global supply chain management..

Presented by :- Nayan Gaurav (PG08052) Nayan Gaurav Sunday, April 05, 2009

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

Global supply chain defined  Topic explanation  Surrounding issues  Real world example  Summary  Nayan Gaurav Sunday, April 05, 2009

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

Nayan Gaurav Sunday, April 05, 2009

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

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

Inefficient transportation and distribution  system. Market instability  Language barrier  Customs  Political turmoil  Trade imbalance  Export surges and recessions  Nayan Gaurav Sunday, April 05, 2009

Join nation nation groups  Be innovative  Be flexible  Research  New technology  Vertically integrate  Form consortium  Nayan Gaurav Sunday, April 05, 2009

Facility location  Sourcing  distribution  Nayan Gaurav Sunday, April 05, 2009

Local labor rates  Local space cost  International freight tariffs  Currency exchange rate  Nayan Gaurav Sunday, April 05, 2009

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

Different markups by country  Tax havens and not havens  Make vs. Buy effect  Nayan Gaurav Sunday, April 05, 2009

Local content requirement for government  purchases Content for preferential duty rates  Offset trade requirements  Nayan Gaurav Sunday, April 05, 2009

Export licenses  Denied parties list  Nayan Gaurav Sunday, April 05, 2009

Lead time  Cycle time  Transit time  Export license approval cycle  Customs clearance  Nayan Gaurav Sunday, April 05, 2009

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

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

Pro  -maximum control Con  -heavy cost Nayan Gaurav Sunday, April 05, 2009

Pro  - convenience - large areas covered Con  - unreliable alliance-prone Nayan Gaurav Sunday, April 05, 2009

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

Pro  - customer friendly -in country knowledge - true information system integration - Uniform standards Con  - limited use - less control Nayan Gaurav Sunday, April 05, 2009

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

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

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

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

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