Supply Chain Logistics/ International Operations Lecture 14, 21 January 2009 Dr Michael Wynn-Williams 1.

Slides:



Advertisements
Similar presentations
Chapter 3 E-Strategy.
Advertisements

International Business 7e
Global Manufacturing and Materials Management
Introduction to LOGISTICS & Supply Chain Management Qafqaz University Center for Entrepreneurship Development and Research Ahmad Badalov Research Assistant,
15 Managing International Operations Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall.
Global Manufacturing and Materials Management
Lecture III Globalization: Driving Forces of Global Integration and the pressure to Localize ( ch. 2)
Managing International Information Systems
Introduction to International Business Discussion Section April 6, 2007 Sanny Liao.
Enterprise Systems Organizations are finding benefits from using information systems to coordinate activities and decisions spanning multiple functional.
13 Marketing Channel Professor Close.
International Business 9e
Global Production , Outsourcing , and Logistic
Operations Management Session 25: Supply Chain Coordination.
Global Production. Strategy, Production, Logistics  Value chain activities – Production, marketing, logistics, R&D, HR, IS  Production: – physical goods,
Global Production, Outsourcing, and Logistics
Global Production, Outsourcing and Logistics
Professor H. Michael Boyd, Ph.D.
Global Business Today 6e
Management Practices Lecture 11.
© University of Missouri-Columbia International Busines l McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
© McGraw Hill Companies, Inc., 2000 Global Manufacturing and Materials Management Chapter 16.
International Business Fourth Edition.
16.1 © 2006 by Prentice Hall 16 Chapter Managing International Information Systems.
Chapter 16. Global Production, Outsourcing, and Logistics
1 OM, Ch. 9 Supply Chain Design ©2009 South-Western, a part of Cengage Learning SUPPLY CHAIN DESIGN CHAPTER 9 DAVID A. COLLIER AND JAMES R. EVANS OM.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Lead Black Slide Powered by DeSiaMore1. 2 Chapter 12 Electronic Commerce and the Strategic Impact of Information Systems.
Strategy, Production and Logistics
Global Production, Outsourcing, and Logistics McGraw-Hill/Irwin International Business, 6/e, 7/e Portions © 2007, 2009 The McGraw-Hill Companies,
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter 14 Global Production McGraw-Hill/Irwin Global Business Today, 4/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Strategy,
1 Twelve C h a p t e rC h a p t e r The Strategy of International Business Part Five Competing in a Global Marketplace.
 Team 4: Peter Hogue, Cameron Lloyd, Breann Flores, Jonathon Jordan,
Global Business Management (MGT380) Lecture #26. Global Production, Outsourcing and Logistics.
© Ram Mudambi, Temple University, Lecture 08 Global Manufacturing and Logistics.
Chapter 14 Global Production, Outsourcing and Logistics 1.
Global Production, Outsourcing, and Logistics 11.
Introduction to product circuits Develop an understanding of production chains, circuits and networks and the differences between them Auto industry case.
Global Production, Outsourcing, and Logistics
Lead Black Slide. © 2001 Business & Information Systems 2/e2 Chapter 12 Electronic Commerce and the Strategic Impact of Information Systems.
INTRODUCTION TO INTERNATIONAL BUSINESS Global Production and Supply Chain Management Global Financial Management August 11, 2008 Discussion Section.
International Business An Asian Perspective
Management Information Systems Chapter Nine Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Md. Golam Kibria Lecturer,
Global Manufacturing and Supply Chain Management
Presented by: S.M.TABATABAEE NASAB. Supply Chain flow The supply chain- 1 The global environment- 2 Inter – corporate coordination - 15 Inter- functionalCoordination-
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Global Business Today 7e by Charles W.L. Hill.
Chapter 12 Global Production, Outsourcing, and Logistics.
21 st -Century Supply Chains Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
17-1 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Global Manufacturing and Supply Chain Management.
Global Production, Outsourcing and Logistics Dr. Ananda Sabil Hussein.
Global Production, Outsourcing, and Logistics Global Production, Outsourcing, and Logistics INTRODUCTION Where in the world should productive.
©2002 South-Western Chapter 6 Version 6e1 chapter Business Marketing 6 6 Prepared by Deborah Baker Texas Christian University.
Thirteen C h a p t e rC h a p t e r Global Operations Management Part Five Competing in a Global Marketplace.
McGraw-Hill/Irwin International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Sixteen Global Production, Outsourcing,
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 17-1 Part Six Managing International Operations Chapter Seventeen Global Manufacturing.
Chapter 15 Global Production and Supply-Chain Management 1.
Level 2 Business Studies AS90843 Demonstrate understanding of the internal operations of a large business.
17-1 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Part Six Managing International Operations Chapter Seventeen Global Manufacturing.
International Business 9e
Global Production, Outsourcing, and Logistics
Marketing Channels Delivering Customer Value
International Business 9e
Global Business Today 7e
Chapter 15 Managing International Operations
Chapter 15 Managing International Operations
International Business
Managing International Information Systems
Global Production, Outsourcing, and Logistics
Operations Management
Presentation transcript:

Supply Chain Logistics/ International Operations Lecture 14, 21 January 2009 Dr Michael Wynn-Williams 1

 Supply chain: a simplistic term for complex activities  It describes the system of resources and processes from raw materials to the market  The value chain describes a similar internal perspective for a single company adding value  The value chain concerns the exploitation of value, supply chain concerns management of the supply system  Supply chain management – Coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer  Logistics (materials management) is part of the supply chain process

The value chain links the value-creating activities involved in designing and bringing a product to market Source: Download Route

Value chain analysis also takes in upstream and downstream activities Source: Download Route

Buyers/ Customers Suppliers The Firm Forward integrationBackward integration Multiple distribution channels Multiple vendors Should all firms be fully vertically integrated?

Buyers/ CustomersSuppliers The Firm Forward integration Backward integration Multiple distribution channels Walkers Crisps Flavourings Farmers Packaging Manufacturers TESCO WH Smiths Should Walkers be a vertically integrated firm ?

 Should a firm make or buy the component parts that go into their final product?  The decision is based on Transaction Cost Analysis (O E Williamson)  “Bounded rationality” means that knowledge is limited – opportunism occurs when new information emerges or there is specificity  Costly contracts control opportunism

 Access to market pricing  Access to economies of scale  Strategic flexibility in sourcing components  Open to new developments  Reduces coordination costs  Strategic alliances with suppliers give benefits of vertical integration without the associated organizational problems

 “Bounded rationality” – perfect market is impossible  Avoids “friction” of transactions  Search costs  Contracting costs  Coordination costs  Williamson gave three dimensions of transaction costs  Frequency  Uncertainty  Specificity  Vertical integration reduces risk by internalising the employment contracts

 Walkers Crisps is a famous Leicester manufacturer of crisps  Suppliers include raw potatoes, flavourings and packaging  Walkers supplies supermarkets, pubs and local shops  You have been appointed as the manager of vertical integration  What opportunities are there for vertical integration?

 Role of just-in time inventory (JIT)  Economize on inventory holding costs  Speeds inventory turnover  Difficult to achieve over international distances  Drawback: no buffer stock  Role of organization  Organizational linkages more numerous and complex  Require a separate functional department  Role of IT and the internet  Track components across globe to an assembly plant  Electronic data interchange (EDI)

 Lower costs  Disperse manufacturing to efficient locations  Accommodate local demands  Decentralize production  Respond to shifts on customer demand  Time-based competition extremely important

Concentrated manufacturing favoured Decentralized manufacturing favoured Country factors Differences in politics, eco., culture Trade barriers Location externalities Exchange rates Substantial Important in industry Stable Few Not important in industry Volatile Technological factors Fixed costs Minimum efficient scale Flexible manufacturing technology High Available Low Not available Product factors Value-to-weight ratio Serves universal needs High Yes Low No

 Optimum PEST conditions  Externalities  Skilled labor pools  Supporting industries  Formal and informal trade barriers  Exchange rate Fixed costs Minimum efficient scale Flexible manufacturing (lean production) Flexible machine cells

 Two product features affect decisions  Value to weight ratio (Cement)  Product serves universal needs (Screws, Bolts)  Two basic strategies  Concentrating in a centralized location and serving the world market (Coke, Microsoft)  Decentralizing them in various regional or national locations close to major markets (Nike)

 Initially, established where labour costs low  Later, important centers for design and final assembly – Dispersed centers of excellence are consistent with a Transnational Strategy  Upward migration caused by pressures to:  Improve cost structure  Customize product to meet customer demand  An increasing abundance of advanced factors of production

 Describe different dimensions of global manufacturing strategy  Discuss factors important for making manufacturing location strategies  Examine issues related to global supply chain management  Explain how inventory management is a key dimension of the global supply chain

 Examine the international supply chain for the following groups of industries  Steel  Sports wear  Banking  Scotch whiskey  You are expected to come prepared with some background reading of these industries.

Download Route Williamson O E (1981) The economics of organization: the transaction cost approach in The American Journal of Sociology 87, 3, November 1981 pp Wynn-Williams M S (2009) Surfing the Global Tide. London: Palgrave Macmillan