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PART 3
SUPPLY CHAIN LOGISTICS DESIGN
GLOBAL SUPPLY
CHAINS
CHAPTER 11
INTRODUCTION
Globalization presents
many opportunities as
well as challenges for
logistics and supply chain
operations. Challenges are
demanding logistics
operating
environments,
security
considerations and
Opportunities include more complex total
low wages, cost analyses.
abundance of
materials and so on.
Global Economies

Many organizations in the present • Increase in revenue

• Economies of scale
day have materials or products
• Advances in technology
that are sourced globally or
having global customer base.
Primary • Reduction of tax
liability
objectives of • Reduce market access
globalization uncertainty
Global supply chain operations is • Enhance sustainability.
are becoming the norm for most
firms.
Global Supply Chain Integration

Domestic logistics focuses on performing movement and storage

activities to support supply chain integration in a relatively stable and
consistent environment.

Global logistics must support operations in a variety of different

national, political and economic settings.

Strategic initiatives must change as a firm and its supply chain become
progressively more global.
Global Logistics Integration
1
Logistics in a Global
Economy

3
Managing global
supply chain.

2
Globalization
Strategies
Globalization Strategies

Supply chain globalization can be

characterized under 4 strategies
•No international strategy.
•Multi-domestic strategy.
•Global strategy.
•Transnational strategy.
Managing the Global supply chain

To enhance a firm’s global capabilities, logistics

management must consider five major difference
between domestic and international operations.
• Performance cycle structure
• Transportation
• Operational considerations
• Information systems integration
• Alliance.
Global Sourcing

Rational for Challenges

Guidelines
low cost for low cost
for
country country
sourcing.
sourcing sourcing
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