Wat is global scm strategy Definition : An integrated process where several business entities such as suppliers, manufacturers, distributors,

and retailers work together to plan, coordinate and control materials, parts, and finished goods from suppliers to customers. One or more of these business entities operate in different countries. Goal of the Global Supply Chain Prompt and reliable delivery of high-quality products and services at the least cost To effectively meet rising customer Expectations Recent changes effecting the global supply chain Internet and technological change Proliferation of trade agreements Falling Trade Barriers Increase in international trade groups New Markets Advantages of Global Supply Chains[7] Reduced total costs Inventory reduction Improved fulfillment cycle time Reduce cycle time Increased forecast accuracy Productivity increase Improved capacity Expand international connections Increase intellectual assets Delivery improvement Diversified business and trading Competitive advantage Untapped markets Enhance speed and efficiency Potential Global Supply Chain Obstacles[7] Member nations VS. Non member nations Inefficient transportation and distribution systems Market instability Different languages Differences in Currencies Differences in Measurement Systems (metric versus decimal) Different Customs, beliefs and cultures Political turmoil Trade imbalances Export surges and recessions Greater distance Tax Policies Operational Threats Strategic Challenges Technological capabilities

Role of modeling in scm

A FUNDAMENTAL PROBLEM IN SCM IS PERFORMANCE EVALUATION. THREE APPROACHES CAN BE IDENTIFIED: ANALYTICAL METHODS, SUCH AS QUEUING THEORY, PHYSICAL EXPERIMENTATIONS, SUCH AS LAB PLATFORMS OR INDUSTRIAL PILOT IMPLEMENTATIONS MONTE-CARLO METHODS, SUCH AS SIMULATION OR EMULATION.

THE USE OF ANALYTICAL METHODS IS GENERALLY IMPRACTICAL BECAUSE MATHEMATICAL MODELS FOR REALISTIC CASES ARE USUALLY TOO COMPLEX TO BE SOLVED. OBVIOUSLY PHYSICAL EXPERIMENTATION SUFFERS FROM TECHNICAL- AND COST-RELATED LIMITATIONS. IN FACT, A MODELING AND SIMULATION APPROACH IS THE ONLY PRACTICAL RECOURSE FOR EXPLORING PERFORMANCE OF THE LARGE-SCALE SITUATIONS THAT EXIST IN REALITY. FURTHERMORE, THE MODELING AND SIMULATION APPROACH FACILITATES THE DESIGN OF THE SUPPLY CHAIN AND, AS WELL, THE EVALUATION OF ITS MANAGEMENT PRIOR TO IMPLEMENTATION. THE ABILITY TO CARRY OUT WHAT-IF ANALYSIS THAT LEAD TO A BEST CONFIGURATION FURTHER STRENGTHENS THE CASE FOR THE APPROACH.

WHAT IS LOGISTIC MGMT, ROLE IN SCM EVERY COMPANY DREAMS OF ACHIEVING THE SEVEN RS: DELIVERING THE RIGHT PRODUCT, IN THE RIGHT QUANTITY, IN THE RIGHT CONDITION, AT THE RIGHT PLACE, AT THE RIGHT TIME, TO THE RIGHT CUSTOMER, AT THE RIGHT COST

IN THE CURRENT HIGHLY CHANGING BUSINESS ENVIRONMENT, THERE ARE: HIGH UNCERTAINITY RAPID CHANGES DEMANDS FOR BETTER QUALTY PRODUCTS AT LOWER COSTS AT SHORTER LEAD TIMES BETTER PRODUCT LIFE CYCLE

GLOBALISATION OF MARKETS FORMATION OF TRADE BLOCKS SHIFTING OF MANUFACTURING BASES TO AREAS WITH LOWER LABOUR COSTS GLOBAL SOURCING OF SUPPLIES IN THE CURRENT HIGHLY CHANGING BUSINESS ENVIRONMENT, THERE ARE:

HIGH UNCERTAINITY RAPID CHANGES DEMANDS FOR BETTER QUALTY PRODUCTS AT LOWER COSTS AT SHORTER LEAD TIMES BETTER PRODUCT LIFE CYCLE GLOBALISATION OF MARKETS FORMATION OF TRADE BLOCKS SHIFTING OF MANUFACTURING BASES TO AREAS WITH LOWER LABOUR COSTS GLOBAL SOURCING OF SUPPLIES ROLE IN SCM DEFINITION:LOGISTICS IS THAT PART OF THE SUPPLY CHAIN PROCESS THAT PLANS, IMPLEMENTS, ANALYSES AND CONTROLS THE EFFICIENT, COST-EFFECTIVE FLOW AND STORAGE OF GOODS, SERVICES, AND RELATED INFORMATION FROM THE POINT OF ORIGIN TO THE POINT OF CONSUMPTION IN ORDER TO MEET CUSTOMERS REQUIREMENTS. A PROFESSIONAL WORKING IN THE FIELD OF LOGISTICS MANAGEMENT IS CALLED A LOGISTICIAN. THE MAIN AIM OF MODERN BUSINESS OR A COMPANY MANUFACTURING AND SELLING GOODS TO MEET THE CUSTOMER NEEDS IS TO MAXIMISE THE RETURN ON INVESTMENT, BETTER KNOWN AS ROI WITH SERVICE-COST PERFORMANCE AS GOOD AS OR BETTER THAN THE COMPETITOR.

OR IN OTHER WORDS SATISFYING THE CUSTOMER NEEDS AT LEAST COST AND MAXIMISING THE ROI

3PL A THIRD PARTY LOGISTICS PROVIDER (3PL) IS A FIRM WHICH PROVIDES SERVICES TO ITS CUSTOMERS OF OUTSOURCED (OR THIRD PARTY) LOGISTICS SERVICES FOR PART OR ALL OF THEIR SUPPLY CHAIN MANAGEMENT FUNCTIONS. THEY TYPICALLY SPECIALISE IN AN INTEGRATED OPERATION, WAREHOUSING AND TRANSPORTATION WHICH CAN BE SCALED AND CUSTOMISED TO CUSTOMER NEEDS BASED ON THE MARKET CONDITIONS AND DEMANDS AND DELIVERY SERVICE REQUIREMENTS OF THEIR PRODUCTS AND MATERIALS.

ACCORDING TO COUNCIL OF SUPPLY CHAIN MANGEMENT PROFESSIONALS, 3PL IS DEFINED AS A FIRM (THAT) PROVIDES MULTIPLE LOGISTICS SERVICES FOR USE BY CUSTOMERS. PREFERABLY THESE SERVICES ARE INTEGRATED OR BUNDLED TOGETHER BY THE PROVIDER. AMONG THE SERVICES 3PLS PROVIDE ARE TRANSPORTATION,WAREHOUSING,CROSS-DOCKING, INVENTORY MANAGEMENT, PACKAGING AND FREIGHT FORWARDING. TYPES OF 3PL PROVIDERS. STANDARD 3PL PROVIDER-THEY PROVIDE THE MOST BASIC FUNCTIONS OF LOGISTICSPICK AND PACK, WAREHOUSING AND DISTRIBUTION (BUSINESS). FOR MOST OF THEM, THE 3PL FUNCTION IS NOT THEIR MAIN ACTIVITY. SERVICE DEVELOPER: THIS TYPE OF 3PL PROVIDER OFFERS THEIR CUSTOMERS ADVANCED VALUE-ADDED SERVICES SUCH AS TRACKING AND TRACING, CROSSDOCKING, SPECIFIC PACKAGING, OR PROVIDING A UNIQUE SECURITY SYSTEM. A STRONG IT SYSTEM AND A FOCUS ON ECONOMIES OF SCALE AND SCOPE WILL ENABLE THIS TYPE OF PROVIDER TO PERFORM SUCH TYPE OF TASKS. CUSTOMER ADOPTER: THIS TYPE OF PROVIDER COMES IN AT THE REQUEST OF THE CUSTOMER AND ESSENTIALLY TAKES OVER THE COMPLETE CONTROL OF THE COMPANYS LOGISTICS ACTIVITIES. THIS PROVIDER IMPROVES THE LOGISTICS DRAMATICALLY BUT DOES NOT INTRODUCE ANY NEW SERVICE.THE CUSTOMER BASE FOR THIS TYPE OF PROVIDER IS QUITE SMALL. 4PL OTHERWISE KNOWN AS 4PL DEFINITION ARRANGEMENT IN WHICH A FIRM CONTRACTS OUT (OUTSOURCES) ITS LOGISTICAL OPERATIONS TO TWO OR MORE SPECIALIST FIRMS (THIRD PARTY LOGISTICS) AND HIRES ANOTHER SPECIALIST FIRM (THE FOURTH PARTY) TO COORDINATE THE ACTIVITIES OF THE THIRD PARTIES.

THE TERM "4PL" WAS ACTUALLY COINED BY THE CONSULTING GROUP ACCENTURE. IN FACT, THEY ALSO HOLD THE TRADEMARK TO THE NAME 4PL. ACCENTURE DEFINES A 4PL IN THE FOLLOWING MANNER: "A 4PL IS AN INTEGRATOR THAT ASSEMBLES THE RESOURCES, CAPABILITIES, AND TECHNOLOGY OF ITS OWN ORGANIZATION AND OTHER ORGANIZATIONS TO DESIGN, BUILD AND RUN COMPREHENSIVE SUPPLY CHAIN SOLUTIONS." THE TERM 4PL IS SOMETHING THAT EVERY ORGANIZATION HAS THEIR OWN INTERPRETATION OF AND IDEAS ON WHAT EXACTLY A 4PL SHOULD OFFER. TO ADD MORE COMPLEXITY TO THE INTERPRETATION, THE FOLLOWING GROUPS OF SERVICE PROVIDERS ACTUALLY PROVIDE "4PL TYPE" SERVICES:

CONSULTANTS,IT SERVICE PROVIDERS, E MARKET PLACES,FINANCIAL INSTITUTIONS, PRIVATE INSTITUTIONS AND SERVICE PROVIDERS WHO TRADITIONALLY PROVIDE 3PL SERVICES. A TRUE 4PL ORGANIZATION WOULD THEN BUILD A SET OF ACTIVITIES FOCUSED AROUND A SPECIFIC SET OF SUPPLY CHAIN INITIATIVES AND GOALS, GENERALLY WITH THE FOLLOWING ATTRIBUTES:

4PL COMMON SERVICES (INVOICE MANAGEMENT, CALL CENTERS, WAREHOUSE/DISTRIBUTION FACILITIES, ETC.) IMPLEMENTATION CENTER (THE BUSINESS PROCESS ANALYSIS/SCOPING, AND DEVELOPMENT OF ALL ACTIVITIES INTO AN OPEN SYSTEMS FRAMEWORK) PRODUCT/SKILL CENTERS (SUPPLY CHAIN ENGINEERING) IT SYSTEM CENTER (THE PURE IT SELECTION FOR DESIGN AND IMPLEMENTATION/CONNECTIVITY) 4PL BACK OFFICE (ADMINISTRATION, QUALITY, FINANCE, LEGAL, ETC.)

SITTING ABOVE THESE FUNCTIONS WOULD BE A CONTROLLING INTERFACE, MONITORED BY THE HIRED 4PL PARTY. THIS GROUP WOULD MANAGE ALL THE "BLOCKING & TACKLING ISSUES" RELATED TO DAILY BUSINESS. THE CONTROLLING INTERFACE WOULD PROVIDE THE CUSTOMER-FACING VISIBILITY, CONTROL, KPI/METRICS MANAGEMENT, REPORTING, DAILY PROBLEM SOLVING, ETC. ADDITIONALLY, SURROUNDING THESE ACTIVITY SETS WOULD BE THE FOLLOWING: KNOWLEDGE TRANSFER, BUSINESS SUPPORT AND FUNCTIONAL SUPPORT.

SO, TO GIVE YOU A VISUAL FIELD, PICTURE A DARTBOARD. FROM THE CENTER OUTWARD, THERE WOULD BE A SERIES OF CONCENTRIC CIRCLES. IN THE CENTER WOULD BE THE 4PL. THE NEXT OUTER CIRCLE WOULD BE THE STRATEGIC PARTNERS. THE NEXT OUTER CIRCLE WOULD BE THE PREFERRED SERVICE PROVIDERS, FOLLOWING BY THE LARGEST OUTWARD CIRCLE WHICH COVERS THE PROJECT PARTNERS. 3 VS 4 3PL PROVIDERS PROVIDE LOGISTICS SERVICES WITH THEIR OWN ASSETS. FOR EXAMPLE, A DISTRIBUTION SERVICE PROVIDER WHICH USES ITS OWN RESOURCES, E.G. WORKERS, TO PACK FINAL PRODUCTS FOR DISTRIBUTING TO DIFFERENT MARKETS AS PER CUSTOMER'S REQUEST IS SEEN AS A 3PL PROVIDER. 4PL PROVIDERS PROVIDE BROADER LOGISTICS/SUPPLY CHAIN SERVICES. THEY ASSEMBLE THE RESOURCES, CAPABILITIES AND TECHNOLOGY OF THEIR OWN ORGANIZATIONS (I.E. THEIR RESOURCES) AND OTHER ORGANIZATIONS (E.G. THROUGH AGREEMENTS) TO DESIGN, BUILD UP AND RUN MORE COMPREHENSIVE SUPPLY CHAINS. ONE CAN INTERPRET THAT 4PL DEAL WITH BUSINESS PROCESS AND LINKAGES AS WELL AS INDIVIDUAL ACTIVITIES. NOT ALL OF THE SERVICES PROVIDED BY 4PL PROVIDERS ARE OWNED BY THEMSELVES.