2. We are moving towards a global economy.
One way of approaching that is to pull the covers
of your head.
Another is to say :- It may be more complicated-
but that’s the world I am going to live in.
I might as well be good at it.
Phil Condit- CEO of BOEING, November 1999
Nayan Gaurav Sunday, April 05, 2009
3. Global supply chain defined
Topic explanation
Surrounding issues
Real world example
Summary
Nayan Gaurav Sunday, April 05, 2009
4. An integrated process where several business
entities such as
suppliers, manufacturers, distributors, and
retailers work together to plan, co-ordinate
and control materials, parts and finished
goods from supplier to customers. One or
more of these business entities operate in
different countries.
Nayan Gaurav Sunday, April 05, 2009
7. Reduced total cost
Inventory cost reduction
Improve fulfillment cycle time
Reduced cycle time
increase forecast accuracy
Productivity increased
Improve capacity
Expand international connection
Increase intellectual capital
Delivery improvement
Nayan Gaurav Sunday, April 05, 2009
8. Supply chains in a global
environment must be able to
React to sudden changes in parts
availability, distribution, or shipping
channels, import duties, and currency rates
Use the latest computer and transmission
technologies to schedule and manage the
shipment of parts in and finished products
out
Staff with local specialists who handle
duties, freight, customs and political issues
Nayan Gaurav Sunday, April 05, 2009
9. Inefficient transportation and distribution
system.
Market instability
Language barrier
Customs
Political turmoil
Trade imbalance
Export surges and recessions
Nayan Gaurav Sunday, April 05, 2009
10. Join nation nation groups
Be innovative
Be flexible
Research
New technology
Vertically integrate
Form consortium
Nayan Gaurav Sunday, April 05, 2009
11. Facility location
Sourcing
distribution
Nayan Gaurav Sunday, April 05, 2009
13. Local labor rates
Local space cost
International freight tariffs
Currency exchange rate
Nayan Gaurav Sunday, April 05, 2009
14. Duty rates differ by commodity and level of
assembly
Duty drawback
Impact of GATT / WTO : changes over time
Transfer pricing
Duty suspension
Nayan Gaurav Sunday, April 05, 2009
15. Different markups by country
Tax havens and not havens
Make vs. Buy effect
Nayan Gaurav Sunday, April 05, 2009
16. Local content requirement for government
purchases
Content for preferential duty rates
Offset trade requirements
Nayan Gaurav Sunday, April 05, 2009
17. Export licenses
Denied parties list
Nayan Gaurav Sunday, April 05, 2009
18. Lead time
Cycle time
Transit time
Export license approval cycle
Customs clearance
Nayan Gaurav Sunday, April 05, 2009
19. The selection of strategic and
Positioning
structural approaches to guide global
operations
The establishment of what to do and
Integration
how to do it creatively
The achievement and retention of
Agility
global competitiveness and global
customer success
The internal and external monitoring
Measurement
of global operations
Sunday, April 05, 2009 Nayan Gaurav
21. Own and manage your own infrastructure
Use strategic alliances
Partner with an asset based third party
Partnership with a global integrator of
logistics services
Nayan Gaurav Sunday, April 05, 2009
22. Pro
-maximum control
Con
-heavy cost
Nayan Gaurav Sunday, April 05, 2009
23. Pro
- convenience
- large areas covered
Con
- unreliable alliance-prone
Nayan Gaurav Sunday, April 05, 2009
24. Pro
- operational standards
- uniform identity and marketing strength
- dedicated management structure
Cons
- ignorance of complex custom regulation
- lack of connections
- local economic downturn
Nayan Gaurav Sunday, April 05, 2009
25. Pro
- customer friendly
-in country knowledge
- true information system integration
- Uniform standards
Con
- limited use
- less control
Nayan Gaurav Sunday, April 05, 2009
27. GSCM at Digital Equipment Corp.
HISTORY
1957: Founded by Ken Olsen
1961: Started Construction of first computer PDP-1
1978: Took Over the majority of minicomputer market
1980: Second Largest Computer company in the world
1990: DEC suddenly found its sales faltering
1998: DEC was sold to Compaq
2002: Compaq was taken over by HP
2003: Digital Global Soft is a well respected IT service company in India.
Earlier it was 51% subsidiary of DEC
Nayan Gaurav Sunday, April 05, 2009
28. Implemented a global supply chain model and
Reduced plant from 33 to 12
Manufacturing cost decreased by $500
million
Logistic cost decreased by more than $300
million
Reduced services facility 34 to 17
Annual cost reduction of more than $80
million
Nayan Gaurav Sunday, April 05, 2009
29. Physical asset reduced to $34 million
Inventory reduced by $74 million
Increased unit reduction by 500 percent
Increased revenue
Five times more computers were sold.
Nayan Gaurav Sunday, April 05, 2009
30. Advantage include reduced cost, delivery
performance, inventory reduction, forecast
accuracy, cycle
time, productivity, capacity, service, internati
onal connection
Overcome a variety of international obstacles.
Selecting and implementing a global supply
chain model is effective when combined with
flexibility.
Nayan Gaurav Sunday, April 05, 2009
