Overview of global logistics & scm


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Overview of global logistics & scm

  1. 1. StudsPlanet Leading Education consultant in India www.StudsPlanet.com
  2. 2. Overview of Global Logistics & Supply Chain Management
  3. 3. Logistics management covers • Scheduling the arrival of materials and other inputs • Warehousing and inventory control • Strategic choice of international warehousing facilities • Scheduling production • Packaging, transportation and final delivery • Analysis of transportation costs
  4. 4. Global logistics • The design and management of a system that controls the flow of materials into, through and out of the international corporation
  5. 5. 2 major phases of movement of materials 1. Materials management 2. Physical distributions
  6. 6. Major concepts in Global Logistics 1. The systems concept 2. The total cost concept 3. The trade-off concept
  7. 7. Global Supply Chain Management The activities involved in Supply chain are i. Purchasing ii. Manufacturing iii.Logistics iv.Distribution v. Transportation and vi.Marketing
  8. 8. The International Supply Chain/Global Supply Chain • Covers both logistics and operations • Includes activities such as sourcing, procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distribution
  9. 9. Two main aspects of SCM 1. Supply chain as a cross-functional entity 2. Supply chain as the integrator and coordinator of production and logistics activities
  10. 10. Areas to be considered while moving from domestic to International supply chain1. Substantial geographical distances 2. Forecasting problems/difficulties in foreign markets 3. Fluctuations in exchange rates for different currencies 4. Demand for great variety of products 5. Inadequate infrastructures such as  labor skills,  availability of supply  Supplier quality  Lack of local process equipments and technologies  Inadequate transportation facilities and  Inadequate telecommunication facilities
  11. 11. Global Supply Chain Inventory management Physical distribution transportatio n Order placement CorporationSuppliers Customers Order processing transpo rtation storage Materials management Inventory management Physical distribution Storage Forward and reverse flows of information, products and funds
  12. 12. Managing Global Logistics Two major areas of Global Logistics are i. Global sourcing and ii. Global distribution
  13. 13. Components of Global Logistics • Demand forecasting • Purchasing • Requirement planning • Production planning • Manufacturing inventory • Warehousing • Material handling • Industrial packaging • Finished goods inventory • Distribution planning • Order processing • Transportation • Customer service • Strategic planning • Information technology • Marketing • Sales Materials management Logistics management Physical distribution Supply chain mgmt
  14. 14. Domestic vs International Logistics i. Transport Mode ii. Inventories iii. Agents iv. Financial risk v. Cargo risk vi. Government agencies vii. Administration viii. Communication ix. Insurance x. Packaging xi. Payment
  15. 15. Value additions?