Global Supply Chain

Management

1
Global Supply Chain Management Sessions 1 & 2
Overview

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Million, Billion & Trillion???

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 Globalisation Process
• Countries, economies, cultures, and
populations become increasingly
interconnected and interdependent
through cross-border exchange of
goods, services, capital, technology,
information, and people.
• Phenomenon driven by advances in
transportation, communication, and
technology.

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11
Key Aspects of Globalisation

Economic Cultural Political and Technological

integration exchange legal changes advancement

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Effects of Globalisation
• Business expansion
• Job creation and economic growth
• Challenges and criticisms

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Challenges Amplified by Trump’s Tariffs

Economic and Trade Disruptions

• Rise in protectionism
• Supply chain fragmentation
• Retaliatory measures
• Market volatility
• Threat to global growth
• Impact on exporters

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 • Undermining the WTO
Political and
• Weaponisation of trade
Systemic Risks
• Regionalisation of trade

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What is a Supply Chain?

• Coordinated network of organisations, people, activities, information, and

resources

• Transform raw materials into finished goods

• Produce and deliver product or service from its origin to final customer.

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Key Components of Supply Chain

Sourcing/ Manufacturing/ Logistics &

Planning
Procurement Production Transportation

Warehousing & Distribution & Returns/Reverse

Storage Fulfillment Logistics

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Logistics Management???

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Distribution
Management???

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 Logistics Management???

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Supply Chain Management???

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Relating Marketing Channels, Logistics
Management & Supply Chain Management

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Supply Chain Integration
Common

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Internal Value Chain: Local Focus
Executive
R&D
Management

Information
Operations
Technology

Supply
Logistics
Management

Finance Marketing

Human
Accounting Resource
Management

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Internal Value Chain: Company Focus
Executive
R&D
Management

Information
Operations
Technology

Upstream Downstream
Supply
Suppliers Management
Logistics
Customers

Finance Marketing

Human
Accounting Resource 28
Management
SCM: Linked Value Chains
Executive
R&D
Management

Information
Operations
Technology

Executiv Executiv Executiv Executiv

e e e e
R&D R&D R&D R&D
Manage Manage Manage Manage
ment ment ment ment

Informati Informati Informati Informati

on on Operatio Operatio on on
Operatio Operatio
Technol Technol ns ns Technol Technol
ns ns
ogy ogy ogy ogy

Supply Supply Logistics

Supply Supply Supply
Manage Manage Logistics Manage LogisticsLogistics
Manage Logistics
ment Management
ment ment ment

Marketin Marketin Marketin Marketin

Finance Finance Finance Finance
g g g g

Human Human Human Human

Resourc Resourc Resourc Resourc
Accounti Accounti Accounti Accounti
e e e e
ng ng ng ng
Manage Manage Manage Manage
ment ment ment ment

Finance Marketing

Supplier’s Supplier Focal Customer Customer’s

Supplier Firm Human Customer
Accounting Resource 29
Management
 Supply chain management
is the management of
upstream and downstream relationships
with suppliers and customers
in order to deliver superior customer value
at less cost to the supply chain as a whole.

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Foundations of the
Global Supply Chain

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What has accelerated and necessitated the
need for a robust global supply chain?

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Globalisation
of Markets

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Globalisation of Markets

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Globalisation
of Markets

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Globalisation of
Markets

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Globalization
of Markets

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Globalisation of
Production

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Globalisation of
Production

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Globalisation of
Production
 Key Components of Global Supply Chain

Planning
Sourcing/ Procurement
Manufacturing/ Production

Logistics & Transportation

Warehousing & Storage

Distribution & Fulfilment

Returns/Reverse Logistics

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Strategic Role in Business and Society

• Driving innovation

• Supporting customer expectations

• Enabling economic resilience

• Promoting sustainability and ethical practices

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 • Cost Efficiency

Key Benefits of • Market expansion

Global Supply
• Resource and talent access
Chains
• Operational flexibility and risk management

• Economic growth and job creation

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Challenges in Global Supply Chain Management

• Complexity

• Regulatory compliance

• Disruption risks

• Communication

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Key Trends Driving Globalisation in Supply Chain
Management

• Technological advancements
• Expansion of international trade agreements
• Global sourcing and outsourcing
• Emergence of new markets
• Sustainability and ethical sourcing
• Supply chain risk management
• Logistics and transportation innovations
• Customer expectations and customisation
• Regulatory and compliance complexity

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Key Objective of a Supply Chain???

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Bullwhip Effect

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Reverse Logistics

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5 Steps to Reverse Logistics

Keep
Process the Deal with
Returns Repair Recycle
Return Returns Moving

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Global Supply Chain
Management

1
Global Supply Chain Management Sessions 3 & 4
Overview

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3
Key Differences between Primary and Support
Activities in the Value Chain???

4
 Summary Table: Activities in Porter's Value Chain
Category Activities Value to Business

Inbound logistics Receiving, storing, inventory Reliable supply, lower input cost

Operations Manufacturing, packaging Efficient output, consistent quality

Outbound logistics Warehousing, distribution Timely delivery, broad reach

Promotion, pricing, sales force Customer attraction, increased revenue
Marketing & sales

Service Installation, support, repair Customer loyalty, brand reputation

Procurement, HR, tech,
Support activities infrastructure Improved efficiency, lower overheads

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Value Chain versus Supply Chain: Key
Differences

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 Value Chain versus Supply Chain: Key Differences
Aspect Supply Chain Value Chain
Movement & logistics of goods Activities that add value at every
Focus
from suppliers to customers stage from conception to after-sales
Efficiency, cost reduction, timely Increase product value, gain
Goal
delivery competitive advantage
Sourcing, manufacturing, R&D, design, marketing, sales,
Scope
warehousing, distribution customer support
Inventory turnover, cost efficiency, Profit margin, customer
Measurement
lead time satisfaction, brand loyalty
Management Operational management Business strategy, value creation

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 • Freight/Cargo

• Freight Size

Key Terms Used • Bulk cargo

in Global Supply
• Detention/Demurrage
Chain
Management • Airway Bill/Bill of Lading

• Shipper

• Consignee

• Carrier

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Key Terms Used in Global Supply Chain
Management
• 3PL

• 4PL

• 1PL

• 2PL

• Freight forwarding

• Consolidation

• Bonded warehouse

• Incoterms
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 • Intermodal transportation

• Deadhead

• Backhaul
Key Terms Used
• Line haul
in Global Supply
Chain • Container
Management • Reefer

• Cross-docking

• Milk run

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Key Terms Used in Global Supply Chain Management

• Drop shipment/Drop shipping

• Economic order quantity (EOQ)

• Kitting

• Safety stock

• Backorder

• Order fulfilment

• SKU (stock keeping unit)

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 • Demand forecasting

• Demand planning
Key Terms Used
in Global Supply • Supply chain planning
Chain • Integrated business planning (IBP)
Management
• Analytics

• Distribution centre (DC)

• Distribution planning

• Hub-and-spoke distribution

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 Key Terms Used in Global Supply Chain
Management

• ERP (enterprise resource planning)

• EDI (electronic data interchange)
• RFID (radio frequency identification)
• IoT in the supply chain
• Quality control (QC) / Quality assurance (QA)
• Trade compliance
• Sustainability in the supply chain
• Total cost of ownership (TCO)
• Inventory turnover

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 • Lead time

• Service level agreement (SLA)

Key Terms Used
in Global Supply • Supply chain visibility
Chain
Management • Nearshoring and offshoring

• Bolt-on acquisition

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 Product
(material)
flow

Essential Flows Value and Information

in a Global risk flows flow

Supply Chain

Financial
Reverse
(cash)
flow
flow

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How do planning and sourcing coordinate in a
global supply chain flow?

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 Planning & Sourcing Coordination
Step Planning Sourcing Activities Coordination
Activities Mechanism
Develop demand Review supplier Share forecasts and
Forecasting
estimates capacity updates
Set production Align orders with
Scheduling Secure materials
timelines schedules
Risk Identify supply/ Mitigate supplier/ Joint scenario
management demand risks geopolitical risks planning
Monitor actual
Adjust procurement if Ongoing data and
Execution versus planned
needed exceptional handling
results

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Different Models for Organising
International Supply Chains

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Continuous flow model

• Steady, uninterrupted flow of goods and materials.

• Stable, predictable demand.

• Maximises efficiency, reduces inventory costs, and ensures consistent supply.

• Less adaptable to market disruptions.

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Fast chain model

• Rapid response to emerging trends.

• Rapidly changing, seasonal, or trend-driven products.

• Quick, reduces risk of obsolete inventory, captures market opportunities.

• Higher operational costs, increased pressure on manufacturing and logistics.

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Agile model

• Swiftly respond to changes in both supply and demand.

• High customisation or handling unpredictable demand.

• Adapts quickly to market changes and customer requests.

• Higher costs and complexity.

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Flexible model

• Balances efficiency with adaptability.

• Seasonal spikes or mixed demand patterns.

• Optimises inventory and production, responsive to changes.

• Complicated coordination and higher operational costs.

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Custom-configured model

• Focuses on producing tailored products using modular components.

• Product personalisation.

• Maintains control over costs and lead times.

• Increased complexity in managing customisation and component inventory.

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Efficient chain model

• Optimises resources and operations.

• Best for highly competitive industries with thin margins.

• Streamlined processes, reduced waste, and cost competitiveness.

• May sacrifice flexibility and innovation for the sake of efficiency.

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 Virtual supply chain model

• Leverages digital technologies.

• Enhanced transparency and real-time coordination.

• Improved information sharing, faster reaction times, and increased resilience.

• Relies on robust IT infrastructure and data integration.

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 Bridging
Risk
distance and
reduction
Role of
complexity

Intermediaries
Across Borders Information
and
Enabling
market
transparency access

Value-
adding
activities

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Cross-Border Partnerships

• Expanding reach & market presence

• Enhancing operational efficiency

• Risk sharing and resilience

• Driving innovation and capability building

• Strengthening sustainability and compliance

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