Managing Global Supply Chain

Management

BY : NARINDER KUMAR (31864)

 What is a Supply Chain?

•
Supply chains are linkages of partially discrete,

yet interdependent entities that collectively

transform raw materials into finished products.

A. . . . . . . . . . . . . . . End Customer
Network of Relationships

Finland
Sweden Germany

Denmark
Norway Netherlands
Iceland
 Types of International
Sourcing Strategy
Sourcing

Intra-Firm Sourcing Outsourcing

Domestic International Domestic International

Domestic In-House Sourcing Offshore Subsidiary Sourcing Domestic Purchasing Arrangement Offshore Outsourcing

A company procures A company procures A company buys major A company buys major
major components in- major components from components from components from
house by procuring them its foreign subsidiary independent suppliers at independent suppliers
domestically home internationally

Source: Kotabe (2000)

 Global Supply
Chain Organization
• A supply chain organization uses
resources from international
participants to accomplish shared
and independent goals of its
members.
 Risk Management in Global Supply Chain

The supply chain arguably faces more risk than other

areas of the company due to its global nature and its
systemic impact on the firm’s financial performance.
Competencies Needed for
Efficient Global SCM
Positioning

Integration

Agility

Measurement

Source: Michigan State University (1995)

 Global SCM Factors
• Costs
– Local labor rates
– International freight tariffs
– Currency exchange rates

• Customs Duty
– Duty rates differ by commodity and level of assembly

Source: Global Supply Chain Associates (GSCA) 1999

 Global SCM
Factors Continued
• Export Regulations
• Denied parties list
• Export licenses

• Time
• Lead time
• Cycle time
• Transit time
• Export license approval cycle
• Customs clearance