Overview of Global Logistics & Supply Chain Management

Logistics management coversScheduling the arrival of materials and other inputsWarehousing and inventory controlStrategic choice of international warehousing facilitiesScheduling productionPackaging, transportation and final deliveryAnalysis of transportation costs

Global logisticsThe 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 materialsMaterials managementPhysical distributions

Major concepts in Global LogisticsThe systems conceptThe total cost concept The trade-off concept

Global Supply Chain ManagementThe activities involved in Supply chain arePurchasingManufacturingLogisticsDistributionTransportation and Marketing

The International Supply Chain/Global Supply ChainCovers 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 SCMSupply chain as a cross-functional entitySupply chain as the integrator and coordinator of production and logistics activities

Areas to be considered while moving from domestic to International supply chainSubstantial geographical distancesForecasting problems/difficulties in foreign marketsFluctuations in exchange rates for different currenciesDemand for great variety of productsInadequate infrastructures such as labor skills, availability of supplySupplier qualityLack of local process equipments and technologiesInadequate transportation facilities and Inadequate telecommunication facilities

Global Supply ChainInventory managementPhysical distributiontransportationOrder placementCorporation Suppliers Customers Order processingtransportationstorageMaterials managementInventory managementPhysical distributionStorage Forward and reverse flows of information, products and funds

Managing Global LogisticsTwo major areas of Global Logistics areGlobal sourcing andGlobal distribution

Components of Global LogisticsDemand forecastingPurchasingRequirement planningProduction planningManufacturing inventoryWarehousingMaterial handlingIndustrial packagingFinished goods inventoryDistribution planningOrder processingTransportationCustomer serviceStrategic planningInformation technologyMarketingSales Materials managementLogistics managementPhysical distributionSupply chain mgmt

Domestic vs International LogisticsTransport ModeInventoriesAgentsFinancial riskCargo riskGovernment agenciesAdministrationCommunicationInsurancePackagingPayment

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