Global Supply Chain Management by hcj


									Logistics and Supply Chain
Introduction to Global Supply Chain
 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
Business Processes Of Supply Chain
 SC performs business processes as follows:
   The Customer Relationship Management
   The Supplier Relationship Management
   The Customer Service Management Process
   The Demand Management Process
   The Order Fulfillment Process
   The Manufacturing Flow Management
   The Product Development and
    Commercialization Process
   The Returns Management Process
Why do we need a SC system?
   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
 Built upon eight key business processes that
  are both cross-functional and cross-firm in
 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
 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
 Parts Shortages.
 Underutilized capacities of manufacturing
 Excessive finished goods.
 Increased transportation distances
 Cultural and Social difference among the
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
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
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
   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

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