Transcript Global Supply Chain Management

Logistics and Supply Chain
Management
Introduction to Global Supply Chain
Management
 What is a Supply Chain ?
 A system or network consisting of
organizations and their business processes.
 What is a Global Supply Chain ?
 A supply chain developed in a global scale
with eight key business processes that are
both cross-functional and cross-firm in
nature.
Business Processes Of Supply Chain
 SC performs business processes as follows:
 The Customer Relationship Management
Process
 The Supplier Relationship Management
Process
 The Customer Service Management Process
 The Demand Management Process
 The Order Fulfillment Process
 The Manufacturing Flow Management
Process
 The Product Development and
Commercialization Process
 The Returns Management Process
Why do we need a SC system?
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Providing greater value to customers
Faster Order Processing and turn around times
Providing a greater product variety
To provide competitive advantage
What is Global Supply Chain
Management?
 Built upon eight key business processes that
are both cross-functional and cross-firm in
nature
 Each process is managed by a cross-functional
team, including representatives from logistics,
production, purchasing, finance, marketing and
research and development
Advantages of Global Supply Chain
Management Systems
 Reduction Of Inventory Costs
 Link-up different organization with a common
language
 Reduce the waste of valuable resources
 Increase the transaction speed by exchanging
data in real-time
 Increase sales by implementing customer
requirements more efficiently
Global Supply Chain Operations
Reference Model
 Developed by the Supply Chain Council as
cross industry process reference model for
Supply Chain Management.
 Includes 5 major Supply Chain Processes:
 Plan
 Source
 Make
 Deliver
 Return
Some problems with Global Supply
Chains
 Parts Shortages.
 Underutilized capacities of manufacturing
plants.
 Excessive finished goods.
 Increased transportation distances
 Cultural and Social difference among the
partners
Case Study : Carrefour’s Global
Supply Chain System
“To embrace the challenge of building a worldwide
company, not only geographically international,
but truly global in vision, leveraging each
country's experience as we optimize our
resources and technology."
- Carrefour's Global Vision, Annual Report
1997
Carrefour Strategy
In 1997, the second largest retailer, France based
Carrefour Group, planned a $170 million
project to standardize its business systems and
processes across the world to improve its
global supply chain.
 Building shared service centers to manage
purchasing and logistics issue to improve
the efficiency of supply chain
 Relied on third-party logistics providers to
manage its global operations
Carrefour Supply Chain
Implementation
Carrefour Supply Chain used the Electronic Data
Interchange (EDI) for procurement and
basically had three main entities:
1. The Distribution Centers: received , stocked
and distributed goods received from
suppliers.
2. Logistics
3. Inventory Management
How did technology help Carrefour ?
In 2003, Carrefour tied up with See Beyond to
install integrated composite application
network software:
1) to adapt itself to the local condition by
customizing its operations, the merchandize
mix and even store formats
2) to integrate its stores, distribution centers
and local supply chain partners
The Outcome
 Carrefour purchased goods from local
manufacturers in all the global markets
 90% of the goods at Carrefour stores in
developing markets were produced locally.
 Local purchases enabled the company to keep
its cost low as well as shorten its supply chain
Discuss the following questions:
 What problems do Carrefour address? How
does global supply chain initiative help solve
these problems?
 What issues and challenges do global supply
chain strategy present? What can be done
to address these issues?
 What are the business as well as the
technology issues that should be addressed
when Carrefour implemented global supply
chain?