CL chapter 2.pptVIP

INCOMPATIBLE CORPORATE CULTURES Potential differences of corporate culture may negatively affect supply chain effectiveness and efficiency. For example: participative management style might not mesh very well with autocratic management style. * * GLOBALIZATION (1) Challenges are even greater in global supply chains due to cultural, economic, technological, political, spatial and logistical differences. (2) Longer and more unpredictable lead times increase the chance that customer demand might not be fulfilled. (3) Global supply chain glitches drive up supply chain costs and potentially jeopardize customer satisfaction. * * BARRIERS TO SUPPLY CHAIN MANAGEMENT Now, can you tell me the barriers to Supply Chain Management? * * CONTENTS * SUPPLY CHAIN MANAGEMENT AND INTEGRATION Supply chains are integrated by having various parties enter into and carry out long-term mutually beneficial agreements * * SUPPLY CHAIN MANAGEMENT AND INTEGRATION Organizations can pursue three primary methods when attempting to integrate their supply chains. (1) vertical integration (2) formal contracts (3) informal agreements * * SUPPLY CHAIN MANAGEMENT AND INTEGRATION (1) vertical integration One organization owns multiple participants in the supply chain. For example: some lines of paint and automotive tires. (2) formal contracts Use formal contracts among various participants. One of the more popular uses of contracts is franchising (3) informal agreements Informal agreements among the various organizations to pursue common goals and objectives, with control being exerted by the largest organization in the supply chain. * * SUPPLY CHAIN MANAGEMENT AND INTEGRATION Third-Party Logistics (3PL) Logistics outsourcing Contract logistics Fourth-party logistics (4PL) primarily used in global companies Lead logistics provider (LLP) Supply chain software * SUPPLY CHAIN MANAGEMENT AND INTEGRATION Review what we learned in this section and discuss. * * SUMMARY Concept of s