Global Supply Chain Management Presented by Nayan Gaurav
Global Supply Chain Management Presented by : Nayan Gaurav (PG 08052) Nayan Gaurav Sunday, February 28, 2021
We are moving towards a global economy. One way of approaching that is to pull the covers of your head. Another is to say : - It may be more complicatedbut that’s the world I am going to live in. I might as well be good at it. Phil Condit- CEO of BOEING, November 1999 Nayan Gaurav Sunday, February 28, 2021
Presentation overview � Global supply chain defined � Topic explanation � Surrounding issues � Real world example � Summary Nayan Gaurav Sunday, February 28, 2021
Global supply chain � An integrated process where several business entities such as suppliers, manufacturers, distributors, and retailers work together to plan, co-ordinate and control materials, parts and finished goods from supplier to customers. One or more of these business entities operate in different countries. Nayan Gaurav Sunday, February 28, 2021
Falling international trade barrier mean. . Nayan Gaurav Sunday, February 28, 2021
…. Rising profit Nayan Gaurav Sunday, February 28, 2021
Advantages of global supply chain � Reduced total cost � Inventory cost reduction � Improve fulfillment cycle time � Reduced cycle time � increase forecast accuracy � Productivity increased � Improve capacity � Expand international connection � Increase intellectual capital � Delivery improvement Nayan Gaurav Sunday, February 28, 2021
Global Supply-Chain Issues Supply chains in a global environment must be able to þ React to sudden changes in parts availability, distribution, or shipping channels, import duties, and currency rates þ Use the latest computer and transmission technologies to schedule and manage the shipment of parts in and finished products out þ Staff with local specialists who handle duties, freight, customs and political issues Nayan Gaurav Sunday, February 28, 2021
Potential global supply chain Obstacle � Inefficient transportation and distribution system. � Market instability � Language barrier � Customs � Political turmoil � Trade imbalance � Export surges and recessions Nayan Gaurav Sunday, February 28, 2021
Combating obstacle � Join nation groups � Be innovative � Be flexible � Research � New technology � Vertically integrate � Form consortium Nayan Gaurav Sunday, February 28, 2021
Classical logistic issues � Facility location � Sourcing � distribution Nayan Gaurav Sunday, February 28, 2021
International influences on logistic issues or factors. . Nayan Gaurav Sunday, February 28, 2021
Costs � Local labor rates � Local space cost � International � Currency freight tariffs exchange rate Nayan Gaurav Sunday, February 28, 2021
Custom duty � Duty rates differ by commodity and level of assembly � Duty drawback � Impact of GATT / WTO : changes over time � Transfer � Duty pricing suspension Nayan Gaurav Sunday, February 28, 2021
Taxes on corporate income � Different � Tax markups by country havens and not havens � Make vs. Buy effect Nayan Gaurav Sunday, February 28, 2021
Offset trade and local content � Local content requirement for government purchases � Content � Offset for preferential duty rates trade requirements Nayan Gaurav Sunday, February 28, 2021
Export regulation � Export � Denied licenses parties list Nayan Gaurav Sunday, February 28, 2021
Time � Lead � Cycle time � Transit time � Export license approval cycle � Customs clearance Nayan Gaurav Sunday, February 28, 2021
Competencies Needed for Efficient Global SCM Positioning The selection of strategic and structural approaches to guide global operations Integration The establishment of what to do and how to do it creatively Agility The achievement and retention of global competitiveness and global customer success Measurement The internal and external monitoring of global operations Sunday, February 28, 2021 Nayan Gaurav
Selecting a global supply chain model Nayan Gaurav Sunday, February 28, 2021
Different types of global supply chain model � Own and manage your own infrastructure � Use strategic alliances � Partner with an asset based third party � Partnership with a global integrator of logistics services Nayan Gaurav Sunday, February 28, 2021
Own and manage your own infrastructure � Pro -maximum control � Con -heavy cost Nayan Gaurav Sunday, February 28, 2021
Use strategic alliance � Pro - convenience - large areas covered � Con - unreliable alliance-prone Nayan Gaurav Sunday, February 28, 2021
Partner with an asset-based third party � Pro - operational standards - uniform identity and marketing strength - dedicated management structure � Cons - ignorance of complex custom regulation - lack of connections - local economic downturn Nayan Gaurav Sunday, February 28, 2021
Partnership with a global integrator of logistics � Pro - customer friendly -in country knowledge - true information system integration - Uniform standards � Con - limited use - less control Nayan Gaurav Sunday, February 28, 2021
Example- Nayan Gaurav Sunday, February 28, 2021
GSCM at Digital Equipment Corp. ØHISTORY 1957: Founded by Ken Olsen 1961: Started Construction of first computer PDP-1 1978: Took Over the majority of minicomputer market 1980: Second Largest Computer company in the world 1990: DEC suddenly found its sales faltering 1998: DEC was sold to Compaq 2002: Compaq was taken over by HP 2003: Digital Global Soft is a well respected IT service company in India. Earlier it was 51% subsidiary of DEC Nayan Gaurav Sunday, February 28, 2021
Digital equipment corporation Implemented a global supply chain model and Ø Reduced plant from 33 to 12 Ø Manufacturing cost decreased by $500 million Ø Logistic cost decreased by more than $300 million Ø Reduced services facility 34 to 17 Ø Annual cost reduction of more than $80 million Nayan Gaurav Sunday, February 28, 2021
Ø Physical asset reduced to $34 million Ø Inventory reduced by $74 million Ø Increased unit reduction by 500 percent Ø Increased revenue Ø Five times more computers were sold. Nayan Gaurav Sunday, February 28, 2021
Summary of Global supply chains � Advantage include reduced cost, delivery performance, inventory reduction, forecast accuracy, cycle time, productivity, capacity, service, international connection � Overcome a variety of international obstacles. � Selecting and implementing a global supply chain model is effective when combined with flexibility. Nayan Gaurav Sunday, February 28, 2021
THANK YOU ALL FOR LISTENING Nayan Gaurav Sunday, February 28, 2021
- Slides: 31