2. Global Supply Chain Management Analysis .pptx

SUPPLY CHAIN MANAGEMENT

1. LOGISTICS AND SUPPLY CHAIN MANAGEMENT BAE 5 & BIE 5 Mr I. Simeon

2. Global Supply Chain Management Outline Definition Of Global Supply Chain, Supply Chain Mgt And Global Logistics Management Levels Global Supply Chain Management Characteristics Of International Logistics Global Supply Chains Drivers Of Global Supply Chain Management Challenges In International Logistics And Supply Chain Management Challenges In International Logistics And Supply Chain Management Role Of Government In International Trade

3. A Global Supply Chain Definition A global supply chain is a network of organisations across international boarders that are involved, through upstream and down-stream linkages, in different processes and activities that produce value in the form of products and services in the hands of the ultimate customer or consumer in another country A global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas

4. Global Supply Chain Management Definition Global supply-chain management (GSCM) is defined as the distribution of goods and services throughout a trans-national companies' global network to maximize profit and minimize waste The system is composed of international supply base, value added services provided by international suppliers; organisational coordination; world wide information systems; electronic commerce and capabilities of purchasing personnel

5. Levels Global Supply Chain Management International distribution systems . In this type of system, manufacturing still occurs domestically, but distribution and typically some marketing take place overseas International suppliers. In this system, raw materials and components are furnished by foreign suppliers, but final assembly is performed domestically. In some cases the final product is then shipped to foreign markets.

6. Levels Global Supply Chain Management Offshore manufacturing. In this type of system, the product is typically sourced and manufactured in a single foreign location and then shipped back to domestic warehouses for sale and distribution. Fully integrated global supply chain. Here products are supplied, manufactured, and distributed from various facilities located throughout the world. In this type, it may appear that chains are designed without regard to national boundaries.

7. International Logistics Management International Logistics Management is the strategic Management of movement, storage and information relating to materials, parts, and finished goods in supply chains, through the stages of procurement, work-in- progress and final distribution across international borders. This may be the case when a resource either is not available locally or costs less when purchased from international markets.

8. Characteristics Of International Logistics Global Supply Chains Supply Chain participants are spread across country boundaries Distances between participants is usually long Goods are usually moved in multimodal means They address local supply complexities/deficiencies Use of improved electronic communication ie . softwares and platforms that use the internet Cross a national boundary Regulations Documentation They are volatile to political changes

9. Drivers Of Global Supply Chain Management Global market forces Competition – Local or foreign To explore business opportunities in foreign countries Technological forces Advanced research and development on products leading to unbeatable quality Global proliferation of information through internet

10. Drivers Of Global Supply Chain Management Global cost forces Issues like low skilled labour cost and cheap raw materials leading to low/cheap price for final product Political and economic forces Exchange rate fluctuation Trade protection mechanisms ie . Tariffs and quotas

11. Challenges In International Logistics And Supply Chain Management Lead/Delivery Time Source Location and Evaluation Expediting Political and Labour Problems Hidden Costs Currency Fluctuations Payment Methods Quality Rejects

12. Challenges In International Logistics And Supply Chain Management Tariffs and Duties Paperwork Costs Legal Problems Transportation and Integrated Logistics Language Cultural and Social Customs Ethics

13. Role Of Government In International Trade Control of tariffs on imported items i.e. import duty, VAT. Control of amount foreign exchange spent imported items. Negotiating for international trade agreements like SADC, COMESA and also negotiate for lifting of trade embargos. Encouraging exports to increase foreign exchange reserves. Imposing import bans on specifics items i.e. Frozy , Meat products from South Africa . Controlling of quality of imported items i.e. rejection of sub standard items or high duty on old models.

14. Thank You.