Overview of Global Logistics & Supply Chain Management

Scheduling

the arrival of materials and other inputs Warehousing and inventory control Strategic choice of international warehousing facilities Scheduling production Packaging, transportation and final delivery Analysis of transportation costs

Logistics management covers

The

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

Global logistics

1. 2.

Materials management Physical distributions

2 major phases of movement of materials

1. 2. 3.

The systems concept The total cost concept The trade-off concept

Major concepts in 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. 2.

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

Two main aspects of SCM

1. 2. 3. 4. 5.

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

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

Global Supply Chain

Suppliers
Order processi ng

Corporation

Customers Order placement

transp ortati on storag e

Materials manageme nt Inventory managem ent

Physical distribution

transportat ion Physical distribution

Storage

Inventory manageme nt

Forward and reverse flows of information, products and funds

Two

major areas of Global Logistics are i. Global sourcing and ii.Global distribution

Managing Global Logistics

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

Supply chain mgmt

Components of Global Logistics

i. ii. iii. iv. v. vi. vii. viii. ix. x. xi.

Transport Mode Inventories Agents Financial risk Cargo risk Government agencies Administration Communication Insurance Packaging Payment

Domestic vs International Logistics

Value additions?