overview of global logistics & scm
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Overview of Global Overview of Global Logistics & Supply Chain Logistics & Supply Chain
ManagementManagement
Logistics management coversLogistics management covers
Scheduling the arrival of materials and other inputs
Warehousing and inventory controlStrategic choice of international
warehousing facilitiesScheduling productionPackaging, transportation and final
deliveryAnalysis of transportation costs
Global logisticsGlobal 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 2 major phases of movement of materialsmaterials
1. Materials management2. Physical distributions
Major concepts in Global LogisticsMajor concepts in Global Logistics
1. The systems concept2. The total cost concept 3. The trade-off concept
Global Supply Chain ManagementGlobal Supply Chain Management
The activities involved in Supply chain arei. Purchasingii.Manufacturingiii.Logisticsiv.Distributionv.Transportation and vi.Marketing
The International Supply The International Supply Chain/Global Supply ChainChain/Global Supply Chain
Covers both logistics and operationsIncludes activities such as sourcing,
procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distribution
Two main aspects of SCMTwo 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 Areas to be considered while moving from domestic to moving from domestic to International supply chainInternational supply chain
1. 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 ChainGlobal Supply Chain
Inventory manageme
nt
Physical distribution
transportation
Order placement
Corporation Suppliers Customers
Order processi
ng
transportati
on
storage
Materials manageme
nt
Inventory managem
ent
Physical distribution
Storage
Forward and reverse flows of information, products and funds
Managing Global LogisticsManaging Global Logistics
Two major areas of Global Logistics arei. Global sourcing andii.Global distribution
Components of Global LogisticsComponents 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 Domestic vs International LogisticsLogistics
i. Transport Modeii. Inventoriesiii. Agentsiv. Financial riskv. Cargo riskvi. Government agenciesvii. Administrationviii. Communicationix. Insurancex. Packagingxi. Payment
Value additions?Value additions?