8/3/2019 Presentation - International Logistics & Supply Chain Management
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International Logistics &
Supply Chain Management
Presented By
Ajinkya Bhavsar ( 06 )
Shilpa Ingle ( 11 )
Joju Johny ( 17 )
Sudhir Singh ( 50 )
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Global Supply Chain
Definition
An integrated process where several business entities such as suppliers,manufacturers, distributors, and retailers work together to plan, coordinateand control materials, parts, and finished goods from suppliers to customers.One or more of these business entities operate in different countries
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Goal of the Global Supply Chain
Prompt and reliable delivery ofhigh-quality products andservices at the least cost.
To effectively meet rising
customer expectations
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Practicality and Usefulness
Help companies compete all over the world
Expand business operations
Offer new services and applications to meet globalcustomers needs
Give company a competitive advantage Falling international trade barriers mean rising profits
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Advantages of Global SupplyChains
Reduced total costs Inventory reduction Reduce cycle time Increased forecast
accuracy Productivity increase Expand international
connections Delivery improvement
Diversified business andtrading Competitive advantage Untapped markets Enhance speed and
efficiency
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Potential Global Supply ChainObstacles
Member nations VS. Non member nations Inefficient transportation and distribution
systems
Market instability
Different languages
Differences in Currencies
Differences in Measurement Systems
(metric versus decimal)
Different Customs, beliefs and cultures
Political turmoil
Trade imbalances
Export surges and recessions
Greater distance
Tax Policies
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Combating Obstacles
Duty specialists and
trade specialists Join nation groups Banding together Form consortiums
Vertically integrate Be innovative & Be
flexible Research
New technology Infrastructure
improvements Reduce the number of
stops in the chain
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Recent changes effectingthe Global Supply Chain
1. Internet and technological change
2. Proliferation of trade agreements
3. Falling Trade Barriers
4. Increase in international trade groups
5. New Markets
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Different Types of Global SupplyChain Models
Own and manage yourown infrastructure
Use strategic alliances Partner with an asset-
based third-party
Partnership with a globalintegrator of logisticsservices
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Global Sourcing
Characteristics
1. Executive commitment to global sourcing
2. Rigorous and well-defined processes
3. Availability of needed resources4. Integration through information technology
5. Supportive organization design
6. Structured approaches to communication
7. Methodologies for measuring saving
Global sourcing is a term used todescribe practice of sourcing from theglobal market for goods and servicesacross geopolitical boundaries.
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Outsourcing
Outsourcing or sub-servicing often refers to the process ofcontracting to a third-party. While outsourcing may beviewed as a component to the growing division of labor
encompassing all societies.
Advantages
Focus on core competencies target your resources at
what you do best
Reduce costs a third-party provider may have greatereconomies of scale than you
Access the third-party providers expertise
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International Logistics
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International Logistics
Definition designing andmanaging a system to controlthe flow of materials into,through, and out of a company.
Two phases of the movement ofmaterials: Materials management the
timely movement of materials,parts, and supplies
Physical distributionmovement of the companysphysical product to customers -transport, warehousing andorder processing
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Logistics Flow
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International Logistics
Cost-saving programs that can be part ofinternational logistics
- Just-in-time (JIT) purchasing and manufacturing
- Electronic data interchange (EDI)
- Early supplier involvement (ESI)
(Before or early in the design phase of a project)
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Classical Logistics Issues
Facility Locations
Sourcing
Distribution - The act and functions of physicallydistributing goods and services including the elementsof transport, warehousing and order processing.Physical distribution is 10-25% of the total cost of an
international order
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International Transportation
Usually greater distances than
with domestic transportation Longer lead times (more planning needed)
More chances for things to go wrong
Potential for delays at port orborder
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Modes of Transportation
Rail and truck
NAFTA countries
Europe
Ocean freight
Conventional cargo vessels
Container ships
Air freight Pipeline
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Selecting a Mode ofTransportation
Transit time
Important for highlyperishable products
Important when product is
needed ASAP Predictability of delivery by a
specific date
Important when buyer needs
product by specified date Cost of shipping per dollar of
product value
Important to economize oncosts with bulky commodities
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International Inventory Issues
Inventories tie up a major portionof corporate funds,thereforeproper inventory policies shouldbe a major concern to theinternational logistician
Just-in-time inventory policiesminimize the volume of inventoryby making it available only whenneeded
The goals of inventory systems
are to Maintain product movement inthe delivery pipeline
Have a cushion to absorb
demand fluctuations
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Storage Facilities
A stationary period is involvedwhen merchandise becomesinventory stored in warehouses
The location decisionaddresses how many
distribution centers to have andwhere to locate them
Storage facilities abroad candiffer in availability and quality
Refrigerated facilities The logistician should analyze
international product sales andthen rank order productsaccording to warehousing
needs
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International Packaging Issues
Packaging is instrumental in gettingmerchandise to the destination in a safe,
presentable condition
Food safety regulations
Because of the added stress ofinternational shipping, packaging that is
OK for domestic purposes may be not be
adequate for international shipping
One solution to the packaging problemhas been the development of inter-modal
containers
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Logistics and Security
After the terrorist attacks of 2001,companies have to deal with the factthat the pace of internationaltransactions has slowed down and thatformerly routine steps now take longer
Logistics systems and moderntransportation systems are often thetargets of attacks
New safeguards for internationalshipments affect the ability of firms to
efficiently plan their internationalshipments.
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Conclusions
The supply chain is complex, globally integrated and extends beyond theenterprise to third parties.
Changes to the supply chain are being driven by company efforts to deliver
better customer value, reduce costs, increase responsiveness and
resiliency.
IT duties and customs barriers are factors in internal business optimization
and location decisions.
New challenges are on the horizon as governments develop strategies to
address security concerns.
Security and efficiency are mutually reinforcing.
Supply Chain complexities make government-industry partnership essential.
Traditional trade facilitation issues and platforms provide an opportunity to
expand global IT trade and also address new security concerns.
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THANK YOU