MODULE 7: GLOBAL SUPPLY CHAIN MANAGEMENT

• It refers to the total amount of a product, resource, or material available for use or sale.

  Supply
• It is a sequence of interconnected links or stages, where each part relies on the others in a continuous process

  Chain
• The interconnected series of activities and organizations involved in creating a product and moving it from suppliers to consumers.

  Supply Chain
• It is the coordination and oversight of all activities involved in the production and delivery of goods or services, from the sourcing of raw materials to the final distribution to the end customer.

  Supply Chain Management
• SCM ensures the following:

  • Right quantities
  • At the right time
  • At the lowest possible cost
  • Maintaining high levels of quality and customer satisfaction
• It is the network of organizations, resources, activities, people, and information involved in producing and delivering a product or service to the final customer.

  Supply Chain Structure
• Supply Chain Structure consists of:

  • Upstream Suppliers
  • Manufacturing and Production
  • Downstream Distribution
• Provide raw materials, components, or parts to the manufacturer.

  Upstream Suppliers
• Transforms RMs into finished goods.

  Manufacturing and Production
• Transports and distributes finished goods to end customers.

  Downstream Distribution
• Supply Chain Structure consists of:

  • Suppliers
  • Manufacturers
  • Distributors
  • Retailers
  • Customers
• Provide raw materials or components

  Suppliers
• Transform inputs into finished products.

  Manufacturers
• Handle warehousing and transportation

  Distributors
• Sell products to consumers

  Retailers
• The final destination of the products.

  Customers
• SCM Strategy involves...


  • Using technology
  • Developing relationships with suppliers and customers
  • Optimizing logistics
  • Continuously improving processes
• SCM Case Study of Starbucks applies the following....


  • Global Sourcing and Supplier Management
  • Efficient Manufacturing and Logistics
  • Inventory Management and Forecasting
  • Technology and Supply Chain Visibility
  • Sustainability Initiatives
• SCM Case Study of Amazon applies the following...


  • Customer-Centric Focus and Fast Delivery
  • Advanced Inventory Management and Demand Forecasting
  • Supplier and Vendor Relationships
  • Technology-Driven Operations
  • Sustainability and Innovation Initiatives
• Supply Chain Performance Metrics


  • Cost
  • Quality
  • Speed
  • Flexibility
  • Reliability
• Total cost to produce and deliver a product

  Cost
• Defect rates, returns, and customer satisfaction

  Quality
• Lead time and delivery times

  Speed
• Ability to adapt to changes in demand

  Flexibility
• Consistency in meeting delivery schedules

  Reliability
• They still rely on supply chains to manage information, resources, and labor


  Supply Chains for Service Organizations
• Major Issues Affecting Supply Chain Management

  • Globalization
  • Sustainability
  • Risk Management
  • Technology Integration
  • Supplier Reliability
• Managing international suppliers, logistics, and markets

  Globalization
• Reducing the environmental impact of supply chain activities.

  Sustainability
• Handling disruptions like natural disasters, political instability, or supply shortages.

  Risk Management
• Utilizing advanced software for inventory management, demand forecasting, and real-time tracking

  Technology Integration
• Ensuring timely and consistent delivery of materials

  Supplier Reliability
• It refers to the phenomenon where small fluctuations in demand at the consumer level cause increasingly largerfluctuations in orders at each upstream stage of the supply chain.

  Bullwhip Effect
• Role of Purchasing is also known as...

  Procurement
• It involves sourcing and buying the raw materials, components, and services needed for production.

  Procurement
• Involve long-term collaborations with suppliers to improve quality, reduce costs, foster innovation and continuous improvement

  Strategic Purchasing Partnership
• Strategic Purchasing Partnership is based on..

  • Mutual trust
  • Shared goals
  • Collaborative problem-solving
• It involves moving goods from production facilities to end customers.

  Supply Chain Distribution
• Supply Chain Distribution includes...

  • Warehousing
  • Transportation
  • Inventory management
  • Order fulfillment
• Trends in Supply Chain


  • Automation
  • Sustainability
  • Digital Supply Chains
  • e-Commerce
  • Reshoring
  • Local Sourcing
  • Blockchain