Going Global Global Supply Chain Management and Importing
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Going Global Global Supply Chain
Management and Importing
Chapter 1
Introduction to Global Supply Chain
Management
INTRODUCTION
What is a global
supply chain?
What is global supply chain
management?
MANAGING A GLOBAL SUPPLY CHAIN
CHALLENGES
Coordinating flow of materials, information and finance
Intellectual property protection
Conflicting business objectives and requirements between suppliers and buyers.
Identifying and assuring the reliability of international business partners
Inherent uncertainty between markets and consumer demand
Assessing finance and insurance
Currency fluctuations Compliance with international regulations and standards
Supply chain processes
SCOR model
Chapter 2
Planning the Global Supply Chain
Supply chain planning
Level One
Refine and confirm the business objectives that the supply chain must
support
Review the external markets:
• The economic environment • Current regulations in the market • Technological developments • Cultural, demographic, and infrastructural issues • Review the competing organizations in the international marketplace
Review internal processes: • Product characteristics • Service characteristics • Operational strategy • Competitive strategy analysis
Examine existing supply chain processes and assess how they match business requirements
Network
Processes
Information systems
Organization
Risk management
Supply chain planning
Level Two
Supply chain planning
Plan reverse logistics
or returns
Plan delivery
Plan product build
process
Plan sourcing strategy
Add operational
detail to basic
supply chain design
Level Three
ELEMENTS OF A SUPPLY CHAIN PLAN
• Cover page
• Executive summary
• Supply chain maps
• Supply chain strategies
• Human resources required
• Sourcing
• Production
• Materials management and handling
• Product modifications (if required)
• Inventory management
ELEMENTS OF A SUPPLY CHAIN PLAN
• Storage and warehouse space
• Order processing
• Shipping and transportation
• Delivery
• Quality control
• After-sales service and customer satisfaction
• Risk management
• External support partners
• Financial requirements
• Implementation schedule
Supply chain plan
Implementing the plan
Managing organizational
change
Chapter 3
Managing Procurement and Sourcing
Global sourcing
What is global sourcing?
Risks involved:
• Quality
• Ethical considerations
• Patent protection
• Transportation costs
• Shipping and distribution
schedules
• Risks related to extended transit
times
• Cultural differences
• Documentation intricacies
• Instability of foreign
governments
• Weather conditions
The sourcing process
Global sourcing
E-
procurement
Primary
and
Secondary
sourcing
Supply
base
rationalization
and
consolidation
Total
acquisition
cost
analysis
Make or
buy
analysis
Efficient sourcing
Outsourcing
Advantages Disadvantages
Reduction in costs Possibility of increased costs
Gaining outside expertise
Loss of company control
Customer service improvements
Negative impact on company employees
Focus on core competencies
Negative impact on customers
Obtaining outside technology
Relationship problems
Considerations
• Method of payment
• Payment terms
• Ensuring receipt
Compliance with
international law
Exporting considerations
International export regulations
Exchange control licenses
Export quotas
Exporting documents
Commercial invoice
Bill of lading
Export declaration
Packing list
Insurance document
Certificate of origin
Compliance with
international law
Importing considerations
Import regulations
Importers liability
Import quotas
Antidumping legislation
Tariff classification
Importing documents
Commercial invoice
Bill of lading
Import declaration
Packing list
Insurance document
Certificate of origin
Chapter 4
Incoterms
Incoterms
Summary of Incoterms
Departure (EXW)
Main Carriage Unpaid (FCA, FAS, FOB)
Main Carriage Paid (CFR, CIF, CPT, CIP)
Arrival (DAF, DES, DEQ, DDU, DDP)
Incoterms
Choosing the right Incoterm
Location of the
purchaser
and seller A company’s
experience with
international trade
Ability for either party
to obtain cost
advantages for
transportation or
warehousing
Factors that help
determine which
Incoterm is the best one
for an organization to use
Chapter 5
Production Management
Production management
Monitoring
performance
Planning
demand
fluctuations
Meeting
requirements
Time buckets
and
planning
horizons
Scheduling
steps
Materials
requirement
planning
Production
planning
activities
Adapting product design
Packaging and
transportation
Concurrent
and parallel
processing
Standardization
Standards
Type
Performance standards
Work standards
Customer service standards
ISO 9000 standards
What is subject to
regulations?
Product Production
process
Packaging
and
labelling
Types of regulations
Type
Health and safety
Environmental
Packaging
Labelling
Packing
Marking
Safety
Product release procedures
Double checking product specifications and shipment numbers against customer orders
Examining random selections of the product for quality problems
Confirming all necessary documentation has been completed
Examining packaging to ensure it meets required regulations
Preparing audit reports confirming quality procedures that were implemented during production
Checking that any required certification procedures have been applied to the shipment
Chapter 6
Inventory Management
Inventory and
global supply chains
Category
Raw material
Finished product
Work in progress (WIP)
Consumables
Service, repair, replacement and spare items (S&R items)
Inventory type
Service
Pipeline
Contingency
Safety stock
Efficient procurement
Inventory management
terminology
Term Descriptions
Ordering Economic order quantity (EOQ)
Inventory levels On-hand stock
Net stock
Net inventory
Stock-outs Stock-outs
Finances Average inventory value
Inventory carrying cost
Lost sales cost
Total policy cost
Demand Annual demand
Forecast annual demand
Lead time
Lead time demand
Inventory management
Select a system
for storing
inventory
Inventory
tracking
Maintaining optimum
inventory levels
Optimal
levels
Apply JIT
Vendor
managed
inventory
Quick
response
strategy
Planning storage
Warehouses
and distribution
Selecting locations
Centralized and
decentralized
warehousing
Chapter 7
Managing Delivery
Managing delivery
Planning transportation
Preparing a Transportation Activity Profile
Origins and destinations for required shipments between different supply chain locations, such as warehouse to retail store or supplier to manufacturing site
Required frequency of shipments between different supply chain locations
Time required to transport goods from origin to destination
Modes of transport available for the required shipments and their transit times
Transportation costs for each available mode of transport
Transportation activity profile
Carrier
contract
negotiation
Shipment
rating
Carrier
Route
selection
Modes of
transportation
Shipping
frequency
What needs
to be
planned
Upon arrival
Using foreign
cargo facilities
Customs
clearance Receiving payment
Chapter 8
Managing Intermediaries
Intermediaries
Types of
intermediaries
Freight
forwarders NVOCC
Trading
houses
Export
merchants
Export
agents
Import
agents
Import
merchants
Insurance
agents Financial
institutions
Third party logistics (3PLs)
Services offered:
Inbound freight
Customs and freight consolidation
Warehousing
Order fulfillment
Distribution
Management of freight to customers
Cargo insurance
Insurance conditions
Free of Particular Average (FPA) American Conditions (FPAAC)
FPA British Conditions (FPAEC)
With average (WA)
All risk
Special clauses
Marine extension clause
War clauses
Exemptions
Act of God
Enemies of the Queen or State
Defect or inherent vice in the goods
Act of default of the shipper or owner
The reverse supply
Type of Return
Close-outs
Buy-outs
Job-outs
Surplus
Defectives
Non-defective defectives
Salvage
Returns
Safety issue returns
Recalls
Chapter 9
Managing Returns
Managing the returns
process
Chapter 10
Managing IT
Information technology
System
Customer Relationship Management System (CRM)
Product Data Management System (PDM)
Product Lifecycle Management System (PLCM)
Inventory Management System (IMS)
Transportation Management System (TMS)
Warehouse Management System (WMS)
e-Commerce solutions
• Procurement and purchasing
• Online retail sales
• Customer relationship management (CRM)
• Inventory Management
• Transportation management
• Warehouse management
• Collaborative planning
Benefits of e-commerce
Cost
efficiencies
Automatic
notifications
Simplification
Tracking
Labelling
Reduced
administrative
costs
Auditing
Customer
service
improvements
Chapter 11
Trade Documentation
Trade documentation
Export Import
Commercial invoice Commercial invoice
Bill of lading Bill of lading
Packing list Packing list
Insurance document Insurance document
Certificate of origin Certificate of origin
Export declaration Import declaration
Standard Export and Import Documentation
Trade documentation
Export documentation
Export licenses or permits
Dangerous goods declaration
Exchange control document
Inspection certificates
Safety certifications
Additional documentation
Packing declaration
Inspection certificate
Quality certificate
Phytosanitary certificate
Fumigation certificate
Veterinary certificate
Public health certificate
ATA carnet
Import documentation
Special certificate of origin
Customs bond
Certified consular invoice
Transportation documents
Document
Waybill
Bills of lading
Straight bill of lading
Short-form bill of lading
House bill of lading
Intermodal bill of lading
Forwarder’s receipt
Chapter 12
Managing Risks
Supply chain risks
Security initiatives
• The Customs Trade Partnership against Terrorism (C-TPAT)
• The International Ship and Port Security Code (ISPS Code)
• The Container Security Initiative (CSI)
• Partners in Protection (PIP)
• Free and Secure Trade Program (FAST)
Chapter 13
Completing Import Documentation
Required documentation
• Bill of lading
• Carrier’s manifest (Cargo Control Documents)
• Canada Customs Invoice or Commercial Invoice
• Import permits, certificates or licenses (as required)
• Other documentation required to satisfy CBSA or other government departments
• Certificate of origin (if applicable)
Sample:
Bill of Lading
Sample:
Cargo Control Document
Sample:
Canada Customs Invoice
Certificate of Origin
• NAFTA (North American Free Trade Agreement)
• CIFTA (Canada-Israel Free Trade Agreement)
• CCFTA (Canada-Chile Free Trade Agreement)
• CCRFTA (Canada-Costa Rica Free Trade Agreement)
• Form “A” Certificate of Origin from certain developing countries
• For Canadian importers, the NAFTA certificate of origin is the one that is most likely to be used, because the majority of imports into Canada come from NAFTA countries.
Sample:
Certificate
of Origin
Consolidated shipments
• What are consolidated shipments?
• What are the documentary requirements?
Electronic data interchange systems
• Advance Commercial Information (ACI)
• Accelerated Commercial Release Operations Support System (ACROSS)
• Customs Self Assessment (CSA)
• Release Notification System
The importing procedure g
Release procedures
• Release with full accounting and payment
• Release on minimum documentation (RMD)
• G7 Import One Step Release on Full Documentation (RFD)
Chapter 14
Clearing Imports Through Customs
Clearance procedures
• Accounting
• Cargo Control Document
• Invoice
• Canada Customs Coding Form (B3)
• Certificates of origin
Calculating tariffs and duties
• When to pay GST
• Assessing value of imported goods
• Making payments
• Penalties and interest
• Self adjustments
• Re-determinations
• Duty drawbacks
Dispute resolution
• Making an appeal
• Appealing the decision
Related Documents
