overview of global logistics & scm
DESCRIPTION
TRANSCRIPT
StudsPlanetLeading Education consultant in India www.StudsPlanet.com
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?