Structure of the global supply chain ppt

Structure of the global supply chain

1. CHAPTER 3: THE STRUCTURE OF THE GLOBAL SUPPLY CHAIN An efficient supply chain promotes prosperity by ensuring smooth transmission of the energy and raw materials that underpin our civilization. The market-based mechanism aligns supply and demand highly effectively.

2. GLOBAL SUPPLY CHAIN ]] Global supply chains are networks that can span across multiple continents and countries for the purpose of sourcing and supplying goods and services. Global supply chains involve the flow of information, processes and resources across the globe.

3. PHYSICAL SUPPLY CHAIN This category is commonly referred to as the exploration and production sector. The beating heart of the commodity trading business. Global trading firms manage transportation and complex logistics to SOURCE , STORE/BLEND , and DELIVER commodities for their customers around the globe. This category refers to the transportation and storage of the products as well as any wholesale marketing efforts. This category is the final stage of the process and refers to the refining, processing and purifying of products.

4. TRAFIGURA Trafigura Group Pte. Ltd – a Singapore based multinational commodity trading company founded in 1993 that trades in base metals and energy. Today, their activities put them at the heart of the global economy. They forge robust connections through their global network, efficient logistics and unparalleled market understanding. Their end-to-end services connect producers, processors and consumers worldwide. They invest hundreds of millions of dollars in infrastructure. They’re among the market leaders in energy, metals and minerals. With 88 offices in 48 countries, they’ve global reach and scale. Throughout their 28-year history, they’ve prospered by questioning the status quo. In the early years, they were one of a few trading firms challenging the traditional dominance of the big institutions. They developed new markets and helped to redefine the way commodities were traded.

5. Trafigura’s traded volumes give a sense of the scale of the business. 1,222m 211m 254m 354m CRUDE OIL GASOLINE FUEL OIL MIDDLE DISTILLATES 145m 99m 126m 208m NAPHTHA LPG NATURAL GAS BIODIESEL LNG CONDENSATES 4m 14m Oil and Petroleum Products

6. METAL CONCENTRATES REFINED METALS IRON ORE 13.3 mmt Trafigura’s traded volumes give a sense of the scale of the business. COAL 9.5 mmt 23.1 mmt 59.6 mmt Metals and Minerals

7. PRIMARY AND SECONDARY COMMODITIES SUPPLY CHAIN CONNECTIVITY Most direct between primary and secondary commodity markets. PRIMARY COMMODITIES An unprocessed commodity, extracted directly from natural resources. Primary commodities are non-standard, which means their quality depends on when and where they originated. An example of a primary commodity is Crude Oil. SECONDARY COMMODITIES These are the products produced from primary commodities to meet market requirements. For example, the process of refining crude oil generates a range of products such as gasoline, propane and jet fuel.

8. SUPPLY CHAIN FOR CRUDE OIL & PETROLEUM PRODUCTS Trafigura is one of the world’s largest independent traders of oil and petroleum products and one of very few with genuine global presence and comprehensive product coverage.

9. SUPPLY CHAIN FOR COPPER As one of the world’s largest metals and minerals traders, Trafigura is building global connectivity between miners, smelters and refined metal fabricators.

10. REFINING CRUDE OIL INTO PRODUCTS

11. COPPER FROM MINE TO MARKET

12. LINKS BETWEEN MARKETS Economic fundamentals link markets and affect key trade routes. STORAGE PROMOTES MARKET STABILITY Storage acts as a market shock absorber; rising when there is excess supply and falling when there is excess demand. CONNECTED MARKETS The global supply chain comprises numerous interconnected supply chains. TRADERS AND VOTALITY Traders thrive in volatile conditions, but their actions don’t make markets more volatile.