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Global Supply Chain Management

By
B.Saiprakash MBA
What is Supply Chain Management (SCM)?
 According to the Council of SCM Professionals
definition:
SCM encompasses the planning & management of all
activities involved in sourcing and procurement,
conversion, and all logistics management activities.
Importantly, it also includes coordination and
collaboration with channel partners including suppliers,
intermediaries, third-party service provides, and
customers. In essence, SCM integrates supply and
demand management within and across companies.
Global Supply Chain
Suppliers

Corporation

Customers
Order
placement

Order
processing

transportati
on

Materials
management

storage

Inventory
management

Physical
distribution

transportation
Physical
distribution

Storage

Forward and reverse flows of information, products and funds

Inventory
management
Global Supply Chain Management
Activities
The activities involved in Supply chain are
i. Purchasing
ii. Manufacturing
iii. Logistics
iv. Distribution
v. Transportation and
vi. Marketing
Supply Chain Players
Simple Supply Chain
 Supplier
 Company/Factory
 Customer
Extended Supply Chain
 Supplier’s supplier
 Supplier
 Company/factory
 Customer
 Customer’s Customer
 Service Provider
Drivers of Supply Chain Fit
Efficiency

Responsiveness

Supply Chain Structure

Inventory

Transportation

Drivers

Facilities

Information
Bullwhip Effect
The Bullwhip Effect (or Whiplash Effect) is an observed phenomenon in forecast-driven
distribution channels. It refers to a trend of larger and larger swings in inventory in response to
changes in demand, as one looks at firms further back in the supply chain for a product.
International Logistics
Logistics Management is that part of Supply Chain
Management that plans, implements, and controls the
efficient, effective forward and reverse flow and storage of
goods, services and related information between the point of
origin and the point of consumption in order to meet
customers' requirements.
Three Concepts of Business
Logistics
Systems Concept
Total Cost Concept

Trade-off Concept

9
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Demand forecasting
Purchasing
Requirement planning
Production planning
Manufacturing inventory
Warehousing
Material handling
Industrial packaging
Finished goods inventory
Distribution planning
Order processing
Transportation
Customer service
Strategic planning
Information technology
Marketing
Sales

Materials
management

Logistics
management
Supply
chain
mgmt
Physical
distribution

Components of Global Logistics
global supply chain managment

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global supply chain managment