The Global Supply Chain
Prepared by Becky Spinney
Operations Management
345
May 9, 2002
A Brief Overview
• Global Supply Chain
–
–
–
–
–
–
Definition
Usefulness and practicality
Changes effecting global supply
Advantages/Disadvantages
Solutions
Brainstorming exercise
A Brief Overview
– A real world example
– Components/consideration in
global supply chain design
– Exercise/application
– Summary
– Bibliography
What is a Global Supply
Chain?
• Definition-
• The facilities, functions, and
activities involved in
producing and delivering a
product or service, from
suppliers to customers.
What is a Global Supply
Chain
• The global supply chain is made up
of the interrelated organizations,
resources, and processes that create
and deliver products and services to
end consumers.
• In the instance of global supply, the
chain is extended to many different
countries around the world.
Practicality and
Usefulness
• Help companies compete all
over the world
• Expand business operations
• Offer new services and
applications to meet global
customers needs
• Give company a competitive
advantage
Goal of the Global
Supply Chain
• Prompt and reliable delivery
of high-quality products and
services at the least cost
• To effectively meet rising
customer expectations
Recent changes effecting
the global supply chain
• Internet and
technological change
• Proliferation of trade
agreements
Recent changes effecting
the global supply chain
• Falling Trade Barriers
• Increase in international
trade groups
• New Markets
Advantages
•
•
•
•
•
•
Diversified business and trading
Lower supply chain costs
Reduced cycle time
Competitive advantage
Untapped markets
Enhance speed and efficiency
Disadvantages and
problems
• Member nations VS. Non
member nations
• Inefficient and undersized
transportation and
distribution systems
• Market instability
Solutions
• Duty specialists and trade
specialists
• Vertically integrating
• Banding together
• Infrastructure improvements
• Flexibility
Brainstorming Exercise
• What are some reasons
for extending your
business and supply
chain globally?
Brainstorming Exercise
• Increase sales
• Satisfy shareholders
• Falling tariffs
• Increase in International
Trade
• Increase in internet use
throughout the world.
Components of a supply
chain
• Structures
• Processes
• Linkages
Issues/considerations when
designing a global supply chain
• Strategic plan or Objective
goals
• Uncertainty
• Communication and information
flow
• Types and numbers of facilities
and location
A Real World Example
• Stanford Global Supply
Chain Management Forum
• Global Supply Chain
Associates
Exercise
• Make a list of pros and cons for
developing a global supply
chain.
• What are the different costs
your company will encounter?
• Do the benefits or global
business outweigh the costs?
Summary
• Definition
• Usefulness and practicality in
today’s world
• Advantages, disadvantages, and
solutions
• Components and considerations
Bibliiography
Clarkson University. “Global Supply Chain Management.”
www.clarkson.edu May 7, 2002.
Global Supply Chain Associates homepage. www.gsca.com
May 7, 2002.
Macaulay Institute. “Why have these global supply chains
developed.” www.mluri.sari.ad.uk/ May 8, 2002.
Russell, Roberta and Taylor,
Bernard. Operations Management. New Jersey:
Prentce Hall, Inc. 2000. pp 373-86.
The Forum. “The Stanford Global Supply Chain
Management Forum.”
www.stanford.edu/group/scforum/ May 8, 2002.