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BUILDING SCM COMPETENCYFOR
GLOBAL CHALLENGESDr V K Gupta
[email protected]
Mobile 9811039584
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World is flat
Developed and developing
Rich and poor
Haves and Have not's
Club of select nations or MNCs
Changed to
--- global village
---- digitally connected------ interdependent
--------- information revolution
-------- low entry barrier
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Time and DistanceCompetitive edge earlier
----------- losing relevance
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A majority of companies believe they are executing
Chineseoutsourcing strategies less effectively than the
competition
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CHALLENGESINGLOBALLOGISTICSEXECUTIONINCLUDE:
Sub-optimal sourcing results due to inadequate totalcost
data
High overhead costs to manage the global sourcing andlogistics
function
High inventories and lost sales as companies struggle tomatch
supply and demand in the long supply chain
High costs for expedited freight
High levels of inbound lead-time variability
Reactive rather than proactive logistics management
Disconnect between inbound international movementsand domestic
transportation operations
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Global Logistics and TradeManagement Requires Learning
the Rules of a New Game
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FOCUSAREASFORGLOBALSUPPLYCHAINS
Total Delivered Cost Management
Global Logistics Process Automation
End-to-End Visibility
Supplier Portals and ASN (Advance ShipNotices ) Capabilities
Total Product Identification and RegulatoryCompliance
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Dynamic Routing
Variability Management
Integrated International and Domestic Workflow
Integrated Planning and Execution Platform
Financial Supply Chain Management
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COMPETENCIESREQUIRED
Business Perspective - Global and Local World Economy and its
inter relationships
Political systems in countries you have interests in
International and local laws as applicable to your
business Technologies exiting and emerging and trends
Demographic shifts
Environment Analysis - PEST,
Immediate environment Industry analysis - Porters 5
forces analysis
Strategic thinking and ability Linking business goals with
Supply Chain function
goals
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Foresight recognizing global and local changesimpacting your
business
Internal Analysis SWOT
Risk Management Risk assessment and riskmitigation strategies ,
Currency risk and Hedging
Ability to align Cos Vision, Mission and Goals withSCM
Objectives and Strategies
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MANAGEMENT CYCLE FOR EFFECTIVE SCM
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SC Planning
Forecasting
Network design
Networking
Supplier selection, development and evaluation Efficient IT
backbone
Relationship management
Building Efficiency and Agility in SC design
Financial Supply Chain Fund Flow Management
Technology
Ability to understand and take advantage of Politicalinitiatives
Trade Agreements, Tariffs, Changes in taxstructure etc.
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COMPETENCIESREQUIRED
Cross culture management skills
Leadership and team building skills
Managing people
Motivational skills
Communication skills
Negotiation skills
Change Management - Ability to change strategieswith change in
external or internal environment
Execution Skills - Ability to focus on efficiency
whilemaintaining agility
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Never losing sight of triple bottom line Profit,environment and
people
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People impact
Social impact
Environmental impact
Work together to reduce environmental impacts ofthe supply
chain
Relationship management
3 Rs
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REFERENCES
http://www.businesslink.gov.uk accessed on April 19, 2012
http://media.treehugger.com accessed on April 19, 2012
The 10 Keys to Global Logistics
Excellencehttp://www.scdigest.com/assets/Reps/SCDigest_Global_Logistics_Excellence.pdf
accessed on April 19, 2012
Supply Chain 2006a Case Study; Supply Chain Digest, June1, 2006;
http://www.scdigest.com/assets/FirstThoughts/06-06-01.cfm
The Challenges in Chinese Procurement; McKinsey Quarterly,2006
Special Edition; http://www.mckinseyquarterly.com
Client Issues for Global Trade Management; Dwight
Klappich,Gartner Group; Sept. 12, 2005
Why are Enterprise Engines Running in Reverse?; Erik Keller,in
Manufacturing Business Technology; January,
2005;http://www.mbtmag.com/current_issues/2005/jan/col2.asp
http://www.meiji.ac.jp/cip/english/frontline/yamashita/index.htmlaccessed
on April 19, 2012
