GLOBAL SUPPLY

CHAIN MANAGEMENT

Dec 16, 2020

 GLOBAL SUPPLY CHAIN MANAGEMENT

A Global supply chain is made up

of the interrelated organizations,
resources, and processes that
create and deliver products and
services to end customers. In the
instance of global supply chains,
it is extended around the world.

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Some supply chain leaders

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Forces Driving Globalization
Global Market forces

Technological Forces

Global Cost Forces

Political and Economic Forces

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 Global Supply Chain System Components
International distribution
systems
-Manufacturing(domestic)
-Distribution (overseas)
Fully integrated global
International suppliers Offshore manufacturing
supply chain
- Raw material and - Product is sourced and -Products are supplied,
components(foreign manufactured in a single manufactured and
suppliers) foreign location distributed from
factories located
- final assembly throughout the world.
(domestic) -Value of GSCM is
realized by taking
advantage of national
boundaries.
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Areas to consider while moving from domestic
to International supply chain
Substantial Forecasting
geographical difficulties in foreign Infrastructure
distance market
- Labor skills
- Availability of
supply
- Supplier quality
- Transportation and
communication
facility

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Advantages Disadvantages

Potential expansion of business Huge investment of money

Enhance speed and efficiency

Market instability
Competitive advantage
Choosing the correct supplier is difficult
Untapped markets

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Quality Management
Quality Management is the act of overseeing all activities and tasks that
must be accomplished to maintain standardization and effectiveness.
It includes,

Determination of Quality Policy

Creating and implementing quality planning and

assurance

Quality Control

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Quality Enhancement
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4 Major Quality Management Issues

The Culture of Managing by Departments

Resistance to Technological Innovation

Upper Management's Unwillingness to Provide Additional Resources and Time

Increasing Complexity of the Supply Chain

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Steps to reduce quality management issues

Forging close co- Establishing

Organization consultancy firms for
operation with
Collaboration and early Certification as design and testing
stakeholders to keep all Having testing labs at
engagement by technical experts protocols
parties informed about multiple global
manufacturers with providing guidance to
upcoming opportunities Addressing global locations serves to
testing and certification clients at earlier stages
and to understand the manufacturing and reduce counterfeiting.
organizations. of product
technical requirements supply chain (product
development.
in each country. shipping durability).

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Supplier Quality Management Strategy

supplier quality must hold Organisations provide

the same importance as specification limits, blueprints.
internal quality
initiatives.

Cloud-based quality
Quality data can be automatically
management solutions synced through the cloud

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 SUPPLIER NETWORK
It is a common, virtual platform where suppliers and buyers can collaborate and do business together from
any part of the globe.

It helps discover suitable opportunities for buyers, speed up procurement cycle that results in timely selection
of goods, delivery, and payment.

It reduces error, paperwork, and delays.

It gives buyers plenty of options from which they can select suppliers according to their preference and
convenience, thus reducing cost and increasing profits.

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BENEFITS OF SUPPLIER NETWORKS

AUTOMATED E-INVOICING AND

CATALOG SIMPLIFIED SOURCING CONTRACT
PROCESSES REDUCING REDUCTION IN PAPER
MANAGEMENT PROCESS MANAGEMENT
MANUAL EFFORTS FLOWS
• reduces processing time Will include • Viewing forum event • a reduction in errors and • keeping a close watch on
• smooth flow of • future pricing scores to identify the delays due to paper flows. their contract terms
information • item specifications preferred supplier • Reduces contract
• special offers violations,

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 Contd

REDUCTION IN UP-TO-DATE MORE VISIBILITY ENHANCED SUPPLIER

PURCHASING CYCLE SUPPLIER AND BETTER PERFORMANCE
TIMES INFORMATION RELATIONSHIPS MANAGEMENT
• in timely processing of • integrates with supplier • visibility of order • Monitors performance
orders, delivery, management software • invoice and development
processing of invoice, solution • payment status. reports.
and payments • Enables onboarding of • Helps suppliers improve
potential suppliers. on their pain areas.

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 Example of supplier network
The below diagram is an example of a simplified supply chain; the supply chain shows the
movement of material flow from the Apple farm right through the production process to the
end users.

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 EXAMPLES OF UPSTREAM AND DOWNSTREAM SUPPLIER
NETWORK
A supply chain network shows the links between organisations and how information and materials flow
between these links. The more detailed the supply chain network the more complex and web like the network
becomes.

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MANAGING A GLOBAL SUPPLIER NETWORK

Global companies operate local offices to maintain contact with

the customers for sales, services and operational purposes.

This approach is referred to as a Global Supply Network and is a

sophisticated, though familiar, supply chain model.

Local often shorten their supply chains by collaborating with

global suppliers.

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 INVENTORY MANAGEMENT

Inventory Management tracks Companies use it to gain an accurate

inventory throughout the global view of available goods, then match
supply chain and stores the data in a them up with demand and ensure
central, cloud-based network. equilibrium in the process.

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 CONSIDERATIONS FOR INVENTORY

Geography and Availability of qualified Tax and industry regulations

infrastructure labour

BASICS OF INVENTORY MANAGEMENT

Ordering Inventory levels Stockouts Finances Demand

• Economic • On-hand stock • Associated • Average • Annual
order quantity • Net stock with high inventory demand
(EOQ) model • Net inventory inventory costs value • Forecast
• Inventory annual
carrying cost demand
• Lost sales cost • Lead time
• Total policy • Lead time
cost demand
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 IMPORTANCE OF INVENTORY MANAGEMENT
Cross function information sharing

Cross vendor information sharing

FOR EFFECTIVE INVENTORY MANAGEMENT

Re evaluate lead times

Choose supply chain partners carefully

Local consultant
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 References
TEAM MEMBERS
• Investopedia.com>terms>quality-management.
• Quality Assurance for Global Manufacturing (4 May
2009)- Randall W. Luecke.
• 7 Quality Management issues on every manufacturers
• Priyanka k 19MBA1048
mind- Steven Brand.
• Manage Manufacturing Quality Across Your Global
• Sharook Manzur 19MBA1033
Supply Chain (10 Ocober,2019)- Infinty QS.
• https://www.tefen.com/
• Harshit Snehal 19MBA1003
• https://www.adaptalift.com.au/ • Daffodil Jashia Solomon S
• https://www.zycus.com/
• https://innovecs.com/blog/global-supply-chain-managemen
19MBA1018
t/
• https://www.supplychaindigital.com/supply-chain/what-glo
bal-trade-management
• http://www.tradeready.ca/2017/topics/supply-chain-manag
ement/global-supply-chain-management/
• https://www.ibm.com/supply-chain/inventory-management
• https://www.mbaskool.com/business-concepts/operations-l
ogistics-supply-chain-terms/15282-inventory-management.
html
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