Global Manufacturing and

Supply Chain Management

Presented To:
Mrs.Gitanjali Gupta
Why Manufacture Globally?
Cost
Access to raw-material
New Markets
Multi-Point Communication
Global Manufacturing Strategies
Manufacturing Configuration
Should manufacturing be centralized in one country or not
When should we have a centralized location?
When should we go for multidomestic location?
Coordination and Control
Linking or integrating activities into a unified system is called
COORDINATION
Defining organizational structure and reporting systems to
ensure timely implementation of policies is termed as
CONTROL
Global Manufacturing Strategies
Plant Location Strategies
Transportation costs, duties, proximity to customers and
suppliers, foreign exchange rate risk, economies of scale in
the production process, government incentives, climate,
technological requirements of the manufacturing process.
Plant Layout Planning Strategies
physical arrangement of economic activity centers within a
manufacturing facility
Every manufacturing facility cannot have the same type
layout—local conditions such as cost of labor, cost of land,
local culture must be considered in deciding about the plant
layout
Global Supply Chain
Management
Meaning of Supply Chain Management
Elements of Supply Chain Management
Supply Chain Management and
Enterprise Resource Planning (ERP)
E-Commerce
Internet, intranet, and extranet
SUPPLY CHAINMANAGEMENT
Supply chain management is the
coordination of material , information,
and funds from the initial raw material
suppliers to the ultimate consumers.
Role of Information Systems and
Technology
Key to successful global supply chain
management
INFORMATION TECHNOLOGY AND
GLOBAL SUPPLY CHAIN MANAGEMENT
a) Electronic data transfer
b) Enterprise resource planning
c) Extranet
d) Intranet
e) E-Commerce
Supply Chain Management
LINKAGE OF ACTIVITIES
BUYING
MAKING
MOVING
INTEGRATES
SUPPLIER
DISTRIBUTOR
MAJOR ENTITIES
Capacity, inventory levels, delivery schedule, payment terms

Retail
Supplier Manufacturer Distributor Customer
Outlets

Orders, return requests, repair and service requests, payments

Challenges in Supply Chain
Management
Operational Threats
Different languages
Differences in Currencies
Strategic Challenges
National Cultures
Technological capabilities
Tax Policies
Supplier Networks
Meaning of outsourcing
The process of a firm having inputs supplied to it from outside suppliers for the
production process.
Domestic outsourcing versus global outsourcing
Why go for domestic sourcing?
Why go for global sourcing?
Why pursue global outsourcing?
Reduce costs
improve quality
exposure to global technology
improve delivery of supplies
access to materials non-available otherwise
establish presence in a foreign market
to compete in the global market
RISK OF OUTSOURCING
Loss of control
Possibility of using obsolete technology
Poor Quality
Exposure to supplier risk