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Lecture Supply chain management: A global perspective – Chapter 12: Global supply chain management

Chapter 12 - Global supply chain management. The main contents of the chapter consist of the following: Global supply chain management, global market challenges, global infrastructure design, cost considerations, political and economic factors. | Chapter 12 Global Supply Chain Management 12-1 Lecture Outline 12-2 Global Supply Chain Management Global Market Challenges Global Infrastructure Design Cost Considerations Political and Economic Factors Copyright 2011 John Wiley & Sons, Inc. The Global Environment 12-3 Copyright 2011 John Wiley & Sons, Inc. Rapid growth of globalization and international trade are a result of: Advances in Transportation Advances in Technology Rise in Personal Income Increased Globalization 12-4 Copyright 2011 John Wiley & Sons, Inc. The global trend impacts: Consumers: greater access to a variety of goods competitive prices Supply Chain Companies accelerated competition requires: strategy to compete in new markets another strategy to protect local market from foreign competition Environmental Factors 12-5 Copyright 2011 John Wiley & Sons, Inc. Global Supply Chain Opportunities Large market Economies of scale in production and distribution Lower select costs labor supply Better ability to target . | Chapter 12 Global Supply Chain Management 12-1 Lecture Outline 12-2 Global Supply Chain Management Global Market Challenges Global Infrastructure Design Cost Considerations Political and Economic Factors Copyright 2011 John Wiley & Sons, Inc. The Global Environment 12-3 Copyright 2011 John Wiley & Sons, Inc. Rapid growth of globalization and international trade are a result of: Advances in Transportation Advances in Technology Rise in Personal Income Increased Globalization 12-4 Copyright 2011 John Wiley & Sons, Inc. The global trend impacts: Consumers: greater access to a variety of goods competitive prices Supply Chain Companies accelerated competition requires: strategy to compete in new markets another strategy to protect local market from foreign competition Environmental Factors 12-5 Copyright 2011 John Wiley & Sons, Inc. Global Supply Chain Opportunities Large market Economies of scale in production and distribution Lower select costs labor supply Better ability to target markets Leverage good ideas quickly and efficiently 12-6 Copyright 2011 John Wiley & Sons, Inc. Global Supply Chain Barriers Longer and more varied lead time Political risk and instability Overall cost transportation tariffs Infrastructure access facilities transportation Exchange rate risks 12-7 Copyright 2011 John Wiley & Sons, Inc. Factors Impacting Global Supply Chains 12-8 Copyright 2011 John Wiley & Sons, Inc. Factors Impacting Global Supply Chains Continued Market and Competition customer preferences may be unique consider competition Cost often reason for going global consider added logistical and transportation costs, differential productivity, costs of quality Infrastructure lack of infrastructure in developing countries 12-9 Copyright 2011 John Wiley & Sons, Inc. Factors Impacting Global Supply Chains Continued Technology enables global communication bar codes, GPS, EDI, RFID Politics and Economy currency fluctuations government regulation & political instability trade .