GLOBAL SUPPLY CHAINS

A REPORT BY THE SUPPLY CHAIN MANAGEMENT

FACULTY AT THE UNIVERSITY OF TENNESSEE

NOVEMBER 2014

Sponsored by

NUMBER FOUR IN THE SERIES GAME-CHANGING TRENDS IN SUPPLY CHAIN

WHAT DOES THE BEST GLOBAL

SUPPLY CHAIN LOOK LIKE?

• Be specific to your business

• Based on your strategic needs

There is no single best answer.

Your company’s best global supply chain

solution needs to:

This study gives you the tools to build your

Supply Chain Network Designand manage complex, global supply chains.

EPIC Framework

• Economic

• Political

• Infrastructure

• Competence

How to identify the strengths, weaknesses, opportunities and threats of

different regions in the world.

Excerpted from Global Supply Chains: Evaluating Regions on an EPIC Framework – Economy, Politics, Infrastructure, and Competence by Mandyam Srinivasan, Theodore Stank, Philippe-Pierre Dornier, and Kenneth Petersen (McGraw-Hill Professional; 2014) with permission from McGraw-Hill Professional.

Key Themes of EPIC Research

• Global SC transitions are fueled by political/ technological innovations like deregulation of trade laws and increased Internet capabilities.

• Global economic power is transitioning back to Asia (or at least leveling between the Americas, Europe and Asia).

• SC professionals must develop strategy with the total cost to the business, not siloed cost cutting, in mind.

• The world is becoming flatter, but to what extent is debatable.

How supply chains have changed and are likely to change.

Excerpted from Global Supply Chains: Evaluating Regions on an EPIC Framework – Economy, Politics, Infrastructure, and Competence by Mandyam Srinivasan, Theodore Stank, Philippe-Pierre Dornier, and Kenneth Petersen (McGraw-Hill Professional; 2014) with permission from McGraw-Hill Professional.

Supply Chain Network Development

Best Practices

• SC decisions are strategy driven

• Companies drive for scale

• Organizations have competence in fact-based, quantitative analysis

• SC decisions are TCO (total cost of ownership) and NPV (net present value) based

• SC decisions are based on holistic product designs

In making global sourcing decisions, our best in class companies

followed 5 practices:

Complex Supply Chain Management

Best Practices

• An effective global S&OP process

• A process to manage complexity, especially product complexity

• Stronger supplier collaborative partnerships

• A talented team on the ground

• Clear visibility throughout their global supply chain and rapid response capability

Best in class companies also followed 5 practices in managing global

supply chains:

Rapid Response and Visibility

• Incorporate the entire supply chain—traceability

(and access to data) from suppliers to customers

• Capture data from disparate sources and translate

to a single format

• Account for security

• Extend to weather tracking and news services.

Natural disasters and political unrest demand rapid response to protect the supply chain.

Rapid response is only possible w/visibility across the supply chain. Visibility must:

Visibility means having data available on orders

tracking, location inventory, transportation

assets/availability and goods within warehouse.

Visibility of Visibility

• BT Trace provides a means for companies to see

and interrogate data

• Can provide supply chain management event

alerts to notify users of disruptions

It is not enough to have accurate, timely data. The data needs to be displayed in a way that

is easy to understand.

Few/Global vs. Multi/Local

Few/Global

vs.

Multi/Local

Read the Full Report

Best Practices for Managing Global Supply Chains

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papers in

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Changing

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