying sources of supply, reducing dependence on
any single supplier or region, and ensuring a more resilient supply chain.
3. Quality Control: Supplier network development allows for closer collaboration
between companies and their suppliers, ensuring that quality standards are met consistently.
4. Flexibility and Agility: In global supply chains, businesses need the ability to
quickly adapt to changes in demand, product specifications, or disruptions. A well-developed
network of suppliers offers the flexibility to shift sourcing strategies or alter production schedules
without causing significant delays or costs.
5. Innovation and Competitive Advantage: Supplier collaboration can drive
innovation. Suppliers who understand a company’s long-term goals may offer new materials,
processes, or technologies that help improve product offerings or production efficiency.
6. Sustainability and Ethical Sourcing: With increasing global attention on
environmental sustainability and ethical sourcing, companies must ensure that their suppliers
adhere to social and environmental standards.

Q2. Explain the documentation requirements and liabilities in an international supply chain.

Ans-2
In an international supply chain, accurate documentation and understanding liabilities are
essential for the smooth flow of goods and compliance with regulations. Below is an explanation
of the documentation requirements and liabilities in international trade, broken down into key
points:
Documentation Requirements:
1. Commercial Invoice:
• A detailed bill from the seller to the buyer, listing the goods, their value,
quantities, and terms of sale.
• Used by customs authorities to assess duties and taxes and to verify the value of
goods for customs clearance.
2. Bill of Lading (B/L):
• A contract between the shipper and the carrier that also serves as a receipt for
the goods.
• Acts as a document of title, enabling the buyer to claim goods at the destination
port.
 3. Packing List:
• Provides a detailed inventory of the goods, including weights, dimensions, and
descriptions of each item.
• Helps in customs inspections and ensures the correct goods are shipped.
4. Certificate of Origin:
• Verifies the country of origin of the goods, which is crucial for determining
eligibility for preferential tariffs or trade agreements.
• Required for customs clearance and to comply with international trade rules.
5. Customs Declaration:
• Submitted to customs authorities, detailing the goods being imported or exported.
• Required to comply with national laws and facilitate the accurate assessment of
duties, taxes, and regulatory compliance.

Liabilities in an International Supply Chain:

1. Transportation Liability:
• Responsibility for goods during transit depends on the Incoterms (e.g., FOB,
CIF).
• The seller may be liable until goods are delivered to the carrier, while the buyer
assumes risk once goods are in transit.
2. Customs Duties and Taxes:
• The importer typically bears the liability for paying customs duties and taxes.
• Incorrect declarations can lead to fines, delays, or the seizure of goods.
3. Contractual Liabilities:
• Liabilities arising from breaches of contractual terms, such as delivery delays,
non-compliance with quality standards, or failure to meet payment terms.
• Both buyer and seller are legally bound by the agreed terms in their contract.
4. Intellectual Property Liabilities:
• Importing/exporting counterfeit goods can lead to legal penalties, including fines
or seizure of goods.
• Sellers and buyers must ensure they are not infringing on IP laws.
5. Liability for Non-Compliance:
• Failure to comply with trade regulations (e.g., sanctions or export controls) can
result in severe fines, reputational damage, and loss of market access.

Q3. Discuss the application of ERP systems in managing global supply chains.

Ans-3
1. Integration of Business Processes:
ERP systems integrate core business functions such as procurement, inventory management,
production planning, order processing, and finance into a single platform. This integration helps
streamline operations across different geographies, allowing businesses to manage their global
supply chains efficiently. For example, an ERP system enables seamless communication
between procurement teams in one country and production facilities in another, ensuring the
smooth flow of goods and information.
2. Real-Time Data and Visibility:
One of the key advantages of ERP systems is real-time data sharing. Global supply chains
often involve multiple suppliers, manufacturers, and distributors, making it challenging to track
inventory and shipments. ERP systems provide real-time updates on stock levels, production
schedules, and shipments, enabling businesses to monitor their supply chain’s performance
continuously. This enhanced visibility helps companies identify potential bottlenecks or
disruptions early, allowing for quicker corrective actions.
3. Demand Forecasting and Inventory Management:
ERP systems use historical data and advanced analytics to forecast demand across different
markets. This helps companies optimize inventory levels and avoid stockouts or overstocking,
which is particularly important in global supply chains where transportation times and lead times
vary. By aligning production with demand forecasts, businesses can reduce inventory holding
costs while ensuring they meet customer demand globally.
4. Supplier and Partner Management:
ERP systems facilitate the management of relationships with global suppliers and partners. By
centralizing supplier information, order histories, and contract terms, ERP systems improve
procurement efficiency. Companies can monitor supplier performance, evaluate quality, and
ensure compliance with contractual obligations. Moreover, the system can automate purchase
orders and track supplier deliveries, reducing manual errors and improving the overall supplier
relationship.
5. Compliance and Regulatory Management:
Operating in multiple countries means dealing with varying regulatory requirements. ERP
systems can be configured to ensure compliance with local laws, customs regulations, and
trade tariffs. They help manage documentation for customs, track import/export processes, and
generate reports to meet regulatory standards, reducing the risk of penalties or delays.
6. Improved Decision-Making and Reporting:
ERP systems provide powerful reporting and analytics tools that help management make
informed decisions. By consolidating data from across the supply chain, the system can
generate comprehensive reports on inventory levels, order status, production efficiency, and
supplier performance. This allows for better strategic planning and resource allocation

Q4. Evaluate the impact of lean thinking on supply chain waste elimination.

Ans-4

The primary goal of lean thinking is to optimize processes by identifying and reducing activities
that do not add value. Here's an evaluation of its impact on supply chain waste elimination:
1. Waste Identification and Reduction:
Lean thinking identifies seven types of waste (muda): overproduction, waiting, transportation,
excess inventory, unnecessary motion, defects, and underutilization of talent. In supply chains,
these forms of waste can lead to inefficiencies and higher costs. Lean principles encourage
continuous improvement (kaizen) to minimize or eliminate these wastes. For example, reducing
excess inventory through better demand forecasting or implementing just-in-time (JIT) inventory
management reduces holding costs and the risk of obsolescence.
2. Streamlined Processes:
Lean methods focus on optimizing processes to ensure that every step adds value. This can
involve reengineering supply chain workflows, improving supplier relationships, or reducing lead
times. By eliminating non-value-added activities and improving the flow of goods, businesses
can lower operating costs, enhance product quality, and increase responsiveness to customer
demands.
3. Just-in-Time (JIT) and Inventory Management:
One of the core principles of lean thinking is JIT, which aims to reduce excess inventory by
synchronizing production and supply with actual demand. JIT minimizes the holding of raw
materials, work-in-progress, and finished goods, thereby reducing storage costs and the
potential for inventory obsolescence. By using lean inventory strategies, supply chains become
more agile and can better respond to fluctuations in demand.
4. Improved Supplier Relationships:
Lean thinking fosters collaboration between companies and suppliers. By sharing information,
setting clear expectations, and working together to improve processes, companies can reduce
delays, improve lead times, and reduce procurement costs. This collaborative approach
minimizes waste associated with transportation, excess production, and poor-quality materials.
5. Enhanced Quality Control:
Lean thinking emphasizes quality at every stage of the supply chain, not just at the end of
production. Early identification of defects and waste in the process ensures that issues are
addressed before they escalate, reducing costly rework and returns.

Q5.What are the key elements of the international logistics system? Explain their
interdependence

Ans-5
1. Transportation:
Transportation is the backbone of international logistics, involving the movement of goods via
air, sea, road, and rail. Different modes are selected based on factors like cost, speed, and the
nature of the goods being shipped. Sea freight is often preferred for large, bulk shipments, while
air freight is used for high-value or time-sensitive products. The selection of the appropriate
transportation mode depends on the logistics needs of the supply chain.
2. Warehousing:
Warehousing involves storing goods at various points in the supply chain before they are
transported to their final destination. Warehouses act as distribution centers, facilitating
inventory management, order fulfillment, and consolidation of shipments. In international
logistics, warehousing helps manage lead times, particularly when there are delays in customs
or transportation.
3. Inventory Management:
Effective inventory management ensures that the right amount of goods is available at the right
time to meet customer demand without overstocking or understocking. In international logistics,
managing inventory involves coordination between suppliers, warehouses, and distributors, all
of which must be synchronized to minimize costs and avoid stockouts or excess inventory.
4. Customs and Documentation:
International logistics requires compliance with customs regulations, including import/export
documentation, tariffs, and taxes. Customs clearance processes are critical to ensuring that
goods are allowed to pass through borders without delays or fines. Accurate documentation is
necessary to avoid issues such as cargo hold-ups or penalties.
5. Information Systems:
Information technology plays a crucial role in tracking shipments, managing inventory, and
ensuring communication between stakeholders in different countries. Integrated IT systems,
such as Enterprise Resource Planning (ERP) and Transportation Management Systems (TMS),
allow real-time updates, visibility, and coordination across the global supply chain.

Q6. Discuss the challenges and strategies of centralized vs. decentralized logistics
management.

Ans-6
Centralized Logistics Management
Challenges:
1. Bureaucracy and Slow Decision-Making: In a centralized system, decisions are
typically made by a few top-level managers or a single location, which can result in slower
responses to issues and changes in demand.
2. Limited Flexibility: A centralized system can be less agile, as it may struggle to
quickly adjust to regional variations in market conditions, customer preferences, or local
disruptions.
3. Overburdened Infrastructure: Centralized systems often rely on a single or a few
hubs, which can become overburdened with large volumes, leading to delays, congestion, and
capacity issues.
Strategies:
1. Enhanced IT Systems: Implement advanced information systems to improve
visibility, real-time tracking, and data analytics. This can help mitigate slow decision-making and
ensure better coordination.
2. Optimization of Resources: Use data analytics to optimize warehouse space,
transportation routes, and inventory management, ensuring better resource utilization and
reducing .

Decentralized Logistics Management

Challenges:
1. Coordination and Consistency Issues: In a decentralized system, multiple
branches or regions handle logistics independently, which can lead to inconsistencies in service
levels, inventory management, and performance across locations.
2. Higher Costs: Decentralization may lead to redundant facilities and resources,
increasing overall operational costs. Managing multiple locations often results in inefficiencies
and higher labor and facility .
Strategies:
1. Standardized Processes: To maintain consistency across decentralized locations,
implement standardized procedures for inventory control, transportation, and customer service.
 2. Effective Communication and Coordination: Invest in communication tools and
software to improve information sharing across regions, allowing for better coordination and
quicker responses.

Q7.Describe the role of demand management models in supply chain performance.

Ans-7
Key Roles of Demand Management Models:
1. Forecasting Demand: Demand management models help businesses predict
customer demand based on historical data, market trends, and seasonality. Accurate demand
forecasting is essential for inventory planning, production scheduling, and capacity
management, reducing the risk of stockouts or overstocking. This leads to more efficient
resource allocation and cost management.
2. Inventory Optimization: By aligning inventory levels with demand forecasts,
businesses can reduce excess inventory and the associated holding costs. Demand
management models use techniques like Economic Order Quantity (EOQ) or Just-In-Time (JIT)
to maintain optimal stock levels, ensuring that inventory is available to meet customer needs
without tying up capital in unsold goods.
3. Production and Capacity Planning: Demand management models assist in
synchronizing production schedules with anticipated demand. This helps prevent production
bottlenecks, reduces lead times, and ensures that manufacturing resources are used efficiently.
By forecasting demand accurately, companies can avoid underproduction (leading to stockouts)
or overproduction (leading to excess inventory).
4. Customer Satisfaction: By predicting demand fluctuations and aligning supply
chain operations accordingly, companies can ensure product availability and timely deliveries.
Meeting customer expectations for product availability and delivery times enhances satisfaction,
loyalty, and competitive advantage.
5. Collaboration and Flexibility: Demand management models foster collaboration
among various supply chain partners—suppliers, manufacturers, and distributors—by sharing
demand forecasts and adjusting plans as needed. This flexibility allows the supply chain to
respond quickly to changes in demand, such as market shifts or unexpected disruptions.

Q8. Explain Material Requirement Planning (MRP) and its relationship with the Bill of Materials.

Ans-8
Material Requirements Planning (MRP) is a production planning and inventory control system
designed to manage manufacturing processes efficiently. It ensures that materials and
components are available for production and products are available for delivery to customers, all
while minimizing inventory levels. MRP aims to align manufacturing schedules with customer
demand, thus optimizing resource usage and reducing costs.
How MRP Works:
MRP uses a demand-driven approach, starting with the final product’s forecasted demand. It
breaks down the demand into specific material needs at various stages of production. The
system calculates the materials required, the quantity needed, and when to order or produce
based on lead times, available inventory, and the bill of materials (BOM). It helps prevent
stockouts, reduces excess inventory, and optimizes production planning.
Relationship with the Bill of Materials (BOM):
The Bill of Materials (BOM) is a critical input for MRP. The BOM is a comprehensive list that
defines the raw materials, sub-assemblies, components, and parts needed to manufacture a
product. It specifies the quantities required at each level of production.
In MRP, the BOM provides the foundational data for determining material needs. For example, if
a finished product requires a certain number of components, the BOM will break down how
many units of each component are needed at each production stage. The MRP system then
calculates the total materials required, taking into account inventory levels, production
schedules, and lead times.
Integration of MRP and BOM:
The relationship between MRP and BOM ensures that the right quantities of materials are
ordered and available at the right time. MRP relies on the BOM to generate detailed material
plans, and the BOM’s structure ensures that MRP can accurately calculate material
requirements across all levels of production. This synergy enables efficient production
scheduling, inventory management, and timely deliveries, improving supply chain effectiveness
and reducing waste.
In conclusion, MRP and BOM work together to streamline material planning, ensure timely
production, and optimize inventory control in manufacturing operations.

Q9. Discuss the importance of inventory control in international logistics.

Ans-9
1. Optimizing Supply Chain Efficiency:
Inventory control ensures that goods are available when needed for production or delivery. In
international logistics, where supply chains often span multiple countries and involve long lead
times, maintaining optimal inventory levels is essential for preventing disruptions. Proper control
systems prevent bottlenecks caused by insufficient inventory or delays in replenishment,
allowing goods to flow smoothly from suppliers to customers.
2. Reducing Costs:
Carrying excess inventory ties up capital and incurs storage, insurance, and handling costs. On
the other hand, stockouts can result in missed sales and potential penalties due to delayed
deliveries. Effective inventory management balances the need for sufficient stock with the aim of
minimizing these costs. Techniques like Just-In-Time (JIT) inventory, for example, help maintain
low stock levels while ensuring timely deliveries, improving overall cost efficiency.
3. Managing Demand Fluctuations:
In international logistics, demand can vary significantly across regions due to factors like
seasonal changes, local market trends, or geopolitical issues. Inventory control systems help
track and predict these fluctuations, allowing businesses to adjust stock levels accordingly.
Accurate forecasting ensures that companies are prepared for demand spikes without
overstocking, which can result in waste or obsolescence.
4. Enhancing Customer Satisfaction:
Timely deliveries and product availability are critical to customer satisfaction. Poor inventory
management can lead to delays, backorders, or stockouts, negatively affecting customer
relationships. By optimizing inventory levels and ensuring efficient replenishment processes,
companies can meet customer expectations for reliable, on-time deliveries in the global
marketplace.
In conclusion, effective inventory control is vital in international logistics for maintaining
operational efficiency, reducing costs, managing demand, and ensuring customer satisfaction
across borders.

Q10. Explain the concept of a balanced scorecard in supply chain performance measurement.

Ans-10
The Balanced Scorecard (BSC) is a strategic performance management tool that provides a
comprehensive framework for measuring and managing supply chain performance. Developed
by Kaplan and Norton, it goes beyond traditional financial metrics to evaluate a company’s
performance from four key perspectives: Financial, Customer, Internal Processes, and Learning
and Growth. Each perspective ensures that organizations monitor a broad range of factors that
contribute to long-term success in supply chain operations.
1. Financial Perspective:
This focuses on the financial outcomes of supply chain activities, such as cost reduction, return
on investment (ROI), or profitability. Key metrics might include cost per unit, inventory turnover,
and operating costs, ensuring that the supply chain is cost-efficient and contributes to financial
goals.
2. Customer Perspective:
This dimension evaluates how well the supply chain meets customer needs. Metrics like on-time
delivery, order accuracy, and customer satisfaction are tracked to ensure that the supply chain
provides high service levels, aligning with customer expectations and enhancing competitive
advantage.
3. Internal Processes Perspective:
The internal processes perspective focuses on optimizing the efficiency and effectiveness of
supply chain operations. Key metrics here might include cycle time, production lead time, and
inventory management. This dimension aims to streamline processes and eliminate
inefficiencies in sourcing, production, and distribution.
4. Learning and Growth Perspective:
This focuses on the development of capabilities and innovation within the supply chain. Metrics
include employee training, technology utilization, and process improvement initiatives. By
fostering a culture of continuous improvement, organizations can enhance supply chain
performance over time.
In summary, the Balanced Scorecard allows organizations to align supply chain strategies with
broader business objectives, offering a holistic approach to performance measurement that
drives both short-term operational efficiency and long-term strategic success.
Q11. What are the key performance indicators in logistics management? Discuss their
relevance.

Ans-11
Key Performance Indicators (KPIs) in logistics management are measurable values that help
organizations assess the efficiency, effectiveness, and performance of their logistics operations.
These indicators provide insights into the overall performance of supply chain activities and
guide decision-making for improvements. Below are some key KPIs and their relevance:
1. On-Time Delivery (OTD):
Relevance: On-time delivery is a critical KPI that measures the percentage of orders delivered
on or before the promised date. It directly impacts customer satisfaction and loyalty. High OTD
rates indicate efficient coordination between transportation, warehousing, and order fulfillment
processes.
2. Inventory Turnover:
Relevance: This KPI measures how frequently inventory is sold and replaced within a given
period. It helps evaluate how efficiently inventory is managed. High turnover rates suggest
effective inventory control, lower holding costs, and minimized risk of obsolete stock.
3. Order Accuracy:
Relevance: Order accuracy measures the percentage of orders shipped correctly without errors.
It is crucial for customer satisfaction, as errors in orders (wrong items or quantities) lead to
returns, increased operational costs, and dissatisfaction.
4. Freight Cost per Unit:
Relevance: This KPI evaluates the cost of transportation per unit of product delivered. It helps
monitor cost efficiency in the logistics process. Reducing freight cost per unit can enhance
profitability by optimizing transportation routes, modes, and carriers.
5. Warehouse Efficiency:
Relevance: This metric tracks warehouse performance, such as order picking accuracy, storage
utilization, and handling times. High warehouse efficiency reduces operational costs and
improves overall supply chain speed.
6. Lead Time:
Relevance: Lead time measures the time from order placement to delivery. Shortening lead time
enhances responsiveness, customer satisfaction, and operational efficiency.
In conclusion, KPIs in logistics management provide critical insights into performance, enabling
businesses to optimize operations, reduce costs, improve customer service, and drive overall
supply chain success.

Q12. Discuss the role of IT in enabling an efficient supply chain.

Ans-12
Information Technology (IT) plays a pivotal role in enabling an efficient supply chain by
enhancing communication, automation, and data visibility across the entire process. Below are
key ways IT supports supply chain efficiency:
1. Real-Time Data and Visibility:
IT enables the collection and sharing of real-time data across the supply chain, providing
visibility into inventory levels, order status, and shipment tracking. This transparency allows
companies to respond quickly to disruptions, reduce delays, and maintain optimal stock levels,
ensuring smoother operations.
2. Automation and Process Optimization:
IT systems, such as Enterprise Resource Planning (ERP) and Warehouse Management
Systems (WMS), automate key processes like order processing, inventory tracking, and
scheduling. Automation reduces human error, speeds up operations, and increases accuracy, all
of which enhance supply chain efficiency.
3. Data Analytics and Forecasting:
IT allows for the collection and analysis of vast amounts of data, enabling better demand
forecasting, inventory planning, and decision-making. Predictive analytics help businesses
anticipate demand fluctuations, optimize production schedules, and improve inventory
management, minimizing costs and avoiding stockouts or overstocking.
4. Communication and Collaboration:
IT facilitates seamless communication between suppliers, manufacturers, distributors, and
customers through platforms like cloud computing, emails, and collaborative software. This
improves coordination, reduces lead times, and ensures that all stakeholders are aligned with
supply chain objectives.
5. E-commerce Integration:
IT integrates e-commerce platforms with logistics systems, allowing businesses to handle online
orders efficiently, track shipments, and manage customer service in real-time. This is crucial for
meeting customer expectations in the fast-paced world of e-commerce.
In summary, IT enhances supply chain efficiency by providing real-time data, automating
processes, enabling better decision-making, and improving collaboration, leading to reduced
costs, improved service levels, and greater responsiveness.

Q13. How can strategic lead-time management improve global supply chain performance?

Ans-13
Strategic lead-time management plays a crucial role in improving global supply chain
performance by optimizing the time between order placement and product delivery. Efficient
lead-time management ensures faster response times, cost savings, and enhanced customer
satisfaction, all of which are essential in global supply chains where time and distance introduce
complexities.
1. Reducing Costs:
By strategically managing lead times, companies can reduce inventory levels and associated
holding costs. Shorter lead times allow businesses to adopt Just-In-Time (JIT) inventory
strategies, minimizing the need for large stockpiles and freeing up capital for other uses.
Reduced lead times can also cut down on expedited shipping costs by allowing for better
planning and coordination.
2. Enhancing Flexibility:
Managing lead times effectively increases supply chain agility. Shorter lead times enable
businesses to quickly adapt to fluctuations in demand, supply disruptions, or changes in market
conditions. This flexibility is particularly important in global supply chains where delays in one
region can have a cascading effect on the entire network.
3. Improving Customer Satisfaction:
Faster lead times translate into quicker delivery to customers, which is critical for meeting the
growing expectations of fast, reliable service. Customers value timely deliveries, and shorter
lead times help improve customer loyalty and strengthen competitive advantage, especially in
industries where delivery speed is a differentiator.
4. Streamlining Processes:
By analyzing and optimizing lead times across the supply chain, companies can identify
inefficiencies and bottlenecks in production, shipping, and procurement processes. Addressing
these issues leads to smoother operations, reduced delays, and better overall supply chain
performance.
In conclusion, strategic lead-time management improves global supply chain performance by
reducing costs, enhancing flexibility, boosting customer satisfaction, and streamlining
operations, ultimately driving competitiveness and efficiency.

Q14 Describe the process of vendor management and its impact on supply chain reliability.

Ans-14
Vendor management is the process of selecting, managing, and optimizing relationships with
suppliers to ensure the smooth flow of goods and services within a supply chain. It involves
establishing clear agreements, maintaining communication, evaluating performance, and
fostering collaboration to enhance efficiency, reduce risks, and improve overall supply chain
reliability.
Key Steps in Vendor Management:
1. Supplier Selection: This involves choosing vendors based on factors such as
quality, price, lead times, reliability, and capacity. Careful selection ensures that suppliers align
with the company’s goals and meet performance standards.
2. Contract Negotiation: Establishing clear terms and conditions in contracts
regarding delivery schedules, quality standards, pricing, and penalties for non-compliance is
crucial. Strong contracts help manage expectations and minimize disputes.
3. Ongoing Communication: Continuous communication with vendors is key to
monitoring performance, resolving issues quickly, and aligning objectives. This includes regular
meetings, feedback sessions, and real-time data sharing for better coordination.
4. Performance Evaluation: Regular assessment of supplier performance based on
metrics like on-time delivery, quality, and responsiveness ensures that vendors meet
agreed-upon standards. This helps identify potential risks or areas for improvement.
5. Collaboration and Relationship Building: Building long-term, strategic
relationships with key suppliers fosters trust and mutual benefit. Collaborative efforts can lead to
innovations, cost savings, and improved service delivery.
Q15. Discuss the effects of trade policies and tariffs on GSC.

Ans-15
Trade policies and tariffs play a critical role in shaping Global Supply Chains (GSC) by affecting
costs, sourcing decisions, and overall supply chain efficiency. Here’s how they impact GSC:
1. Increased Costs:
Tariffs raise the cost of imported goods, which can directly increase the price of raw materials,
components, or finished products in the supply chain. This affects the overall cost structure,
potentially leading to higher prices for consumers and reduced profit margins for businesses.
Companies may also face higher logistics and administrative costs due to the complexity of
navigating tariff regulations.
2. Supply Chain Disruptions:
Trade policies that impose tariffs or quotas can disrupt established sourcing strategies.
Companies may be forced to find alternative suppliers or shift production to different countries to
avoid tariffs, leading to delays, increased lead times, and potential quality control issues. This
can reduce supply chain efficiency and increase uncertainty, especially for companies heavily
dependent on global sourcing.
3. Sourcing and Reshoring:
High tariffs on imports may encourage companies to reshore or nearshore production, bringing
manufacturing back to domestic markets or nearby countries. This can reduce reliance on
global suppliers but may also increase labor and production costs. The shift in sourcing
strategies can lead to a more localized supply chain, reducing risks associated with geopolitical
tensions or trade disputes.
4. Competitive Disadvantages:
Trade policies can distort competition by favoring domestic suppliers over foreign ones.
Companies that rely on global sourcing may face a competitive disadvantage if competitors can
source materials from countries with more favorable trade policies or lower tariffs.
In conclusion, trade policies and tariffs influence sourcing strategies, operational costs, and
supply chain risks. Companies must navigate these challenges through strategic planning,
diversification, and adaptation to maintain a resilient global supply chain.

Q16. Discuss the India’s emerging role in the global supply chain landscape.

Ans-16
India’s emerging role in the global supply chain landscape is shaped by its strategic advantages,
such as a large labor force, improving infrastructure, and favorable government policies. As the
world shifts towards more diversified and resilient supply chains, India is increasingly seen as a
key player.
1. Manufacturing Hub:
India’s growing manufacturing sector, bolstered by initiatives like "Make in India", is positioning
the country as an alternative manufacturing base to China. With a cost-effective labor force and
competitive production costs, India is attracting global companies looking to diversify their
supply chains away from over-reliance on China. Key sectors such as electronics, automobiles,
textiles, and pharmaceuticals are seeing significant growth in India.
2. Strategic Location:
India’s geographic location, with access to major shipping lanes in the Indian Ocean, makes it a
vital trade hub for Asia, the Middle East, and Africa. Ports like Mumbai and Chennai are
increasingly becoming critical for global trade, enhancing India's role in logistics and
transportation networks.
3. Infrastructure Development:
India has been investing heavily in infrastructure projects, including highways, ports, and
airports, which are critical for efficient supply chain operations. The Bharatmala Project and the
development of dedicated freight corridors are improving connectivity and reducing logistics
costs.
4. Digital Transformation:
India is rapidly adopting digital technologies in logistics and supply chain management.
Initiatives like GST (Goods and Services Tax) have streamlined tax processes, while
advancements in AI, IoT, and blockchain are improving transparency and efficiency in supply
chains.