Overview of Global Overview of Global Logistics & Supply Chain Logistics & Supply Chain

ManagementManagement

Logistics management coversLogistics management covers

Scheduling the arrival of materials and other inputs

Warehousing and inventory controlStrategic choice of international

warehousing facilitiesScheduling productionPackaging, transportation and final

deliveryAnalysis of transportation costs

Global logisticsGlobal logistics

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

2 major phases of movement of 2 major phases of movement of materialsmaterials

1. Materials management2. Physical distributions

Major concepts in Global LogisticsMajor concepts in Global Logistics

1. The systems concept2. The total cost concept 3. The trade-off concept

Global Supply Chain ManagementGlobal Supply Chain Management

The activities involved in Supply chain arei. Purchasingii.Manufacturingiii.Logisticsiv.Distributionv.Transportation and vi.Marketing

The International Supply The International Supply Chain/Global Supply ChainChain/Global Supply Chain

Covers both logistics and operationsIncludes activities such as sourcing,

procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distribution

Two main aspects of SCMTwo main aspects of SCM

1. Supply chain as a cross-functional entity2. Supply chain as the integrator and

coordinator of production and logistics activities

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

1. Substantial geographical distances2. Forecasting problems/difficulties in foreign markets3. Fluctuations in exchange rates for different

currencies4. Demand for great variety of products5. 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

Global Supply ChainGlobal Supply Chain

Inventory manageme

nt

Physical distribution

transportation

Order placement

Corporation Suppliers Customers

Order processi

ng

transportati

on

storage

Materials manageme

nt

Inventory managem

ent

Physical distribution

Storage

Forward and reverse flows of information, products and funds

Managing Global LogisticsManaging Global Logistics

Two major areas of Global Logistics arei. Global sourcing andii.Global distribution

Components of Global LogisticsComponents of Global Logistics

Demand forecasting Purchasing Requirement planning Production planning Manufacturing inventory Warehousing Material handling Industrial packaging Finished goods inventory Distribution planning Order processing Transportation Customer service Strategic planning Information technology Marketing Sales

Materials management

Logistics management

Physical distribution

Supply chain mgmt

Domestic vs International Domestic vs International LogisticsLogistics

i. Transport Modeii. Inventoriesiii. Agentsiv. Financial riskv. Cargo riskvi. Government agenciesvii. Administrationviii. Communicationix. Insurancex. Packagingxi. Payment

Value additions?Value additions?