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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 :- 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
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
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
Nayan Gaurav   Sunday, April 05, 2009
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
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
Nayan Gaurav   Sunday, April 05, 2009

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global supply chain management..

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