overview of global logistics & scm

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Overview of Global Logistics & Supply Chain Management

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

Global logistics• The design and management of a system that controls the

flow of materials into, through and out of the international corporation

2 major phases of movement of materials

1. Materials management2. Physical distributions

Major concepts in Global Logistics

1. The systems concept2. The total cost concept 3. The trade-off concept

Global Supply Chain Management

The activities involved in Supply chain arei. Purchasingii. Manufacturingiii.Logisticsiv.Distributionv. Transportation and vi.Marketing

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

Two main aspects of SCM

1. Supply chain as a cross-functional entity2. Supply chain as the integrator and coordinator of production

and logistics activities

Areas to be considered while moving from domestic to International supply chain1. Substantial geographical distances2. Forecasting problems/difficulties in foreign markets3. Fluctuations in exchange rates for different currencies4. Demand for great variety of products5. 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

Global Supply Chain

Inventory management

Physical distribution

transportation

Order placement

Corporation Suppliers Customers

Order processing

transportation

storage

Materials management

Inventory management

Physical distribution

Storage

Forward and reverse flows of information, products and funds

Managing Global LogisticsTwo major areas of Global Logistics arei. Global sourcing andii. Global distribution

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

Domestic vs International Logistics

i. Transport Modeii. Inventoriesiii. Agentsiv. Financial riskv. Cargo riskvi. Government agenciesvii. Administrationviii. Communicationix. Insurancex. Packagingxi. Payment

Value additions?