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Global Supply Chain Management
Belfast  Carburetors and  distributors Treforest  Spark plug insulators Leamington  Foundry production of engine components Dagenham  Final assembly Bordeaux  Transmissions Enfield  Instruments, fuel and water gauges, plugs Basildon  Radiators, water pump assembly, engine components Genk  Body panels, road wheels Wülfrath  Transmission parts, engine components Saarlouis  Final assembly Cologne  Die-cast transaxle casings, gear and engine components Valencia  Final assembly Ford Example
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why GSCM????
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why GSCM????
Questions GSC?????????? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Global Supply Chain Associates (GSCA) 1999
Questions GSC?????????? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Global Supply Chain Associates (GSCA) 1999
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Global SCM Factors Source: Global Supply Chain Associates (GSCA) 1999
Global Supply Chain System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Risk Management in GSC ,[object Object],[object Object],[object Object]
Factors Impacting Exposure to Risks ,[object Object],[object Object],[object Object],[object Object]
Sources of Risks
MANAGING  UNKNOWN-UNKNOWN
Managing the Unknown-Unknown ,[object Object],[object Object],[object Object]
Redundancy Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Redundancy Example: Problems with New Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Redundancy Trade-Offs ,[object Object]
Sensing and Responding ,[object Object],[object Object],[object Object],[object Object]
Sensing and Responding Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sensing and Responding Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Adaptability ,[object Object],[object Object],[object Object]
Adaptability Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recovery Effort by Toyota  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Vehicle Production & P-Valves Inventory
Outcome ,[object Object],[object Object],[object Object],[object Object],[object Object]
Single Sourcing and Adaptability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MANAGING  KNOWN-UNKNOWN
[object Object],[object Object],[object Object],[object Object],[object Object]
Flexible Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Approaches to Flexible Strategy
[object Object],[object Object],[object Object],[object Object],[object Object],Requirements for Global Strategy Implementation
Other Issues in GSCM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Regional Differences in Logistics First World Emerging Third World Infrastructure Highly developed Under development Insufficient to support advanced logistics Supplier operating standards High Variable Typically not considered Information system availability Generally available Support system not available Not available Human resources Available Available with some searching Often difficult to find
Elements of a Global SCM Customer Service Requirements Organizational Design and Training Requirements Performance Goals Global Supply Chain Management Business Processes Plant and Distribution Center Network Design Information Systems Key Customer and Supplier Relationships Performance Metrics Inventory Management Outsourcing and Third-Party Logistics Relationships
Improve Quality Supplier Networks Improve  Delivery of Supplies Establish a Presence in a Foreign Market Reduce Costs Reasons for Global Sourcing Strategies React to Competitor’s Offshore Sourcing Practices Increase Exposure to Worldwide Technology Strengthen Reliability of Supply Gain Access to Materials Satisfy Offset Requirements
Evaluate operating and competitive environments Define scope of international purchasing effort Identify and evaluate potential suppliers worldwide Determine appropriate nature of buyer-supplier relationship Request/evaluate proposals from suppliers Continual reevaluation of implementation status, requirements, and capabilities Select “best” supplier, establish contract terms and conditions, and build desired relationship Steps in the Global Sourcing Process
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Global Supply Chain

  • 1. Global Supply Chain Management
  • 2. Belfast Carburetors and distributors Treforest Spark plug insulators Leamington Foundry production of engine components Dagenham Final assembly Bordeaux Transmissions Enfield Instruments, fuel and water gauges, plugs Basildon Radiators, water pump assembly, engine components Genk Body panels, road wheels Wülfrath Transmission parts, engine components Saarlouis Final assembly Cologne Die-cast transaxle casings, gear and engine components Valencia Final assembly Ford Example
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  • 32. Regional Differences in Logistics First World Emerging Third World Infrastructure Highly developed Under development Insufficient to support advanced logistics Supplier operating standards High Variable Typically not considered Information system availability Generally available Support system not available Not available Human resources Available Available with some searching Often difficult to find
  • 33. Elements of a Global SCM Customer Service Requirements Organizational Design and Training Requirements Performance Goals Global Supply Chain Management Business Processes Plant and Distribution Center Network Design Information Systems Key Customer and Supplier Relationships Performance Metrics Inventory Management Outsourcing and Third-Party Logistics Relationships
  • 34. Improve Quality Supplier Networks Improve Delivery of Supplies Establish a Presence in a Foreign Market Reduce Costs Reasons for Global Sourcing Strategies React to Competitor’s Offshore Sourcing Practices Increase Exposure to Worldwide Technology Strengthen Reliability of Supply Gain Access to Materials Satisfy Offset Requirements
  • 35. Evaluate operating and competitive environments Define scope of international purchasing effort Identify and evaluate potential suppliers worldwide Determine appropriate nature of buyer-supplier relationship Request/evaluate proposals from suppliers Continual reevaluation of implementation status, requirements, and capabilities Select “best” supplier, establish contract terms and conditions, and build desired relationship Steps in the Global Sourcing Process