The Physical Supply Chain

Please choose the most appropriate answer for each sentence.
  • 1

    The reduction of uncertainty in the physical supply chain requires cooperation between trading partners; this uncertainty is reduced ..... but requires adequate investment from both of the partners.

  • 2

    During the initial development of integrated supply chains, the more powerful of the partners ..... their requirements.

  • 3

    With, for example, ..... system, timely delivery of components lowered the working capital needed by a powerful customer, while the supplier had to investment heavily to adapt their system.

  • 4

    The system is uncertain for the supplier because the payment receipt date is unknown, yet powerful customers are ..... to invest in providing a more certain system because it is the supplier that receives the benefit.

  • 5

    Instead of cooperating in the removal of costs from their supply chain, the customer's finance functions may take ..... approach: payments may be delayed in order to match cash flows or operational processes.

  • 6

    A smaller supplier may also ..... higher charges for foreign exchange transactions and cash management services.

  • 7

    With regard to the financial supply chain, it has been proving problematic to implement a sure system for invoice input and ..... of payment orders.

  • 8

    However, in the long run, the process of ..... improvements in the supply chain demands close cooperation.

  • 9

    Instead of apportioning savings to each partner for every investment, the focus is shifted to a more general form of ......

  • 10

    The thrust of the trading relationship can then shift from competition between partners and focus instead upon cooperation within the supply chain and ..... competition between chains.

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