Supply chain management

1. A supply chain is the network of all the individuals, organizations, resources, activities
and technology involved in the creation and sale of a product, from the delivery of source
materials from the supplier to the manufacturer, through to its eventual delivery to the
end user.
2. Value chain: A value chain is a set of activities that a firm operating in a specific industry
performs in order to deliver a valuable product or service for the market.
3. Supply chain management, then, is the active management of supply chain activities to
maximize customer value and achieve a sustainable competitive advantage. It represents
a conscious effort by the supply chain firms to develop and run supply chains in the most
effective & efficient ways possible. Supply chain activities cover everything from
product development, sourcing, production, and logistics, as well as the information
systems needed to coordinate these activities.
4. Global supply chain drivers
Market globalization drivers
(lifestyles, knowledge intensity, rising population, Global E – commerce, global firm,
infrastructure, world brands, global advertising, social media, sustainability at customer levels)
Cost globalization drivers
(economies of scale, accelerating innovation, advances in logistics, newly industrialized
countries, product development, resource scarcity, engaging locally, timing, cost of odoing
business, security and risk)
Government globalization drivers
Policies and regulation, tariff barriers, non tariff barriers, government buying and selling,
privatization, emerging market, preventing security breaches, trading blocs, WTO)
Competitive globalization drivers
Increased world trade, competitive battlegrounds, foreign acquirers, new competitors, born
global firms, interdependent countries, global centering, strategic alliances, commoditization,
talent
5. Global supply chain infrastructure
Transportation infrastructure
Communication infrastructure
Utilities infrastructure
Technology infrastructure
Supply chain security, risks and value
Other infrastructure (legal consideration, international contracts, and insurance; commercial
documents and customs clearance; terms of payment and currency of payment; Incoterms
6. Activities in global supply chain management
Logistic (global managing in order – processing, inventory, transportation, warehousing and
materials handing, packaging),
Purchasing ( types of purchasing strategy, outsourcing, offshoring and derivatives, global
customers and channel, order fulfillment and delivery,global supplier selection, global supplier
network)
Operation
make or buy decisions in global supply chains
global production and manufacturing
total cost in global supply chains
process – based quality standards
Market channel
make decisions in time, place, possesion and form of products
international market entry modes ( exporting and importing, licensing and franchising,
international joint ventures, foreign direct ownership)
7. Managing in global supply chain
Value of managing the location of global activities
Importance of coordination in global supply chains
Coordination mechanisms in global supply chains
Stakeholder and global suply chain sustainability