Overview of Global Supply Chain Management

What is Supply Chain Management (SCM)?

SCM encompasses the planning & management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners including suppliers, intermediaries, third-party service provides, and customers internationally. In essence, SCM integrates supply and demand management within and across companies.

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

Global logistics

The activities involved in Supply chain are i. Purchasing ii. Manufacturing iii. Logistics iv. Distribution v. Transportation and vi. Marketing

Global Supply Chain Management

 Covers both logistics and operations Includes activities such as sourcing, procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distribution

The International Supply Chain/Global Supply Chain

1. Supply chain as a cross-functional entity 2. Supply chain as the integrator and coordinator of production and logistics activities

Two main aspects of SCM

1. 2. 3. 4. 5.

Substantial geographical distances Forecasting problems/difficulties in foreign markets Fluctuations in exchange rates for different currencies Demand for great variety of products Inadequate infrastructures such as labor skills, availability of supply Supplier quality Lack of local process equipments and technologies Inadequate transportation facilities and Inadequate telecommunication facilities

Areas to be considered while moving from domestic to International supply chain

Global Supply Chain

Suppliers Corporation Customers Order placement

Order processing

transpo rtation

Materials management

Physical distribution

transportatio n
Physical distribution

storage

Inventory management

Storage

Inventory management

Forward and reverse flows of information, products and funds