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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 ...
Global supply chain defined

    Topic explanation

    Surrounding issues

    Real world example

    Summary





...
An integrated process where several business

    entities such as
    suppliers, manufacturers, distributors, and
    re...
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

    incr...
Supply chains in a global
     environment must be able to
 React to sudden changes in parts
  availability, distribution...
Inefficient transportation and distribution

    system.
    Market instability

    Language barrier

    Customs

  ...
Join nation nation groups

    Be innovative

    Be flexible

    Research

    New technology

    Vertically integ...
Facility location


    Sourcing


    distribution





                        Nayan Gaurav   Sunday, April 05, 2009
Nayan Gaurav   Sunday, April 05, 2009
Local labor rates


    Local space cost


    International freight tariffs


    Currency exchange rate





       ...
Duty rates differ by commodity and level of


    assembly
    Duty drawback


    Impact of GATT / WTO : changes over t...
Different markups by country


    Tax havens and not havens


    Make vs. Buy effect





                           ...
Local content requirement for government


    purchases
    Content for preferential duty rates


    Offset trade requ...
Export licenses


    Denied parties list





                          Nayan Gaurav   Sunday, April 05, 2009
Lead time


    Cycle time


    Transit time


    Export license approval cycle


    Customs clearance





      ...
The selection of strategic and
Positioning
                         structural approaches to guide global
                ...
Nayan Gaurav   Sunday, April 05, 2009
Own and manage your own infrastructure

    Use strategic alliances

    Partner with an asset based third party

    P...
Pro

    -maximum control

    Con

    -heavy cost




                       Nayan Gaurav   Sunday, April 05, 2009
Pro

    - convenience
    - large areas covered

    Con

    - unreliable alliance-prone




                         ...
Pro

    - operational standards
    - uniform identity and marketing strength
    - dedicated management structure

    ...
Pro

    - customer friendly
    -in country knowledge
    - true information system integration
    - Uniform standards
...
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
...
Implemented a global supply chain model and
 Reduced plant from 33 to 12
 Manufacturing cost decreased by $500
  million...
Physical asset reduced to $34 million


    Inventory reduced by $74 million


    Increased unit reduction by 500 perce...
Advantage include reduced cost, delivery

    performance, inventory reduction, forecast
    accuracy, cycle
    time, pr...
Nayan Gaurav   Sunday, April 05, 2009
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global supply chain management..

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Transcript of "global supply chain management.."

  1. 1. Presented by :- Nayan Gaurav (PG08052) Nayan Gaurav Sunday, April 05, 2009
  2. 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. 3. Global supply chain defined  Topic explanation  Surrounding issues  Real world example  Summary  Nayan Gaurav Sunday, April 05, 2009
  4. 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
  5. 5. Nayan Gaurav Sunday, April 05, 2009
  6. 6. Nayan Gaurav Sunday, April 05, 2009
  7. 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. 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. 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. 10. Join nation nation groups  Be innovative  Be flexible  Research  New technology  Vertically integrate  Form consortium  Nayan Gaurav Sunday, April 05, 2009
  11. 11. Facility location  Sourcing  distribution  Nayan Gaurav Sunday, April 05, 2009
  12. 12. Nayan Gaurav Sunday, April 05, 2009
  13. 13. Local labor rates  Local space cost  International freight tariffs  Currency exchange rate  Nayan Gaurav Sunday, April 05, 2009
  14. 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. 15. Different markups by country  Tax havens and not havens  Make vs. Buy effect  Nayan Gaurav Sunday, April 05, 2009
  16. 16. Local content requirement for government  purchases Content for preferential duty rates  Offset trade requirements  Nayan Gaurav Sunday, April 05, 2009
  17. 17. Export licenses  Denied parties list  Nayan Gaurav Sunday, April 05, 2009
  18. 18. Lead time  Cycle time  Transit time  Export license approval cycle  Customs clearance  Nayan Gaurav Sunday, April 05, 2009
  19. 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
  20. 20. Nayan Gaurav Sunday, April 05, 2009
  21. 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. 22. Pro  -maximum control Con  -heavy cost Nayan Gaurav Sunday, April 05, 2009
  23. 23. Pro  - convenience - large areas covered Con  - unreliable alliance-prone Nayan Gaurav Sunday, April 05, 2009
  24. 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. 25. Pro  - customer friendly -in country knowledge - true information system integration - Uniform standards Con  - limited use - less control Nayan Gaurav Sunday, April 05, 2009
  26. 26. Nayan Gaurav Sunday, April 05, 2009
  27. 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. 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. 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. 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
  31. 31. Nayan Gaurav Sunday, April 05, 2009

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