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   Globalization’s impact on Enterprise Supply Chain

   Complexities and Risks (Identification, Mitigation, Management)

   Supply Chain Planning, Execution, Visibility, etc.

   Business Processes

   Integration

   Enabling Technologies

   Supply Chain Management in India : Logistics Overview
   A network of facilities and distribution options that performs the
    functions of

        procurement of materials,

        transformation of these materials into intermediate and
         finished products, and

        distribution of these finished products to customers

   Types of transactions

        Physical flows

        Data flows
   Product descriptions, specifications, and prices.

   Purchase order information like quantities, and shipment dates.

   Planned and actual production, shipment, and delivery dates.

   Technical and engineering data on products, and components .

   Accounting information such as prices, and account numbers, and

   Product quality data, such as test results and warranties.
   Intensified competition and pressure to lower costs has increased

   Standardization of information technologies

   Global sprawl
   Volatile fuel prices             » Service failures caused by
                                       supply       chain  partners
                                       (delivery, quality)


   Increases in cost of labor due   » Shortage of skilled resources
    to currency fluctuations

   Supplier    planning        /    » Reduced       accuracy      of
    communication issues               forecasting/planning

   Changes   in   customer     /    » Problems    with      logistics
    consumer preferences               capacity/complexity
   Logistics Risk
      The dangers associated with the physical movement of
         goods and materials.

   Supply & Supplier Risk
      The disruption of raw material and component supplies.

   Cost/Commodity Risk
      The risk is either failing to recognize cost-effective
        opportunities or not being able to migrate when the
        opportunities are discovered.

   Capacity Risk
      Relates primarily to the integrity of a company's facilities or
        those of its business or outsourcing partners.
   Use of commercial airliners as missiles

   Threat Categorization

        Transportation modes (air, road, rail, maritime)

        Entry points (airport, borders, ports, delivery points etc.)

        Threat areas (passengers, employees, cargo, shippers etc.)
   Container Security Initiative (Advance Shipment Note)

        Addresses the potential threat of the container itself.

        Considers the history of the container, not just the contents
         of the container.

   C-TPAT (Customs-Trade Partnership Against Terrorism)

        Mechanism for companies to work with Customs Service.

        Intent is for companies to become known entities to the
         Customs Service and become a more trusted importer of
         goods to the country.
   Security risk of network infiltration and information theft

   Need for an authentication solution

   Authentication Techniques

        Fingerprint scanners and sensors

        Facial recognition

        Tongue print check in military operations

        Digital Signatures and Certificates
   Dynamic World

        Intensive competition

        Optimize Processes for increasing efficiencies and reducing
         costs

   Need
      End-to-end visibility: Capturing the data of material flows at
        all levels of the value chain

        Sense and Respond

        Item-level tracking
   Most primitive form of tagging.

   The information about an item can be captured using optical barcode
    scanners.

   Limitations

        Damages

        Human Interaction and need for close line of sight

        Lack of Information

        Speed and Scalability
   e-tagging technology

   Enables passive object tagging

   Automatic data capture, using RF sensing as opposed to optical
    sensing in the case of barcodes.
   Reliable

   Range

   Amount of data that can be stored

   Automated data capture

   Total Visibility
   Smart Tag

   Combination of EPCs (Electronic Product Codes) & RFID

   Low cost as opposed to expensive and proprietary RFID.

   However, it is Open-Standard based and currently no adoption of
    a standard code.
   Corporate financial scandals of Enron

   to protect investors by improving the accuracy and reliability of
    corporate disclosures made in agreement to the securities laws

   Communicate all Business units on frequent basis

   Visibility

        From purchase orders to delivery orders

        Operations, inventories and other assets
   Inventory and Fixed Asset Reconciliation

   Material Transfers

   Segregation of Duties in the Procure-to-pay Process

   Vital information for the CFO or Chief Compliance Officer

        Vendor Managed Inventories

        Long Term Purchase Agreements

        Lease Agreements

        Letters of Intent
   Wider scope -> more player involved

   Technology disparity within intensified

   Systems not integrated

   Flexibility

   Cost optimization
   Cloud Computing is a computing paradigm in which tasks are
    assigned to a combination of connections, software, and services
    accessed over a network.

   The ultimate form of globalization
   Advantages

        lower-cost labour pools

        IT services without the infrastructure investment

        off-site operational efficiency

        CapEx Savings

   Disadvantages

        A loss of infrastructure visibility

        Degree of blind faith

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Supply Chain Management: India vis-à-vis Global Perspective pt 1

  • 1.
  • 2. Globalization’s impact on Enterprise Supply Chain  Complexities and Risks (Identification, Mitigation, Management)  Supply Chain Planning, Execution, Visibility, etc.  Business Processes  Integration  Enabling Technologies  Supply Chain Management in India : Logistics Overview
  • 3.
  • 4.
  • 5. A network of facilities and distribution options that performs the functions of  procurement of materials,  transformation of these materials into intermediate and finished products, and  distribution of these finished products to customers  Types of transactions  Physical flows  Data flows
  • 6. Product descriptions, specifications, and prices.  Purchase order information like quantities, and shipment dates.  Planned and actual production, shipment, and delivery dates.  Technical and engineering data on products, and components .  Accounting information such as prices, and account numbers, and  Product quality data, such as test results and warranties.
  • 7.
  • 8.
  • 9. Intensified competition and pressure to lower costs has increased  Standardization of information technologies  Global sprawl
  • 10. Volatile fuel prices » Service failures caused by supply chain partners (delivery, quality)  Increases in cost of labor due » Shortage of skilled resources to currency fluctuations  Supplier planning / » Reduced accuracy of communication issues forecasting/planning  Changes in customer / » Problems with logistics consumer preferences capacity/complexity
  • 11. Logistics Risk  The dangers associated with the physical movement of goods and materials.  Supply & Supplier Risk  The disruption of raw material and component supplies.  Cost/Commodity Risk  The risk is either failing to recognize cost-effective opportunities or not being able to migrate when the opportunities are discovered.  Capacity Risk  Relates primarily to the integrity of a company's facilities or those of its business or outsourcing partners.
  • 12.
  • 13. Use of commercial airliners as missiles  Threat Categorization  Transportation modes (air, road, rail, maritime)  Entry points (airport, borders, ports, delivery points etc.)  Threat areas (passengers, employees, cargo, shippers etc.)
  • 14. Container Security Initiative (Advance Shipment Note)  Addresses the potential threat of the container itself.  Considers the history of the container, not just the contents of the container.  C-TPAT (Customs-Trade Partnership Against Terrorism)  Mechanism for companies to work with Customs Service.  Intent is for companies to become known entities to the Customs Service and become a more trusted importer of goods to the country.
  • 15. Security risk of network infiltration and information theft  Need for an authentication solution  Authentication Techniques  Fingerprint scanners and sensors  Facial recognition  Tongue print check in military operations  Digital Signatures and Certificates
  • 16.
  • 17. Dynamic World  Intensive competition  Optimize Processes for increasing efficiencies and reducing costs  Need  End-to-end visibility: Capturing the data of material flows at all levels of the value chain  Sense and Respond  Item-level tracking
  • 18. Most primitive form of tagging.  The information about an item can be captured using optical barcode scanners.  Limitations  Damages  Human Interaction and need for close line of sight  Lack of Information  Speed and Scalability
  • 19. e-tagging technology  Enables passive object tagging  Automatic data capture, using RF sensing as opposed to optical sensing in the case of barcodes.
  • 20. Reliable  Range  Amount of data that can be stored  Automated data capture  Total Visibility
  • 21.
  • 22. Smart Tag  Combination of EPCs (Electronic Product Codes) & RFID  Low cost as opposed to expensive and proprietary RFID.  However, it is Open-Standard based and currently no adoption of a standard code.
  • 23.
  • 24. Corporate financial scandals of Enron  to protect investors by improving the accuracy and reliability of corporate disclosures made in agreement to the securities laws  Communicate all Business units on frequent basis  Visibility  From purchase orders to delivery orders  Operations, inventories and other assets
  • 25. Inventory and Fixed Asset Reconciliation  Material Transfers  Segregation of Duties in the Procure-to-pay Process  Vital information for the CFO or Chief Compliance Officer  Vendor Managed Inventories  Long Term Purchase Agreements  Lease Agreements  Letters of Intent
  • 26.
  • 27. Wider scope -> more player involved  Technology disparity within intensified  Systems not integrated  Flexibility  Cost optimization
  • 28.
  • 29. Cloud Computing is a computing paradigm in which tasks are assigned to a combination of connections, software, and services accessed over a network.  The ultimate form of globalization
  • 30. Advantages  lower-cost labour pools  IT services without the infrastructure investment  off-site operational efficiency  CapEx Savings  Disadvantages  A loss of infrastructure visibility  Degree of blind faith