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Logistics and Supply Chain Management Introduction to Global Supply Chain Management What is a Supply Chain ? A system or network consisting of organizations and their business processes. What is a Global Supply Chain ? A supply chain developed in a global scale with eight key business processes that are both cross-functional and cross-firm in nature. Business Processes Of Supply Chain SC performs business processes as follows: The Customer Relationship Management Process The Supplier Relationship Management Process The Customer Service Management Process The Demand Management Process The Order Fulfillment Process The Manufacturing Flow Management Process The Product Development and Commercialization Process The Returns Management Process Why do we need a SC system? Providing greater value to customers Faster Order Processing and turn around times Providing a greater product variety To provide competitive advantage What is Global Supply Chain Management? Built upon eight key business processes that are both cross-functional and cross-firm in nature Each process is managed by a cross-functional team, including representatives from logistics, production, purchasing, finance, marketing and research and development Advantages of Global Supply Chain Management Systems Reduction Of Inventory Costs Link-up different organization with a common language Reduce the waste of valuable resources Increase the transaction speed by exchanging data in real-time Increase sales by implementing customer requirements more efficiently Global Supply Chain Operations Reference Model Developed by the Supply Chain Council as cross industry process reference model for Supply Chain Management. Includes 5 major Supply Chain Processes: Plan Source Make Deliver Return Some problems with Global Supply Chains Parts Shortages. Underutilized capacities of manufacturing plants. Excessive finished goods. Increased transportation distances Cultural and Social difference among the partners Cas
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