Global logistics is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost. | GLOBAL LOGISTICS MANAGEMENT LECTURE 8: GLOBAL LOGISTIC STRATEGIES Agenda 1 Definition of Global Logistics 2 Barriers to Global Logistic Operation 3 Basic conditions for GLO 4 Global business organization 5 Some specific problems with GLO 6 Strategic competencies needed for an efficient GLO 7 Strategies for Global Logistic Operation 8 Summary 1 Definition of Global Logistic Global logistics is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost 2 Barriers to Global Logistic Operation true global operations need so many resources that they are limited to very large companies customers in different countries may demand different types of products products may have features which mean that they are not suitable for global operations 2 Barriers to Global Logistic Operation global products of any kind are not viewed favourably | GLOBAL LOGISTICS MANAGEMENT LECTURE 8: GLOBAL LOGISTIC STRATEGIES Agenda 1 Definition of Global Logistics 2 Barriers to Global Logistic Operation 3 Basic conditions for GLO 4 Global business organization 5 Some specific problems with GLO 6 Strategic competencies needed for an efficient GLO 7 Strategies for Global Logistic Operation 8 Summary 1 Definition of Global Logistic Global logistics is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost 2 Barriers to Global Logistic Operation true global operations need so many resources that they are limited to very large companies customers in different countries may demand different types of products products may have features which mean that they are not suitable for global operations 2 Barriers to Global Logistic Operation global products of any kind are not viewed favourably by some customers( Sony, Toyota, Pepsi) organisations lack the human and technical resources needed to work globally organisations may not be able to build the right structures or design strategies that work globally 2 Barriers to Global Logistic Operation managers in different regions have fundamentally different objectives for themselves and the organisation other cultural and economic differences make co-ordination too difficult each country, has different infrastructure, facilities and capabilities that make common operations impossible. 3 Basic conditions for GLO Outsource logistics Have operations with limited needs of logistics Concentrate production and sourcing in one area and then sell globally Or concentrate production in one area and source and sell globally Use postponement to move the finishing of production down supply chains Operate as a local company 4 Global business organization Firms may organize as the following forms National companies International companies .
