Global Supply Chain Management Process.ppt

Global Supply Chain Management

1. 11-1
Global Supply ChainsGlobal Supply Chains
Increasing more complex
Language
Culture
Currency fluctuations
Political
Transportation costs
Local capabilities
Finance and economics
Environmental

2. 11-2
Elements of Supply Chain Elements of Supply Chain
ManagementManagement
Deciding how to best move and store materialsLogistics
Determining location of facilitiesLocation
Monitoring supplier quality, delivery, and relationsSuppliers
Evaluating suppliers and supporting operationsPurchasing
Meeting demand while managing inventory costsInventory
Controlling quality, scheduling workProcessing
Incorporating customer wants, mfg., and timeDesign
Predicting quantity and timing of demandForecasting
Determining what customers wantCustomers
Typical IssuesElement
Table 11.1

3. 11-3
Strategic or OperationalStrategic or Operational
Two types of decisions in supply chain
management
Strategic – design and policy
Operational – day-today activities
Major decisions areas
Location
Production
Inventory
Distribution

4. 11-4
Logistics
Refers to the movement of materials and
information within a facility and to incoming
and outgoing shipments of goods and
materials in a supply chain
LogisticsLogistics

5. 11-5
LogisticsLogistics
•Movement within the facility
•Incoming and outgoing shipments
•Bar coding
•EDI
•Distribution
•JIT Deliveries
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6. 11-6
Materials MovementMaterials Movement
Figure 11.4
R
E
C
E
I
V
I
N
G
Storage
Work
center
Work center
Work center
Storage
Work
center
Storage
Shipping

7. 11-7
Distribution requirements planning
(DRP) is a system for inventory
management and distribution planning
Extends the concepts of MRPII
Distribution Requirements Distribution Requirements
PlanningPlanning

8. 11-8
Management uses DRP to plan and
coordinate:
Transportation
Warehousing
Workers
Equipment
Financial flows
Uses of DRPUses of DRP

9. 11-9
E-Business: the use of electronic
technology to facilitate business
transactions
Applications include
Internet buying and selling
E-mail
Order and shipment tracking
Electronic data interchange
E-BusinessE-Business

10. 11-10
Companies can:
Have a global presence
Improve competitiveness and quality
Analyze customer interests
Collect detailed information
Shorten supply chain response times
Realize substantial cost savings
Create virtual companies
Level the playing field for small companies
Advantages E-BusinessAdvantages E-Business

11. 11-11
Customer expectations
Order quickly -> fast delivery
Order fulfillment
Order rate often exceeds ability to fulfill it
Inventory holding
Outsourcing loss of control
Internal holding costs
Disadvantages of E-BusinessDisadvantages of E-Business

12. 11-12
Reverse LogisticsReverse Logistics
Reverse logistics – the backward flow of
goods returned to the supply chain
Processing returned goods
Sorting, examining/testing, restocking, repairing
Reconditioning, recycling, disposing
Gatekeeping – screening goods to prevent
incorrect acceptance of goods
Avoidance – finding ways to minimize the
number of items that are returned

13. 11-13
Effective Supply ChainEffective Supply Chain
Requires linking the market, distribution
channels processes, and suppliers
Supply chain should enable members to:
Share forecasts
Determine the status of orders in real time
Access inventory data of partners