Overview of Global Logistics & Supply Chain Management

Scheduling

the arrival of materials and other inputs Warehousing and inventory control Strategic choice of international warehousing facilities Scheduling production Packaging, transportation and final delivery Analysis of transportation costs

Logistics management covers

The

design and management of a system that controls the flow of materials into, through and out of the international corporation

Global logistics

1. .

Materials management Physical distri!utions

2 major phases of movement of materials

1. . ".

The systems concept The total cost concept The trade#off concept

Major concepts in Global Logistics

The activities involved in Supply chain are i. Purchasing ii. Manufacturing iii. $ogistics iv. %istri!ution v. Transportation and vi. Marketing

Global Supply Chain Management

&overs

!oth logistics and operations 'ncludes activities such as sourcing, procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distri!ution

The nternational Supply Chain!Global Supply Chain

1. .

Supply chain as a cross#functional entity Supply chain as the integrator and coordinator of production and logistics activities

Two main aspects of SCM

1. . ". +. ,. . . . . . .

Su!stantial geographical distances (orecasting pro!lems)difficulties in foreign markets (luctuations in e*change rates for different currencies %emand for great variety of products 'nade-uate infrastructures such as la!or skills, availa!ility of supply Supplier -uality $ack of local process e-uipments and technologies 'nade-uate transportation facilities and 'nade-uate telecommunication facilities

"reas to be consi#ere# while moving from #omestic to nternational supply chain

Global Supply Chain

Suppliers
.rder processi ng

&orporation

&ustomers .rder placement

transp ortati on storag e

Materials manageme nt 'nventory managem ent

Physical distri!ution

transportati on Physical distri!ution

Storage

'nventory manageme nt

(orward and reverse flows of information, products and funds

Two i. ii.

ma/or areas of 0lo!al $ogistics are 0lo!al sourcing and 0lo!al distri!ution

Managing Global Logistics

%emand forecasting Purchasing Materials management 1e-uirement planning Production planning Manufacturing inventory Warehousing $ogistics Material handling management 'ndustrial packaging (inished goods inventory %istri!ution planning .rder processing Physical Transportation distri!ution &ustomer service Strategic planning 'nformation technology Marketing Sales

Supply chain mgmt

Components of Global Logistics

i. ii. iii. iv. v. vi. vii. viii. i*. *. *i.

Transport Mode 'nventories Agents (inancial risk &argo risk 0overnment agencies Administration &ommunication 'nsurance Packaging Payment

$omestic vs nternational Logistics

%alue a##itions&