DEFINITION, OBJECTIVES, ADVANTAGES, DISADVANTAGES, FACTORS, AND THE KEY ACTIVITIES INVOLVED IN THE GSCM.

1. GLOBAL SUPPLY CHAIN
MANAGEMENT
ANGAD SINGH
35115103918
MBA MOR (MIB)

2. CONTENTS
 Definition
 Objective of GSCM
 Advantages of GSCM
 Disadvantages of GSCM
 Factors of GSCM
 Key Activities in GSCM

3. DEFINITION
 Global Supply Chain Management (GSCM) is defined as the
distribution of goods and services throughout a trans-national
companies global network to maximize profit and minimize waste.
 Global supply-chain management has six main areas of
concentration:
1. Logistics management
2. Competitor orientation
3. Customer orientation
4. Supply-chain coordination
5. Supply management,
6. Operations management

4. OBJECTIVE OF GSCM
 International manufacturing sources—whether company-
owned or external suppliers—have in recent years been
sought out by managers because of reduced cost, increased
revenues, and improved reliability.
 Manufacturers typically set up foreign factories to benefit
from tariff and trade concessions, low cost direct labor,
capital subsidies, and reduced logistics costs in foreign
markets

5. ADVANTAGES OF GSCM
 Diversified business and trading
 Lower supply chain costs
 Reduced cycle time
 Competitive advantage
 Untapped markets
 Enhance speed and efficiency
 Increase sale & profit
 It allows businesses to reduce dependence on their local and national
economies.

6. DISADVANTAGES OF GSCM
 The biggest disadvantage of global supply chain management is the
heavy investment of time, money, and resources needed to
implement.
 Inefficient and undersized transportation and distribution systems
 Market instability
 Not only do companies have to strongly consider price and quality,
but they also have to make sure that all the organizations are willing
to cooperate to benefit the group.

7. FACTORS OF GSCM
 Costs
1. Local labor rates / International freight tariffs
2. Currency exchange rates
 Customs Duty
1. Duty rates differ by commodity and level of assembly
2. Impact of GATT/WTO: Changes over time
 Export Regulations & Local Content
1. Denied parties list / Export licenses
2. Local content requirement for government purchases

8.  Time
1. Lead time /Cycle time /Transit time /Customs clearance
 Taxes on Corporate Income
1. Tax havens and not havens
2. Make vs. buy effect

9. KEY ACTIVITIES OF GSCM
 Customer Relationship Management
Creates a structure for developing and maintaining relationships with
customers. Individual customers or groups are identified, based on their value
over time, and their loyalty can be enhanced by providing tailored products
and services.
 Supplier Relationship Management
Defines how a company interacts with its suppliers. As in the case of
customer relationship management, a company will form close relationships
with some of its suppliers, while others are less closely cultivated. Good
supplier relationship management involves devising the right PSAs and
managing them well, so that the company and its suppliers continue to benefit
from the most favourable trading arrangements.

10.  Customer Service Management
Operates at the customer interface. It provides the key point of contact for
administering the PSA and can give the customer information on orders,
shipping dates and product availability. SYSPRO ERP manufacturing and
logistics modules supply the data required by customer service management.
 Demand Management
Allows a company to be proactive in matching supply to demand. The process
includes forecasting and synchronization of supply and demand, in order to
increase flexibility and reduce demand variability. The process should employ
customer intelligence, historical sales information and planned marketing
efforts to forecast and influence demand.

11.  Manufacturing Flow Management
Includes all the activities necessary to move goods through production and to
obtain, implement and manage manufacturing flexibility in the supply chain.
Manufacturing flexibility reflects the ability to make a wide variety of
products at an appropriate rate and at lowest possible cost.
 Product Development and Commercialisation
Provides the structure for developing and bringing products to market in
unison with customers and suppliers. The product development and
commercialisation process team must coordinate with customer relationship
management to identify customer articulated and unarticulated needs; select
materials and suppliers in conjunction with the supplier relationship
management process; and develop production technology in manufacturing
flow to manufacture and integrate into the best supply chain flow for a given
product/market combination.

12. THANK
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