| Preface |
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xv | |
| About the Author |
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xvii | |
| Chapter 1 Overview of Risk and Spend Issues in the Global Supply Chain |
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1 | (50) |
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Overview of Supply Chain Risk |
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1 | (2) |
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3 | (3) |
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6 | (2) |
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8 | (4) |
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Relationship, Relationship, Relationship |
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8 | (1) |
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9 | (1) |
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9 | (1) |
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Hiring Legal Support: Some Helpful Hints |
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10 | (1) |
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International Contracts: Helpful Hints and Best Practices |
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11 | (1) |
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12 | (2) |
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Physical Challenges of Global Trade |
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13 | (1) |
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Customer, Supplier, and Vendor |
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14 | (1) |
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15 | (4) |
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You Lose Control over Distribution and Sales Price and Margins |
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15 | (1) |
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You Cannot Control How They Represent You in the Countries They Are Distributing To or In |
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15 | (1) |
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Repairs, Service Agreements, and Warranty Handling May Not Be Adequate |
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16 | (2) |
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Potential Issues with Intellectual Property Rights (IPR) |
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18 | (1) |
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Reexport Is a Potential Exposure |
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18 | (1) |
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Resell into the Gray Market Back in the United States or Abroad |
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19 | (1) |
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19 | (7) |
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Leveraging Logistics Options |
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22 | (2) |
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Reduce Cost with Bonded Warehouses and Foreign Trade Zones |
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22 | (1) |
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Freight Forwarders and Custom House Brokers |
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23 | (1) |
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Managing Transportation Service Providers |
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24 | (2) |
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26 | (8) |
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Trade Compliance Facilities Reviews |
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27 | (7) |
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34 | (16) |
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Financial Risks in Foreign Exchange |
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34 | (3) |
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How to Export in Foreign Currencies |
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34 | (1) |
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Best Practices to Reduce Risk |
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35 | (1) |
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Characteristics of a Foreign Currency-Denominated Export Sale |
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35 | (1) |
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FX Risk Management Options |
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35 | (2) |
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Methods of Payment in International Trade |
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37 | (2) |
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38 | (1) |
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38 | (1) |
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38 | (1) |
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39 | (1) |
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39 | (7) |
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39 | (1) |
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Currency Inconvertibility |
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40 | (1) |
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41 | (1) |
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Incorrect Utilization of Currency and Exchange Rates |
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41 | (1) |
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42 | (3) |
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Characteristics of Export Credit Insurance |
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45 | (1) |
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46 | (6) |
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46 | (4) |
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50 | (1) |
| Chapter 2 Special Need Supply Chains |
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51 | (22) |
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Industries with Special Needs |
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51 | (1) |
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Defense and Export Controlled Products |
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52 | (3) |
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Failure to Manage the Regulatory Process Proactively |
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52 | (1) |
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Failure to Train All Personnel in the Global Supply Chain from Sales to Purchasing, Operations and Logistics, Supply Chain, Legal, and Finance |
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53 | (1) |
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Failure to Create a Compliant and Secure Logistics Supply Chain |
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54 | (1) |
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55 | (2) |
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55 | (2) |
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57 | (1) |
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Communications and Broadcast |
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57 | (5) |
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Carnets Can Reduce Risk and Cost |
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59 | (1) |
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60 | (2) |
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62 | (1) |
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63 | (3) |
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64 | (2) |
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66 | (2) |
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68 | (1) |
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69 | (4) |
| Chapter 3 Developing a Risk Management Strategy |
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73 | (10) |
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Creating the Necessary Leadership for Risk Management |
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73 | (2) |
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75 | (1) |
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Building Internal Teams to Tackle Risk Management as a Corporate Responsibility for Everyone |
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76 | (1) |
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Assessment and Benchmarking |
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77 | (3) |
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80 | (1) |
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Strategies in Risk Management |
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81 | (1) |
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Tactics in Risk Management |
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81 | (2) |
| Chapter 4 Summary of Insurance Purchasing for Global Supply Chains |
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83 | (24) |
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Outline of the Risks in Managing Global Supply Chains |
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83 | (1) |
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83 | (2) |
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85 | (8) |
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87 | (1) |
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87 | (1) |
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87 | (1) |
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87 | (1) |
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88 | (1) |
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88 | (1) |
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88 | (1) |
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89 | (1) |
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89 | (1) |
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89 | (1) |
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90 | (1) |
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Consolidation and Deconsolidation |
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90 | (1) |
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91 | (1) |
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91 | (1) |
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91 | (1) |
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91 | (1) |
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92 | (1) |
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Business Interruption or Consequential Damages |
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92 | (1) |
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92 | (1) |
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92 | (1) |
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92 | (1) |
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93 | (1) |
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94 | (1) |
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95 | (6) |
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Key Risk Management Initiatives in Global Trade |
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96 | (2) |
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Players in Global Supply Chain Risk Management, Brokerage, and Underwriting |
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96 | (2) |
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98 | (3) |
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101 | (6) |
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101 | (1) |
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102 | (1) |
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103 | (1) |
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103 | (1) |
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103 | (1) |
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Global Supply Chain Disaster Management |
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103 | (4) |
| Chapter 5 Mastering Cargo Loss Control |
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107 | (4) |
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How Do Loss and Damage Occur in International Shipping? |
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107 | (2) |
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Best Practices: A Company's Strategy to Combat Loss and Damage in Global Trade |
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109 | (2) |
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Other Areas That Could Have an Impact on Cargo Outturns |
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110 | (1) |
| Chapter 6 Developing a Cost Reduction Business Model: Creative Leveraging and Aggressive Management Strategies |
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111 | (10) |
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111 | (1) |
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112 | (1) |
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113 | (3) |
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114 | (1) |
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114 | (2) |
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Utilization of Consultants |
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116 | (1) |
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Areas in Which Spend and Risk Can Be Dealt with Aggressively |
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117 | (1) |
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Dealing with Change Management Issues |
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118 | (1) |
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Moving Theory into Results |
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119 | (2) |
| Chapter 7 World Class, Best Practices, and SOX: While Reducing Risk and Spend |
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121 | (12) |
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121 | (1) |
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Typical Global Supply Chain Scenario |
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122 | (3) |
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Move Freight in a Timely Manner |
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122 | (1) |
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122 | (1) |
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Move Freight Cost Effectively |
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123 | (1) |
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Move Freight Securely and Compliantly |
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123 | (1) |
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Senior Management Leadership |
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124 | (1) |
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Experienced Management with Global Trade Experience |
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125 | (1) |
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Utilization of Technology |
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125 | (1) |
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125 | (1) |
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Alignment with Quality Service Providers, Advisors, Channel Partners, and Professional Service Organizations |
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126 | (1) |
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Partner Mentality with Channel Partners |
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127 | (1) |
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Assessment and Benchmarking |
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127 | (1) |
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Industry and Trade Organization Participation |
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128 | (1) |
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International Travel and Relationship Building |
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128 | (1) |
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Connectivity in the Organization with a Global Supply Chain |
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129 | (1) |
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Investing in Skill Set Training |
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129 | (1) |
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Bringing International Culture into the Organization |
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130 | (1) |
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Leveraging Supply Chain Options-FTZ |
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131 | (1) |
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Keeping International Travel and Entertainment Costs in Line |
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131 | (1) |
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132 | (1) |
| Chapter 8 Managing RFPs and RFQs: Maximizing Results |
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133 | (20) |
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133 | (1) |
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Step 1 Define Stakeholders |
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134 | (1) |
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135 | (1) |
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135 | (1) |
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Step 4 Define Deliverables (Parameters May Be Required) |
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136 | (1) |
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Step 5 Assign a Committee Approach (Buy-In) |
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137 | (1) |
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Step 6 Create Basic RFP Outline |
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138 | (3) |
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Step 7 Identify Potential Partners Who Will Be Invited In to Bid on the RFP |
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141 | (1) |
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Step 8 Conduct Preliminary Meetings with RFP Participants |
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142 | (1) |
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Step 9 Establish Metrics or Measurement System for the RFP |
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143 | (3) |
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Step 10 Send Out Basic RFP Outline-No Pricing Involved |
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146 | (1) |
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Step 11 Set Dates for Second Meetings with RFP Participants |
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146 | (1) |
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Step 12 Move Participants List to a Manageable Amount |
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147 | (1) |
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Step 13 Bring Price into the Equation |
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147 | (1) |
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Step 14 Move Participants List to One to Three Options |
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148 | (1) |
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Step 15 Set Full-Blown "Dog and Pony" Show |
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149 | (1) |
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Step 16 Make Selection, Implementation Strategy, and Follow-Up Evaluation |
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150 | (3) |
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150 | (2) |
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152 | (16) |
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152 | (1) |
| Chapter 9 Spend Issues: Global Operations, Trade Compliance, and Regulatory Management |
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153 | (14) |
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153 | (2) |
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Senior Management Support |
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155 | (1) |
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Point Person and Committee |
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156 | (1) |
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Assessment and Benchmarking |
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157 | (1) |
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158 | (1) |
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159 | (2) |
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161 | (3) |
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164 | (3) |
| Chapter 10 Import and Export Trade Compliance: Risk and Spend Concerns |
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167 | (64) |
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Driving Risk and Spend Out of the Global Supply Chain-Import Perspective |
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167 | (1) |
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Understanding Incoterms® Rules |
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168 | (16) |
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171 | (2) |
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Managing the Import Process r |
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173 | (1) |
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Purchase Order Management |
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174 | (2) |
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176 | (1) |
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177 | (1) |
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178 | (6) |
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General Questions for All Transactions |
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179 | (1) |
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Questions for Merchandise Description and Tariff Classification |
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180 | (4) |
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184 | (11) |
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Managing the Customs Broker Relationship |
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185 | (1) |
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Harmonized Tariff Classification |
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186 | (2) |
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188 | (1) |
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189 | (2) |
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191 | (2) |
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193 | (1) |
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194 | (1) |
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195 | (1) |
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Driving Risk and Spend Out of the Global Supply Chain-Export Perspective |
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195 | (30) |
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196 | (2) |
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198 | (2) |
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200 | (2) |
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Export Licensing and License Exceptions |
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202 | (1) |
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203 | (4) |
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Best Practices against Diversion |
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204 | (3) |
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Foreign Trade Regulations |
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207 | (4) |
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Restrictive Trade Practices |
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211 | (1) |
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Examples of Boycott Requests |
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211 | (1) |
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212 | (1) |
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Managing Freight Forwarders |
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212 | (1) |
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International Traffic in Arms (ITAR) Regulations |
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213 | (1) |
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213 | (1) |
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214 | (11) |
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U.S.-Australia Free Trade Agreement |
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219 | (1) |
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U.S.-Bahrain Free Trade Agreement |
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219 | (1) |
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CAFTA-DR-U.S.-Peru Free Trade Agreement |
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220 | (1) |
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U.S.-Chile Free Trade Agreement |
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220 | (1) |
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U.S.-Colombia Trade Promotion Agreement |
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221 | (1) |
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U.S.-Israel Free Trade Agreement |
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221 | (1) |
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U.S.-Jordan Free Trade Agreement |
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221 | (1) |
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U.S.-Korea Free Trade Agreement (KORUS) |
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222 | (1) |
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U.S.-Morocco Free Trade Agreement |
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222 | (1) |
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U.S.-Oman Free Trade Agreement |
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223 | (1) |
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NAFTA (North American Free Trade Agreement) |
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223 | (1) |
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U.S.-Panama Trade Promotion Agreement |
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224 | (1) |
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U.S.-Peru Trade Promotion Agreement |
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224 | (1) |
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U.S.-Singapore Free Trade Agreement |
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225 | (1) |
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225 | (4) |
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226 | (3) |
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Effective Compliance Management |
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229 | (2) |
| Glossary |
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231 | (66) |
| Resources |
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297 | (10) |
| Appendix |
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307 | (28) |
| Index |
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335 | |