International supply chain management
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The presentation discusses international supply chain management (ISCM). ISCM involves distributing goods globally to maximize profit while minimizing waste. It focuses on managing supply chains for multinational companies. The presentation outlines advantages of ISCM like reduced costs and inventory, improved fulfillment times. It also discusses challenges like reacting to changes in international markets. Finally, it provides an example of how Digital Equipment Corporation improved its supply chain through ISCM.
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International supply chain management
- 1. INTERNATIONAL SUPPLY CHAIN MANAGEMENT Presented by :- Shekhar Jyoti Das 17-PGDM-ABPM-35 18 September 2018 Shekhar Jyoti Das 1
- 2. Presentation Overview ■ International supply chain defined ■ Topic explanation ■ Surrounding issues ■ Real world example ■ Summary 18 September 2018 Shekhar Jyoti Das 2
- 3. INTERNATIONAL SUPPLY CHAIN MANAGEMENT (ISCM) International SupplyChain Management is defined as the distribution of goods and services throughout a trans-national companies' global network to maximize profit and minimize waste. Essentially, International Supply chain-management is the same as supply-chain management, but it focuses on companies and organizations that are trans- national. 18 September 2018 Shekhar Jyoti Das 3
- 4. ADVANTAGES OF ISCM ■ 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 18 September 2018 Shekhar Jyoti Das 4
- 5. ISSUESWITH ISCM ■ 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 18 September 2018 Shekhar Jyoti Das 5
- 6. POTENTIAL OBSTACLESWITH ISCM ■ Inefficient transportation and distribution system. ■ Market instability ■ Language barrier ■ Customs ■ Political turmoil ■ Trade imbalance ■ Export surges and recessions 18 September 2018 Shekhar Jyoti Das 6
- 7. COMBATING OBSTACLESWITH ISCM ■ Join nation nation groups ■ Be innovative ■ Be flexible ■ Research ■ New technology ■ Vertically integrate ■ Form consortium 18 September 2018 Shekhar Jyoti Das 7
- 8. CLASSICAL LOGISTICS ISSUE ■ Facility location ■ Sourcing ■ distribution 18 September 2018 Shekhar Jyoti Das 8
- 9. INTERNATIONAL INFLUENCEON LOGISTICS ISSUE & OTHER FACTORS 18 September 2018 Shekhar Jyoti Das 9
- 10. COSTS ■ Local labor rates ■ Local space cost ■ International freight tariffs ■ Currency exchange rate 18 September 2018 Shekhar Jyoti Das 10
- 11. CUSTOM DUTY ■ Duty rates differ by commodity and level of assembly ■ Duty drawback ■ Impact of GATT /WTO : changes over time ■ Transfer pricing ■ Duty suspension 18 September 2018 Shekhar Jyoti Das 11
- 12. TAXES ON CORPORATE INCOME ■ Different markups by country ■ Tax havens and not havens ■ Make vs. Buy effect 18 September 2018 Shekhar Jyoti Das 12
- 13. OFFSETTRADE & LOCAL CONTENT ■ Local content requirement for government ■ purchases Content for preferential duty rates ■ Offset trade requirements 18 September 2018 Shekhar Jyoti Das 13
- 14. EXPORT REGULATION ■ Export licenses ■ Denied parties list 18 September 2018 Shekhar Jyoti Das 14
- 15. TIME ■ Lead time ■ Cycle time ■ Transit time ■ Export license approval cycle ■ Customs clearance 18 September 2018 Shekhar Jyoti Das 15
- 16. COMPETENCIES NEEDED FOR EFFECTIVE INTERNATIONAL SUPPLY CHAIN MANAGEMENT ■ Positioning -The selection of strategic and Positioning structural approaches to guide global operations ■ Integration -The establishment of what to do and Integration how to do it creatively ■ Agility -The achievement and retention of Agility global competitiveness and global customer success ■ Measurement -The internal and external monitoring of global operations 18 September 2018 Shekhar Jyoti Das 16
- 17. TYPES OF INTERNATIONAL SUPPLY CHAIN MANAGEMENT MODEL ■ Own and manage your own infrastructure ■ Use strategic alliances ■ Partner with an asset based third party ■ Partnership with a global integrator of logistics services 18 September 2018 Shekhar Jyoti Das 17
- 18. Own and manage your own infrastructure ■ Pro -maximum control ■ Con -heavy cost 18 September 2018 Shekhar Jyoti Das 18
- 19. Use StrategicAlliance ■ Pro - convenience - large areas covered ■ Con - unreliable alliance - prone 18 September 2018 Shekhar Jyoti Das 19
- 20. Partner with an asset based third party ■ Pro - operational standards - uniform identity and marketing strength - dedicated management structure ■ Cons - ignorance of complex custom regulation - lack of connections - local economic downturn 18 September 2018 Shekhar Jyoti Das 20
- 21. Partnership with a global integrator of logistics ■ Pro- Customer Friendly In country Knowledge True Information System Integration Uniform Standards ■ Con- Limited Use Less Control 18 September 2018 Shekhar Jyoti Das 21
- 22. EXAMPLE 18 September 2018 Shekhar Jyoti Das 22
- 23. ISCM at Digital Equipment Corporation 18 September 2018 Shekhar Jyoti Das 23 ■ History 1957 : Founded by Ken Olsen 1961 : Started Construction of First Computer PDP-1 1978 :Took over the majority of mini computer market 1980 : Second LargestComputer Company in the World 1990 : DEC Found its sales altering 1998 : DEC was sold to Compaq 2002: Compaq was taken over by HP 2003: DigitalGlobal Soft is aWell respected IT Service Company in India. Earlier it was 51% Subsidiary of DEC
- 24. DIGITAL EQUIPMENT CORPORATION ■ Implemented a International 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 more than $ 80 million 18 September 2018 Shekhar Jyoti Das 24
- 25. ■ Physical asset reduced to $ 34 million ■ Inventory reduced by $ 74 million ■ Increased unit reduction by 500% ■ Increased Revenue ■ Five times more computers were sold 18 September 2018 Shekhar Jyoti Das 25
- 26. Summary of International Supply Chains ■ Advantage include Reduced Cost, Delivery Performance, Inventory Reduction, Forecast Accuracy, cycle time, Productivity, Capacity, Service, InternationalConnection ■ Overcome a variety pf international obstacles ■ Selecting and implementing an International SupplyChain Model is effective when combined with flexibility 18 September 2018 Shekhar Jyoti Das 26
- 27. ThankYou All for Listening 18 September 2018 Shekhar Jyoti Das 27