International Business 3rd Edition - Charles HillIrwin McGraw-Hill
Student Resources
Chapter 16: Global Manufacturing and Materials Management



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Case Discussion Question

Closing Case Timberland

Website — http://www.timberland.com

Case Discussion Questions
  1. What caused Timberland's logistical problems in the 1990s? What do you think were the competitive and financial consequences of these problems?

  2. What was the key to solving Timberland's logistical problems? Why? What are the consequences of this solution likely to be for Timberland's competitive position and financial performance?

  3. Timberland makes almost no products in the United States. Instead, it manufactured some products in the Dominican Republic and Puerto Rico, while outsourcing the remaining products from third-party manufacturers. Explain the probable thinking behind this strategy. Why does the company not outsource all its production? Why does the company make shoes in the Dominican Republic and Puerto Rico, but not the United States?

Internet Exploration Question

This case focuses on the incredible growth that Timberland Corporation has experienced since the 1970s, and how the growth has impacted Timberland's supply chain management and logistics systems. In the early 1970s, Timberland was a small New Hampshire-based company that manufactured rugged, high-quality shoes. As a result of the quality of its products, Timberland eventually attracted the attention of an overseas buyer and started selling in a foreign market. As the company expanded to additional overseas markets, its once simply logistics and supply chain management system became inadequate. In fact, the company found that its logistics system was literally breaking down under the strains imposed by its rapid overseas growth. In an attempt to address this problem, Timberland partnered with ACS, a freight forwarder, and The Rockport Group, a software house, to significantly improved its logistics and global supply chain capabilities. The company's efforts have been successful. Today, Timberland is able to deliver products to customers, in all of its foreign markets, exactly when they need them.

A number of colleges and universities maintain excellent centers that conduct research on global logistics and supply chain management issues. An excellent example is the Logistics Institute at Georgia Tech University. Visit the Institute's website at {http://tli.isye.gatech.edu/}. After spending some time navigating the website, answer the following questions. First, what issues appear to be "hot" in terms of research and practitioner interest in the area of global supply chain and logistics management? Second, do you believe that this website could be helpful to a logistics or supply chain manager for a global firm? Explain your answer.




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