Global Supply Chain - Lecture notes 1-10 PDF

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Sam Roscoe...

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Global Supply Chains

Lecture One Definition • Operations Management - Operations management focuses on decisions for the production and delivery of the firm’s products and services. - Decisions: Process, quality, capacity, inventory, and supply chain • Supply chain - Network of manufacturing and service operations that supply one another - From raw materials through production to the end consumer - Flows of materials, money, and information - Links operations across organizations What is Operations Management? • Operations Management (OM) is the activity of managing the resources which create and deliver services and products • The Operations function comprises all the activities necessary for the day-to-day fulfilment of customer requests. This includes sourcing services and products from suppliers and transporting them to customers

Global Supply Chains

The Transformation Process

The Four V’s

Five Key Performance Objectives

Global Supply Chains

Supply Chain Management • Series of activities that moves materials (suppliers, through operations to customers) • Each product or service will have its own supply chain (involve many organisations in processing, transportation, warehousing and retail) • Activities on the input side to the organisation (upstream or supply side -divided into tiers of suppliers) • Activities on the output side (downstream or demand side -divided into tiers of customers) • Separate supply chain for each product or service an organisation produces Structure: Supply network or supply web. Contingencies • Decisions related to process, quality, capacity, inventory and supply chain must account for: - upstream suppliers - downstream customers - other functions (marketing, finance) - support functions (HR, Info systems, accounting) - situations (supply disruption, seasonal demand peaks) - conditions (economy, changing customer preferences) - many other contingencies

Operations Strategy Process

Global Supply Chains

Examples of Important Strategic Decisions

Global Operations and Supply Chains • “Traditional” (multi-country, multi-strategy) versus “Global” (single-strategy) firm. • Characteristics of the “Global Corporation” differ from the traditional company. • Rethink the supply chain (product design, process design, location, workforce policies).

Global Supply Chains

Characteristics of ‘Global Corporations’ • Facilities located worldwide, not country by country. • Products & services can be shifted among countries. • Sourcing on a global basis. • Supply chain is global in nature. • Product design & process technology are global. • Products/service fit global tastes. • Demand is considered on worldwide basis. • Logistics & inventory control is on worldwide basis. Supply Chain Strategy • To achieve competitive advantage for entire supply chain, rather than individual entities. • Two supply chain strategies: - Imitative Products (e.g. commodities) Predictable demand Efficient, low-cost supply chain - Innovative Products (e.g. new technologies) Unpredictable demand Flexible, fast supply chain • Firms design supply chain for each product/service or group of products/services - Avoid “one size fits all” strategy.

Global Supply Chains

Global Supply Chains...