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The Global Supply Chain

The Global Supply Chain. Prepared by Becky Spinney Operations Management 345 May 9, 2002. A Brief Overview. Global Supply Chain Definition Usefulness and practicality Changes effecting global supply Advantages/Disadvantages Solutions Brainstorming exercise. A Brief Overview.

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The Global Supply Chain

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  1. The Global Supply Chain Prepared by Becky Spinney Operations Management 345 May 9, 2002

  2. A Brief Overview • Global Supply Chain • Definition • Usefulness and practicality • Changes effecting global supply • Advantages/Disadvantages • Solutions • Brainstorming exercise

  3. A Brief Overview • A real world example • Components/consideration in global supply chain design • Exercise/application • Summary • Bibliography

  4. What is a Global Supply Chain? • Definition- • The facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.

  5. What is a Global Supply Chain • The global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end consumers. • In the instance of global supply, the chain is extended to many different countries around the world.

  6. Practicality and Usefulness • Help companies compete all over the world • Expand business operations • Offer new services and applications to meet global customers needs • Give company a competitive advantage

  7. Goal of the Global Supply Chain • Prompt and reliable delivery of high-quality products and services at the least cost • To effectively meet rising customer expectations

  8. Recent changes effecting the global supply chain • Internet and technological change • Proliferation of trade agreements

  9. Recent changes effecting the global supply chain • Falling Trade Barriers • Increase in international trade groups • New Markets

  10. Advantages • Diversified business and trading • Lower supply chain costs • Reduced cycle time • Competitive advantage • Untapped markets • Enhance speed and efficiency

  11. Disadvantages and problems • Member nations VS. Non member nations • Inefficient and undersized transportation and distribution systems • Market instability

  12. Solutions • Duty specialists and trade specialists • Vertically integrating • Banding together • Infrastructure improvements • Flexibility

  13. Brainstorming Exercise • What are some reasons for extending your business and supply chain globally?

  14. Brainstorming Exercise • Increase sales • Satisfy shareholders • Falling tariffs • Increase in International Trade • Increase in internet usethroughout the world.

  15. Components of a supply chain • Structures • Processes • Linkages

  16. Issues/considerations when designing a global supply chain • Strategic plan or Objective goals • Uncertainty • Communication and information flow • Types and numbers of facilities and location

  17. A Real World Example • Stanford Global Supply Chain Management Forum • Global Supply Chain Associates

  18. Exercise • Make a list of pros and cons for developing a global supply chain. • What are the different costs your company will encounter? • Do the benefits or global business outweigh the costs?

  19. Summary • Definition • Usefulness and practicality in today’s world • Advantages, disadvantages, and solutions • Components and considerations

  20. Bibliiography Clarkson University. “Global Supply Chain Management.” www.clarkson.edu May 7, 2002. Global Supply Chain Associates homepage. www.gsca.com May 7, 2002. Macaulay Institute. “Why have these global supply chains developed.” www.mluri.sari.ad.uk/ May 8, 2002. Russell, Roberta and Taylor, Bernard. Operations Management. New Jersey: Prentce Hall, Inc. 2000. pp 373-86. The Forum. “The Stanford Global Supply Chain Management Forum.” www.stanford.edu/group/scforum/ May 8, 2002.

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