Presentation - International Logistics & Supply Chain Management

8/3/2019 Presentation - International Logistics & Supply Chain Management

1/25

International Logistics &

Supply Chain Management

Presented By

Ajinkya Bhavsar ( 06 )

Shilpa Ingle ( 11 )

Joju Johny ( 17 )

Sudhir Singh ( 50 )


2/25

Global Supply Chain

Definition

An integrated process where several business entities such as suppliers,manufacturers, distributors, and retailers work together to plan, coordinateand control materials, parts, and finished goods from suppliers to customers.One or more of these business entities operate in different countries


3/25

Goal of the Global Supply Chain

Prompt and reliable delivery ofhigh-quality products andservices at the least cost.

To effectively meet rising

customer expectations


4/25

Practicality and Usefulness

Help companies compete all over the world

Expand business operations

Offer new services and applications to meet globalcustomers needs

Give company a competitive advantage Falling international trade barriers mean rising profits


5/25

Advantages of Global SupplyChains

Reduced total costs Inventory reduction Reduce cycle time Increased forecast

accuracy Productivity increase Expand international

connections Delivery improvement

Diversified business andtrading Competitive advantage Untapped markets Enhance speed and

efficiency


6/25

Potential Global Supply ChainObstacles

Member nations VS. Non member nations Inefficient transportation and distribution

systems

Market instability

Different languages

Differences in Currencies

Differences in Measurement Systems

(metric versus decimal)

Different Customs, beliefs and cultures

Political turmoil

Trade imbalances

Export surges and recessions

Greater distance

Tax Policies


7/25

Combating Obstacles

Duty specialists and

trade specialists Join nation groups Banding together Form consortiums

Vertically integrate Be innovative & Be

flexible Research

New technology Infrastructure

improvements Reduce the number of

stops in the chain


8/25

Recent changes effectingthe Global Supply Chain

1. Internet and technological change

2. Proliferation of trade agreements

3. Falling Trade Barriers

4. Increase in international trade groups

5. New Markets


9/25

Different Types of Global SupplyChain Models

Own and manage yourown infrastructure

Use strategic alliances Partner with an asset-

based third-party

Partnership with a globalintegrator of logisticsservices


10/25

Global Sourcing

Characteristics

1. Executive commitment to global sourcing

2. Rigorous and well-defined processes

3. Availability of needed resources4. Integration through information technology

5. Supportive organization design

6. Structured approaches to communication

7. Methodologies for measuring saving

Global sourcing is a term used todescribe practice of sourcing from theglobal market for goods and servicesacross geopolitical boundaries.


11/25

Outsourcing

Outsourcing or sub-servicing often refers to the process ofcontracting to a third-party. While outsourcing may beviewed as a component to the growing division of labor

encompassing all societies.

Advantages

Focus on core competencies target your resources at

what you do best

Reduce costs a third-party provider may have greatereconomies of scale than you

Access the third-party providers expertise


12/25

International Logistics


13/25


Definition designing andmanaging a system to controlthe flow of materials into,through, and out of a company.

Two phases of the movement ofmaterials: Materials management the

timely movement of materials,parts, and supplies

Physical distributionmovement of the companysphysical product to customers -transport, warehousing andorder processing


14/25

Logistics Flow


15/25


Cost-saving programs that can be part ofinternational logistics

- Just-in-time (JIT) purchasing and manufacturing

- Electronic data interchange (EDI)

- Early supplier involvement (ESI)

(Before or early in the design phase of a project)


16/25

Classical Logistics Issues

Facility Locations

Sourcing

Distribution - The act and functions of physicallydistributing goods and services including the elementsof transport, warehousing and order processing.Physical distribution is 10-25% of the total cost of an

international order


17/25

International Transportation

Usually greater distances than

with domestic transportation Longer lead times (more planning needed)

More chances for things to go wrong

Potential for delays at port orborder


18/25

Modes of Transportation

Rail and truck

NAFTA countries

Europe

Ocean freight

Conventional cargo vessels

Container ships

Air freight Pipeline


19/25

Selecting a Mode ofTransportation

Transit time

Important for highlyperishable products

Important when product is

needed ASAP Predictability of delivery by a

specific date

Important when buyer needs

product by specified date Cost of shipping per dollar of

product value

Important to economize oncosts with bulky commodities


20/25

International Inventory Issues

Inventories tie up a major portionof corporate funds,thereforeproper inventory policies shouldbe a major concern to theinternational logistician

Just-in-time inventory policiesminimize the volume of inventoryby making it available only whenneeded

The goals of inventory systems

are to Maintain product movement inthe delivery pipeline

Have a cushion to absorb

demand fluctuations


21/25

Storage Facilities

A stationary period is involvedwhen merchandise becomesinventory stored in warehouses

The location decisionaddresses how many

distribution centers to have andwhere to locate them

Storage facilities abroad candiffer in availability and quality

Refrigerated facilities The logistician should analyze

international product sales andthen rank order productsaccording to warehousing

needs


22/25

International Packaging Issues

Packaging is instrumental in gettingmerchandise to the destination in a safe,

presentable condition

Food safety regulations

Because of the added stress ofinternational shipping, packaging that is

OK for domestic purposes may be not be

adequate for international shipping

One solution to the packaging problemhas been the development of inter-modal

containers


23/25

Logistics and Security

After the terrorist attacks of 2001,companies have to deal with the factthat the pace of internationaltransactions has slowed down and thatformerly routine steps now take longer

Logistics systems and moderntransportation systems are often thetargets of attacks

New safeguards for internationalshipments affect the ability of firms to

efficiently plan their internationalshipments.


24/25

Conclusions

The supply chain is complex, globally integrated and extends beyond theenterprise to third parties.

Changes to the supply chain are being driven by company efforts to deliver

better customer value, reduce costs, increase responsiveness and

resiliency.

IT duties and customs barriers are factors in internal business optimization

and location decisions.

New challenges are on the horizon as governments develop strategies to

address security concerns.

Security and efficiency are mutually reinforcing.

Supply Chain complexities make government-industry partnership essential.

Traditional trade facilitation issues and platforms provide an opportunity to

expand global IT trade and also address new security concerns.


25/25

THANK YOU

Presentation - International Logistics & Supply Chain Management

Documents

Transcript of Presentation - International Logistics & Supply Chain Management