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The Supply Chain Revolution Why integration creates value ? Generalized Supply Chain Model Information system functionality Supply chain information system modules? Integrative Management ?and supply chain Responsiveness ? Financial Sophistication ? Globalization ? 1. Why people begin to focus on the globe business? What can they get from this market? Globalization : 2. Describe the 3 stages for a firm to engage in the global operations? 3. Describe the differences between national logistics operation and global logistics operation? Globalization offers firms several attractive opportunities Demand exceeds local supply 90% of global demand is not fully satisfied by local supply Strategic sourcing Identifying and matching the sources of raw materials and components to manufacturers and distributors Offshoring Moving manufacturing and distribution operations to countries with favorable labor costs and tax laws Significant differences for global logistics Distance of typical order-to-delivery operations is significantly longer compared to domestic business Documentation requirements for business transactions is significantly more complex Operations must be deal with significant Diversity in work practices and local operating environments How consumers Demand products and services must accommodate cultural variations This accountability creates expectations concerning continued sales and financial results. Such expectations often drive promotional and pricing strategies to “load the channel” with inventory to create timely sales. Conversely, it is never timely to make a major reduction in channel inventory. Efforts to lean or deload(卸载) inventory to implement a more responsive operating posture require the ability to absorb a one-time sale reduction among supply chain partners. Start-up ventures are ideally positioned to implement responsive fulfillment systems because they do not face the deload challenge. ? * The Supply Chain Revolution Why integration creat
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