Globalization global purchasing risks

AMC thus offers a way to make development of vaccines profitable, but is a pull mechanism since the sponsor pays only if the product meets the technical requirements and sells lots of units. Thus, the incentives are made similar to those of drugs for global diseases, in which innovators receive healthy profits only if their drug is approved and is purchased at a high price by many consumers. In addition, the sponsor has to make disbursements only if vaccine development leads to a product that consumers value it bears no unwanted risks. 

A deposit scheme for the return of batteries has a number of drawbacks. Technically it would be unrealistic to expect manufacturers to mark products for a small market such as Belgium, when they are produced on a global scale. The scheme would be complex to administer, particularly with the risk of fraud resulting from batteries being returned which were purchased outside of Belgium. 

Atkinson, W. 2003. Supply chain risk management Riding out global challengers. Purchasing. 132(14) 43-46. 

A winning procurement strategy for products with high demand variability is to buy globally from fhe lowesf cosf counfry and handle demand variability through "spot purchases" from local sources. This is similar to FlP s portfolio strategy to handle supply risk we discussed in Section 7.7.2. 

Care labels that are easily understood by consumers increase their confidence in caring for the apparel and reduce their perceptions of risk concerning the purchase of the item. The care instmctions can be passed to the consumers with text only, symbols only and a combination of text and symbol (Yan et al., 2008). The manirfacturers of clothing and other textiles prefer to use symbols on the care label, as the care symbols are globally recognizable and do not need to be translated into other languages. A majority of consumers prefer care labels that contain text and symbols, as these skills are taught and reinforced from an early age. 

Zsidisin GA 2003 Managerial perceptions of supply risk. The Journal of Supply Chain Management. A Global Review of Purchasing and Supply 39(1) 14-25. 

Zsidisin G (2003) Managerial perceptions of supply risk. Journal of Snpply Chain Management A Global Review of Purchasing and Supply, Vol 39, pp 14-25 Zsidisin G, Ellram L, Carter J and Cavinato J (2004) An analysis of supply risk assessment techniques, International Journal of Physical Distribution Logistics Management, 2004, Vol 34, No 5, pp 397-413... 

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