1. The Global Supply Chain Prepared by Becky Spinney Operations Management 345 May 9, 2002

2. A Brief Overview Global Supply ChainGlobal Supply Chain –Definition –Usefulness and practicality –Changes effecting global supply –Advantages/Disadvantages –Solutions –Brainstorming exercise

3. A Brief Overview –A real world example –Components/consideration in global supply chain design –Exercise/application –Summary –Bibliography

4. What is a Global Supply Chain? Definition-Definition- The facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.The facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.

5. What is a Global Supply Chain The global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end consumers.The global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end consumers. In the instance of global supply, the chain is extended to many different countries around the world.In the instance of global supply, the chain is extended to many different countries around the world.

6. Practicality and Usefulness Help companies compete all over the worldHelp companies compete all over the world Expand business operationsExpand business operations Offer new services and applications to meet global customers needsOffer new services and applications to meet global customers needs Give company a competitive advantageGive company a competitive advantage

7. Goal of the Global Supply Chain Prompt and reliable delivery of high-quality products and services at the least costPrompt and reliable delivery of high-quality products and services at the least cost To effectively meet rising customer expectationsTo effectively meet rising customer expectations

8. Recent changes effecting the global supply chain Internet and technological changeInternet and technological change Proliferation of trade agreementsProliferation of trade agreements

9. Recent changes effecting the global supply chain Falling Trade BarriersFalling Trade Barriers Increase in international trade groupsIncrease in international trade groups New MarketsNew Markets

10. Advantages Diversified business and tradingDiversified business and trading Lower supply chain costsLower supply chain costs Reduced cycle timeReduced cycle time Competitive advantageCompetitive advantage Untapped marketsUntapped markets Enhance speed and efficiencyEnhance speed and efficiency

11. Disadvantages and problems Member nations VS. Non member nationsMember nations VS. Non member nations Inefficient and undersized transportation and distribution systemsInefficient and undersized transportation and distribution systems Market instabilityMarket instability

12. Solutions Duty specialists and trade specialistsDuty specialists and trade specialists Vertically integratingVertically integrating Banding togetherBanding together Infrastructure improvementsInfrastructure improvements FlexibilityFlexibility

13. Brainstorming Exercise What are some reasons for extending your business and supply chain globally?What are some reasons for extending your business and supply chain globally?

14. Brainstorming Exercise Increase sales Satisfy shareholders Falling tariffs Increase in International Trade Increase in internet use throughout the world.

15. Components of a supply chain StructuresStructures ProcessesProcesses LinkagesLinkages

16. Issues/considerations when designing a global supply chain Strategic plan or ObjectiveStrategic plan or Objectivegoals UncertaintyUncertainty Communication and information flowCommunication and information flow Types and numbers of facilities and locationTypes and numbers of facilities and location

17. A Real World Example Stanford Global Supply Chain Management ForumStanford Global Supply Chain Management Forum Global Supply Chain AssociatesGlobal Supply Chain Associates

18. Exercise Make a list of pros and cons for developing a global supply chain.Make a list of pros and cons for developing a global supply chain. What are the different costs your company will encounter?What are the different costs your company will encounter? Do the benefits or global business outweigh the costs?Do the benefits or global business outweigh the costs?

19. Summary DefinitionDefinition Usefulness and practicality in today’s worldUsefulness and practicality in today’s world Advantages, disadvantages, and solutionsAdvantages, disadvantages, and solutions Components and considerationsComponents and considerations

20. Bibliiography Clarkson University. “Global Supply Chain Management.” www.clarkson.edu May 7, 2002. www.clarkson.edu Global Supply Chain Associates homepage. www.gsca.com May 7, 2002. www.gsca.com Macaulay Institute. “Why have these global supply chains developed.” www.mluri.sari.ad.uk/ May 8, 2002. www.mluri.sari.ad.uk/ Russell, Roberta and Taylor, Bernard. Operations Management. New Jersey: Prentce Hall, Inc. 2000. pp 373-86. Bernard. Operations Management. New Jersey: Prentce Hall, Inc. 2000. pp 373-86. The Forum. “The Stanford Global Supply Chain Management Forum.” www.stanford.edu/group/scforum/ May 8, 2002. www.stanford.edu/group/scforum/