Supply Chain Globalization

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The origins of supply chain globalization and its effect.

Business Education

Effects of Globalization & Risk Management Pushkar Bajpai Master of Science in Industrial Engineering State University of New York at Buffalo

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Source: http://www2.sims.berkeley.edu/academics/courses/is243

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AD680: Global Supply Chains Lecture 1: Introduction to Global Supply Chains Boston University Metropolitan College Fall 2019 1 1 Topics Supply Chain Background Definitions Manufacturing vs. Service Supply Chains Operations Management Background Manufacturing vs. Service Operations Push vs. Pull, Buffering and Forecasting 2 2 Definitions: Supply Chain A supply chain is the entire system that a firm uses to provide goods and services to its customers: Firm’s suppliers (raw material, component, etc) Firm’s own operating systems (manufacturing processes or service providers) Storage systems (where materials and product are held) Distribution systems (trucking, shipping etc) Customers (may include retailers or consumers – any entity receiving output from a business process is called a customer.) 3 3 Definitions: Manufacturing vs. Service A first classification of a supply chain is either a manufacturing or service supply chain: Distinguishing characteristic: Tangible vs. intangible products Examples of service supply chains: Functions that provide services internally such as information technology, human resources, and marketing External customers include those found in healthcare (radiology), banking (call center). 4 4 Definitions: Members of a Supply Chain A supply chain consists of “members” which may be Departments, divisions Suppliers, vendors Partners, or Any other entity that plays a role in delivering products or services. These members are called “suppliers” A member of a manufacturing supply chain would generally be classified in a hierarchical structure called “tiers” Tier 1 supplier provides goods to the firm directly Tier 2 supplier provides goods to Tier 1 suppliers Tier 3 supplier provides goods to Tier 2 suppliers. 5 5 Definition: Outsourcing vs. Offshoring When a supplier is not owned by the firm, the work performed is said to be outsourced. Outsourced entities may physically be located within the firm itself: Food services (e.g., the firm’s cafeteria) Information technology (e.g., contract workers) Security (e.g, video system monitoring) When a facility is located in another country, the work performed is said to be offshored. 6 6 Definition: Global Supply Chains A global supply chain is one in which some work is done at an international location. Examples of global supply chains: Many call centers are outsourced and often offshored to low-wage countries. Even small firms operate outsourced (and offshored) supply chains -- a florist in the US may purchase tulips from a supplier in The Netherlands and roses from a supplier in Ecuador. 7 7 Suppliers (e.g., foil, cardboard) Raw Material Suppliers (e.g., multiple vendors) ABS plastic Logistics (land) Logistics (air) Packing (Mexico) Logistics (sea) Small Customer Large Customer (e.g., Wal-Mart) Consumers Plastics Molding (E. Europe) A Global (Manufacturing) Supply Chain Warehouse 8 8 ABS Plastic – t ...

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In Kenya, supply chain resilience is a relatively recent area of supply chain research that focuses on companies' ability to withstand disruptions. Manufacturing firms would be able to survive delays and continuously change their supply chains to satisfy the changing requirements and desires of their customers, shareholders, and other stakeholders thanks to the supply chain's resilience. The study's main goal was to determine was to find out the effect of supply chain resilience strategies on operational performance of Manufacturing firms in Nairobi city county, Kenya with specific objective of the study was to be find out the role of Multisourcing, Near shoring, product harmonization and Inventory management strategies on operational performance of Manufacturing firms in Nairobi city county, Kenya. The study's participants were all workers of Kenyan manufacturing firms in Nairobi city county, Kenya. The study's target population was all 454 manufacturing companies in Nairobi and its environs, drawn from 12 main manufacturing subsectors. The study's sample size was 189 respondents, who were selected using a simple stratified random sampling technique. To achieve this, the study was adopted cross sectional survey design. The researcher used questionnaires to collect data from the respondents. Descriptive and inferential statistics was applied in analyzing the data using SPSS Version 23 software. This study tested the null hypotheses that Multisourcing, near shoring, product harmonization and Inventory management strategies have no significant positive effect on operational performance of manufacturing firms in Nairobi city county, Kenya. The study found out all variables Multisourcing, near shoring, product harmonization and Inventory management strategies have positive significance on operational performance of Manufacturing to improve on the Manufacturing firms in Nairobi city county, Kenya. Firm’s operational performance, it was therefore recommended that firms to some extent should adopt some strategies like Multisourcing, Nearshoring, Product harmonization stand Inventory management. The study also recommends that manufacturing firms should advance on the supply chain risk management strategies as mitigation measures. Particularly, they should be careful on the subsequent dimensions of the supply chain risk management, equal risk sharing, quality planning, quality assurance and inspection in production. Enhancement of stated elements of risk management of the supply chain will lead to better supply chain risk mitigation, which will translate into improved performance.

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On August 29, 2005, Hurricane Katrina devastated New Orleans and the Gulf coast. Proctor & Gamble coffee manufacturing, with brands such as Folgers that get over half of their supply from sites in New Orleans, was severely impacted by the hurricane. Six months later, there were, as a P&G executive told the New York Times “still holes on the shelves” where P&G’s brands should be. Given your new insights from supply chain management, how would you solve/avoid a situation like this? Module 2 - Case Supply Chain Design Case Assignment Welcome to the second case study for this course. Assignment: Please read the article below (available through ProQuest), then in a 3-4 page paper discuss the article and integrated supply chains. Assignment Expectations The authors of the article do a pretty good job of explaining the concept but I would like you to tell me what they mean in your own words. What is an integrated supply chain? What are the key elements/challenges in an integrated supply chain? What are the specific benefits to firms that implement superior supply chain management?Write a 3-4 page paper, using the same format as module one. Integrated supply chains to be exploredAlan Johnson. Manufacturers' Monthly. Sydney: May 2007. It is attached Abstract: "The key challenge is to integrate supply chain capabilities to provide a seamless solution from potential design through to end delivery. End users are looking for a complete supply chain where there is single accountability and responsibility for delivery," said O'[Brien]. Module 2 - Background Supply Chain Design The following information will give you a good background on the importance of having a properly designed supply chain. Please review the information presented below to assist you with the assignments. I encourage you to surf the internet for more information on supply chain design. Required Materials You are not required to read all of these articles, but you may if you wish to choose to read several to further your knowledge. You are encouraged to surf the internet to gather additional resources in order to research your topic more thoroughly. Start off this module by reviewing the article below on Supply Chain Design. Beamon, B. M. (1998). Supply Chain Design and Analysis: Models and Methods. International Journal of Production Economics, 55(3), 281-294. Accessed August 10, 2009, at http://www.sclgme.org The ProQuestdata base provides the articles below concerning changing supply chains and supply chain security. Johnson, A., (2007). Integrated supply chains to be explored. Manufacturers' Monthly. Sydney. Available in the Trident Online Library. Rogers, D., Lockman, D., Schwerdt, G., O'Donnell, B., & Huff, R., (2004). Supply Chain Security. Material Handling Management, 59(2), 15-18. Available in the Trident Online Library. Supply Chain Design and Analysis: Models and Methods Benita M. Beamon University of Washington Industrial Engineering Box 352650 Seattle, WA 98195.

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Supply Chain Globalization

1. Effects of Globalization & Risk Management Pushkar Bajpai Master of Science in Industrial Engineering State University of New York at Buffalo

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4. Source: www.theprogressgroup.com/.../wp_images/fite1.gif

5. Source: http://csr2006.cadburyschweppes.com/........./sourcing2.gif

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8. Source: http://info.detnews.com/history/story/..............ry=business

9. Source: http://www2.sims.berkeley.edu/academics/courses/is243

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17. Source: Aberdeen Group, 2006

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Editor's Notes

Good Morning, I am Pushkar Bajpai. And my topic for presentation deals with Effects of Globalization and Interrelated risks on the Supply Chain.
I like this definition because as an industrial engineer I am used to think in terms of an objective function and the constraints associated with it. This definition compels me to apply tools of operations research and other related techniques to the “supply chain” to improve its effectiveness. Above all it provides me with an objective that has to be optimized and that objective is the “cost”.