Scribd Logo
Upload

Welcome to Scribd!

  • 128 views

    Global Supply Chain

    Uploaded by

    Rangith Ramalingam
    This document discusses global supply chain networks and their integration. It describes how supply chains have become globally distributed through factors like declining transport costs, outsourcing, and new technologies. Global supply chains pass through many countries and institutions, and their performance depends on soft infrastructure policies around trade, customs, and business environment. When risks occur in interconnected supply chains, they can transmit and amplify disruptions globally, as seen in the 2008 financial crisis and 2011 Japanese earthquake. The document advocates studying supply chains holistically within their broader ecosystem of influences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Global Supply Chain

    Uploaded by

    Rangith Ramalingam
    128 views21 pages
    This document discusses global supply chain networks and their integration. It describes how supply chains have become globally distributed through factors like declining transport costs, outsourcing, and new technologies. Global supply chains pass through many countries and institutions, and their performance depends on soft infrastructure policies around trade, customs, and business environment. When risks occur in interconnected supply chains, they can transmit and amplify disruptions globally, as seen in the 2008 financial crisis and 2011 Japanese earthquake. The document advocates studying supply chains holistically within their broader ecosystem of influences.

    Original Description:

    global supply chain-lec2

    Original Title

    global supply chain

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses global supply chain networks and their integration. It describes how supply chains have become globally distributed through factors like declining transport costs, outsourcing, and new technologies. Global supply chains pass through many countries and institutions, and their performance depends on soft infrastructure policies around trade, customs, and business environment. When risks occur in interconnected supply chains, they can transmit and amplify disruptions globally, as seen in the 2008 financial crisis and 2011 Japanese earthquake. The document advocates studying supply chains holistically within their broader ecosystem of influences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    128 views21 pages

    Global Supply Chain

    Uploaded by

    Rangith Ramalingam
    This document discusses global supply chain networks and their integration. It describes how supply chains have become globally distributed through factors like declining transport costs, outsourcing, and new technologies. Global supply chains pass through many countries and institutions, and their performance depends on soft infrastructure policies around trade, customs, and business environment. When risks occur in interconnected supply chains, they can transmit and amplify disruptions globally, as seen in the 2008 financial crisis and 2011 Japanese earthquake. The document advocates studying supply chains holistically within their broader ecosystem of influences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21
    At a glance
    Powered by AI
    The key takeaways are that global supply chains have become highly integrated networks connecting suppliers, manufacturers, logistics providers and customers globally. Factors like outsourcing, connectivity and just-in-time operations have increased efficiency but also introduced risks that can amplify during disruptions.

    Integrated supply chain networks connect suppliers, distributors, manufacturers, service providers and customers through information networks, logistics networks, financial networks and demand networks. The components work together globally to source materials, manufacture, distribute and sell products.

    The production of Barbie dolls has become disintegrated with materials sourced from different low cost countries and final assembly in China. This allows maximizing costs savings but introduces complexity and risks in the supply chain.

    Global Supply Chain Management

    Learn the Future by


    living in the Present

    Introduction to Global Supply Chain Networks :Part2


    N. Viswanadham
    Indian Institute of Science
    Bangalore -560 012
    [email protected]

    Global Supply Chain Management

    Integrated Supply Chain


    Networks

    N. Viswanadham

    Global Supply Chain Management

    Integrated Supply Chain Networks


    Information Network
    Enterprise System or
    Web-site

    Supply Network

    Demand Network
    Manufacturer

    Supplier

    Distributor

    Logistics Network

    Logistics Hub

    Supplier

    Service Network

    Retailer

    Service
    Provider

    Financial Network
    Banks

    N.Viswanadham

    Global Supply Chain Management

    Disintegration of
    Production : Barbie doll
    l
    l
    l
    l
    l

    The plastic and hair sourced from Taiwan & Japan.


    The molds & paints for decorating the dolls are from US.
    Assembly in low-cost locations Indonesia, Malaysia & China.
    China supplies only cotton cloth for dresses and the labor.
    The export value of the dolls at Hong Kong is $2 . 35 cents of
    Chinese labor, 65 cents of materials & rest for transport,
    overheads & profits.
    The doll sells for $10 in the US: 1$ for Mattel & the rest
    covers transport, marketing, wholesale and retailing in U.S.

    Global Supply Chain Management

    Logistics Providers

    N. Viswanadham

    Global Supply Chain Management

    The Six Dominant Players


    l Suppliers
    l Logistics

    Players: B2B and B2C


    l Contract manufacturers
    l Original Equipment Manufacturers
    l Distributors
    l Retailers
    They are independent companies globally
    distributed & highly connected

    Global Supply Chain Management

    Life-cycle-based Logistics
    l

    Logistics depends on the product life cycle


    Movement of Semi finished items from one

    machine shop to another (Manufacturing logistics)


    Movement of Finished products from end of the
    production line to the consumer (Outbound
    logistics)
    Movement of Raw materials from source of supply
    to the beginning of the production line. (Inbound
    logistics)
    Movement of Spare parts from manufacturers to
    the customers via dealers (Spare part logistics)
    Movement of Used goods from consumer to the
    manufacturers (Reverse logistics)

    N.Viswanadham

    Global Supply Chain Management

    1PL, 2 PL and 3 PLs


    Most manufacturers handle all logistics
    functions including trucking and warehousing
    (1PL).
    l 2PLs are basic transportation and storage
    providers such as truckers, warehouses and
    container lines and have high levels of asset
    intensity.
    l

    Airports and Seaports are categorized as 2PLs

    3PLs provide end to end total value added


    logistic solutions
    Own some assets such as distribution centers and

    rent other assets from 2PLs.


    Freight management is the key process for 3PLs
    191206
    N.Viswanadham

    Global Supply Chain Management

    Lead Logistics Providers (LLP)


    The LLPs follow the leveraged growth model
    that mobilizes the needed assets and
    capabilities existing within other companies to
    deliver value to its customers
    l Assumes responsibility for the logistics and the
    management of collaborative relations in the
    network, and aligns the participants objectives
    with those of the complete chain.
    l Orchestrators must be competent at recruiting
    the right providers and developing strong ties
    with them
    l

    Global Supply Chain Management

    Global Trade Issues

    N.Viswanadham

    10

    Global Supply Chain Management

    Global Supply Chain Networks


    l

    Global Manufacturing Supply Chains


    Networks have proliferated as a result of
    convergence of several technologies and
    co-evolution of several global players
    Decline in transport costs
    Standardized modular product assemblies &

    Outsourcing
    Emergence of the Internet
    Emergence of the Contract Manufacturers &
    Efficient Logistics service providers
    Greater integration of economies by reducing the
    trade barriers

    Global Supply Chain Management

    Institutions and Supply Chains


    l

    Global supply chains pass through several


    countries through the ports and airports and are to
    be managed effectively to minimize the lead time
    and inventory.
    Soft infrastructure such as trade facilitation, free
    trade agreements, customs duties, business
    friendliness and economic diplomacy of the
    Governments, social factors such as labour unions
    and industry associations are important for superior
    performance.
    Favourable institutional environment reduces
    transaction costs and positively influence the trade.

    Global Supply Chain Management

    World seaborne trade in cargo ton-miles,


    19992012 (Billions of ton-miles)

    N. Viswanadham

    REVIEW OF MARITIME TRANSPORT2012

    Global Supply Chain Management

    Number of FTAs Worldwide by year

    There were only 16 FTAs at the end of 1989.


    As of August 2009, 171 FTAs were in effect.
    N.Viswanadham

    14

    Global Supply Chain Management

    Connectedness, Risk and Trade


    Collapse

    07042008
    N.Viswanadham

    Global Supply Chain Management

    High Performance Supply Chains: Efforts of


    Stake holders for last Two Decades
    l
    l
    l
    l
    l
    l

    Lean , JIT, TQM, Outsourcing, Collaboration, Visibility,


    Supply hubs, Cross docking, etc
    Web, Software , Consultants & Implementation Experts
    High performance: Low inventory, Just in time, Low
    cost, Shared services
    Global sourcing from low cost countries
    Highly connected (logistically, informationally and
    financially)
    Final Goal : Global Supply-Demand Matching

    N.Viswanadham

    Global Supply Chain Management

    Tension between Weak and Strong Ties


    among Supply Chain partners
    l

    Strong ties promote commitment but also restrict firms


    freedom to access new frontiers.
    The buyers may socially obligate themselves to partners with

    obsolete capabilities & ignore potential new partners with lower


    costs or better technologies
    l

    Weak ties (arm length relationships)


    Incentivizes partners to be on the cutting edge in cost and

    innovation
    Provides flexibility to severe ties if needs emerge.

    N.Viswanadham

    Global Supply Chain Management

    SCNs act as Risk


    Transmitters &
    Amplifiers
    l

    l
    l

    Efficiency Contributors of SCNs turned Risk Creators:


    Outsourcing, International Logistics, Internet, Credit through
    LCs, Trade & Financial Flow Liberalization,
    2008 Financial Crisis & Decline in Trade - De-Globalization
    2011 March 11, Earthquake, Tsunami, Nuclear crisis & Plant
    Shutdowns in Japan threatened supplies of semiconductors to
    car parts to the globe.

    Global Supply Chain Management

    The Great Trade Collapse


    Trade flows dropped by more than 20% from 2008Q2- 09Q2

    G
    L
    O
    B
    A
    L
    T
    R
    A
    D
    E

    The synchronization was due to the connectivity


    of global supply chains that reacted just in time
    to the collapse in demand
    The Great Trade Collapse: Causes, Consequences and Prospects A
    VoxEU.org Publication Edited by Richard Baldwin page 3
    N.Viswanadham

    Global Supply Chain Management

    Conclusion

    N. Viswanadham

    Global Supply Chain Management

    Framework to Study Global supply


    Chain Networks
    l

    Globalization has created dispersed supply chains


    which are vulnerable to and dependent on factors that
    are exogenous to the supply chain.
    Credit squeeze after the financial crisis, environmental
    regulations, protectionist policies of governments,
    political unrest, economic instability, and natural
    disasters are non-supply chain factors that affected the
    supply chains performance.
    This course presents the supply chain ecosystem
    framework to holistically model all the factors that
    interact with the supply chain and visualize all
    Operational, Strategic, Management & Execution issues
    and risk mitigation strategies..

    You might also like