Professional Documents
Culture Documents
Retail
Supplier Manufacturer Distributor Customer
Outlets
transportation services,
receiving, invoicing, and payment.
Supply chain management
systems
Intranets
Extranets
Supply chain management software
EXAMPLE
Sales Representative (Brussels) Factory (Hong Kong)
Customer Order
online Production
Warehouse replenishes Customer Service
Track Representative
Enterprise System
Shipment Date
Stock of Parts
Corporate Headquarter
(London)
Accounting
Payroll
Cost Centers Available Cash
Balance Sheets Accounts Receivables/ Payables
Quality and Supply Chain
Meaning of Quality
Meeting or exceeding the expectations
of a customer
Total Quality Management (TQM)
versus Acceptable Quality Level (AQL)
Zero defects and TQM
Challenges in Supply Chain
Management
Operational Threats
Different languages
Differences in Currencies
Differences in Measurement Systems (metric versus decimal)
Strategic Challenges
National Cultures
Technological capabilities
Tax Policies
National Culture
Western culture typically foster adversarial positions in which
buyers and sellers share as little information as possible.
Toyota requires a broad understanding of a potential supplier’s
manufacturing capabilities and financial position
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
Outsourcing Configurations
Vertical Integration
Arm’s-length purchases from outside
suppliers
Japanese keiretsu relationships with
suppliers
Make or buy Decisions
Supplier Relations
How much should be the degree of
involvement with your suppliers?
Inventory Management
Outsourcing from around the world and
its impact on inventory management
issues of distance, time, and
uncertainty in foreign environment
Just-In-Time Systems