Global SCM is incomplete till it doesn't understand the Cultural Differences.

1. Global SCM and
Cultural influence
on SCM
Subtitle

2. What is Global Supply chain Management
• Supply Chain connects the functions
of inbound activities ( such as
purchasing) with outbound activities
(Such as logistics) so that
collectively transforms raw
materials into finished products.
• A global supply chain is made up of
the interrelated organizations,
resources and processes that create
and deliver products and services to
end customers. For global supply
chain it is extended around the
world.
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3. FORD Example
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4. Forces Driving global Supply chain Management
1. Some Facts’
- Domestic Consumption is 40% rest it
has to go out.
1. State of Art Markets/Marketers
Japan- Consumer Electronics
Germany- Machine tools
Israel- AI embedded
1. Skilled labour
2. RegionalTrade Agreement
3. Cultural influence
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Technology
Global Cost
PoliticalCultural
Global
Market

5. Areas to be considered while moving form Local to
Global
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1. Substantial Geographical distance
2. Forecasting problems/difficulties in foreign market
3. Fluctuation in exchange rates for different currencies
4. Demand for great variety of products
5. Inadequate infrastructure such as:-
i. Labor skills
ii. Availability of supply
iii. Suppliers quality
iv. Lack of local process equipment's and technologies
v. Inadequate transportation facilities

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7. Cultural Influence in
SCM

8. Beginning
• Manufacturing operations are relocated around the world,
the efficient movement of goods is becoming more and more
important.
• Logistics providers are responsible for the movement of
goods and face different cultural challenges in each region
that these goods move.
• People must realize and accept cultural differences to
develop strong working relationships.
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9. Cultural Characteristics -1
• An understanding of how different cultures view authority
(through a hierarchic or equality lens) can help establish the
most efficient protocols for making decisions and distributing
responsibility.
• hierarchical preference might assign specific decisions to
different levels in the organization, expecting feedback and
input to move in a predictable, differentiated way.
• Those in an egalitarian culture would prefer a consensus- or
committee-based method of making decisions.
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10. Cultural
Characteristics- 2
• Awareness of time preferences can help
create clarity around deadlines, work
cycles and completion targets.
• Those in a fixed-time culture might focus
on speed at the expense of a redundant
quality process.
• while those in a fluid-time culture see the
value in the ability to slow down a process
in order to spend more time analyzing an
issue.
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11. Cultural Difference Examples- Hofstede
• Hofstede Dimensions
• High Uncertainty Avoidance verses low Uncertainty
Avoidance are willing to tolerate high risk and
uncertainty.
• Long-term Orientation dimension- Low probability
investments are economically justified when
considering long term objectives
• Low Power Distance Verses high Power Distance
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12. Conclusion
• Appropriate cultural mindset and orientation could
enable companies to perform supply chain
management activities better than other companies.
• To be present one need to be CULTURALLY
PRESENT.
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