1. Global Supply Chain Management
Presented by :-
Nayan Gaurav (PG08052)
Nayan Gaurav
Tuesday, April 23, 2019

2. We are moving towards a global economy.
One way of approaching that is to pull the covers of your head.
Another is to say :- It may be more complicated- but that’s the world I am going to live in.
I might as well be good at it.
Phil Condit- CEO of BOEING, November 1999
Nayan Gaurav
Tuesday, April 23, 2019

3. Presentation overview
Global supply chain defined
Topic explanation
Surrounding issues
Real world example
Summary
Nayan Gaurav
Tuesday, April 23, 2019

4. Global supply chain
An integrated process where several business entities such as suppliers, manufacturers, distributors, and retailers work together to plan, co-ordinate and control materials, parts and finished goods from supplier to customers. One or more of these business entities operate in different countries.
Nayan Gaurav
Tuesday, April 23, 2019

5. Falling international trade barrier mean..
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Tuesday, April 23, 2019

6. ….Rising profit
Nayan Gaurav
Tuesday, April 23, 2019

7. Advantages of global supply chain
Reduced total cost
Inventory cost reduction
Improve fulfillment cycle time
Reduced cycle time
increase forecast accuracy
Productivity increased
Improve capacity
Expand international connection
Increase intellectual capital
Delivery improvement
Nayan Gaurav
Tuesday, April 23, 2019

8. Global Supply-Chain Issues
Supply chains in a global environment must be able to
React to sudden changes in parts availability, distribution, or shipping channels, import duties, and currency rates
Use the latest computer and transmission technologies to schedule and manage the shipment of parts in and finished products out
Staff with local specialists who handle duties, freight, customs and political issues
Nayan Gaurav
Tuesday, April 23, 2019

9. Potential global supply chain Obstacle
Inefficient transportation and distribution system.
Market instability
Language barrier
Customs
Political turmoil
Trade imbalance
Export surges and recessions
Nayan Gaurav
Tuesday, April 23, 2019

10. Combating obstacle Join nation nation groups Be innovative Be flexible
Research
New technology
Vertically integrate
Form consortium
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11. Classical logistic issues
Facility location
Sourcing
distribution
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Tuesday, April 23, 2019

12. International influences on logistic issues or factors..
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13. Costs Local labor rates Local space cost International freight tariffs
Currency exchange rate
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14. Custom duty Duty rates differ by commodity and level of assembly
Duty drawback
Impact of GATT / WTO : changes over time
Transfer pricing
Duty suspension
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15. Taxes on corporate income
Different markups by country
Tax havens and not havens
Make vs. Buy effect
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16. Offset trade and local content
Local content requirement for government purchases
Content for preferential duty rates
Offset trade requirements
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17. Export regulation Export licenses Denied parties list Nayan Gaurav
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18. Time Lead time Cycle time Transit time Export license approval cycle
Customs clearance
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19. Competencies Needed for Efficient Global SCM
Positioning
The selection of strategic and structural approaches to guide global operations
Integration
The establishment of what to do and how to do it creatively
Agility
The achievement and retention of global competitiveness and global customer success
Measurement
The internal and external monitoring of global operations
Tuesday, April 23, 2019
Nayan Gaurav

20. Selecting a global supply chain model
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Tuesday, April 23, 2019

21. Different types of global supply chain model
Own and manage your own infrastructure
Use strategic alliances
Partner with an asset based third party
Partnership with a global integrator of logistics services
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22. Own and manage your own infrastructure
Pro
-maximum control
Con
-heavy cost
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Tuesday, April 23, 2019

23. Use strategic alliance
Pro
- convenience
- large areas covered
Con
- unreliable alliance-prone
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Tuesday, April 23, 2019

24. Partner with an asset-based third party
Pro
- operational standards
- uniform identity and marketing strength
- dedicated management structure
Cons
- ignorance of complex custom regulation
- lack of connections
- local economic downturn
Nayan Gaurav
Tuesday, April 23, 2019

25. Partnership with a global integrator of logistics
Pro
- customer friendly
-in country knowledge
- true information system integration
- Uniform standards
Con
- limited use
- less control
Nayan Gaurav
Tuesday, April 23, 2019

26. Example-
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Tuesday, April 23, 2019

27. GSCM at Digital Equipment Corp.
HISTORY
1957: Founded by Ken Olsen
1961: Started Construction of first computer PDP-1
1978: Took Over the majority of minicomputer market
1980: Second Largest Computer company in the world
1990: DEC suddenly found its sales faltering
1998: DEC was sold to Compaq
2002: Compaq was taken over by HP
2003: Digital Global Soft is a well respected IT service company in India. Earlier it was 51% subsidiary of DEC
Nayan Gaurav
Tuesday, April 23, 2019

28. Digital equipment corporation
Implemented a global supply chain model and
Reduced plant from 33 to 12
Manufacturing cost decreased by $500 million
Logistic cost decreased by more than $300 million
Reduced services facility 34 to 17
Annual cost reduction of more than $80 million
Nayan Gaurav
Tuesday, April 23, 2019

29. Physical asset reduced to $34 million Inventory reduced by $74 million
Increased unit reduction by 500 percent
Increased revenue
Five times more computers were sold.
Nayan Gaurav
Tuesday, April 23, 2019

30. Summary of Global supply chains
Advantage include reduced cost, delivery performance, inventory reduction, forecast accuracy, cycle time, productivity, capacity, service, international connection
Overcome a variety of international obstacles.
Selecting and implementing a global supply chain model is effective when combined with flexibility.
Nayan Gaurav
Tuesday, April 23, 2019

31. THANK YOU ALL FOR LISTENING
Nayan Gaurav
Tuesday, April 23, 2019