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Overview of Global

Logistics & Supply Chain


Management

Scheduling

the arrival of materials and


other inputs
Warehousing and inventory control
Strategic choice of international
warehousing facilities
Scheduling production
Packaging, transportation and final
delivery
Analysis of transportation costs

Logistics management covers

The

design and management of a system


that controls the flow of materials into,
through and out of the international
corporation

Global logistics

1.
2.

Materials management
Physical distributions

2 major phases of movement of


materials

1.
2.
3.

The systems concept


The total cost concept
The trade-off concept

Major concepts in Global Logistics

The activities involved in Supply chain are


i. Purchasing
ii.Manufacturing
iii.Logistics
iv.Distribution
v.Transportation and
vi.Marketing

Global Supply Chain Management

Covers

both logistics and operations


Includes activities such as sourcing,
procurement, order processing,
manufacturing, warehousing, inventory
control, servicing and warranty, customs
clearing, wholesaling and distribution

The International Supply


Chain/Global Supply Chain

1.
2.

Supply chain as a cross-functional entity


Supply chain as the integrator and
coordinator of production and logistics
activities

Two main aspects of SCM

1.
2.
3.
4.
5.

Substantial geographical distances


Forecasting problems/difficulties in foreign markets
Fluctuations in exchange rates for different
currencies
Demand for great variety of products
Inadequate infrastructures such as
labor skills,
availability of supply
Supplier quality
Lack of local process equipments and technologies
Inadequate transportation facilities and
Inadequate telecommunication facilities

Areas to be considered while


moving from domestic to
International supply chain

Global Supply Chain


Suppliers

Corporation

Customers
Order
placement

Order
processi
ng

transp
ortati
on

Materials
manageme
nt

storag
e

Inventory
managem
ent

Physical
distribution

transportati
on
Physical
distribution

Storage

Inventory
manageme
nt

Forward and reverse flows of information, products and


funds

Two

major areas of Global Logistics are


i. Global sourcing and
ii.Global distribution

Managing Global Logistics

Demand forecasting
Purchasing
Materials
management
Requirement planning
Production planning
Manufacturing inventory
Warehousing
Logistics
Material handling
management
Industrial packaging
Finished goods inventory
Distribution planning
Order processing
Physical
Transportation
distribution
Customer service
Strategic planning
Information technology
Marketing
Sales

Supply
chain
mgmt

Components of Global Logistics

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.

Transport Mode
Inventories
Agents
Financial risk
Cargo risk
Government agencies
Administration
Communication
Insurance
Packaging
Payment

Domestic vs International
Logistics

Value additions?

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