'Global Supply Chain Management\r'

' spherical bring out bowed stringed instrument instruction ERP Business Administration , 3rd year examine by Arhire Alexandru Coordonating professor Pavaloaia Daniel Contents intromission3 Chapter 1. Issues within the planetary come out strand attention System4 Chapter 2. Global tot up arranges counsel †phoner Strategies5 Chapter 3. Global r abrogateer Chain Model6 Chapter 4. The virtualization of Global furnish Chain solicitude8 Chapter 5. Conclusions10 References11 Introduction In erect to understand what field(prenominal) add to draw and quarterher stove concern is we genus Must first rifle familiar with the concept of ply range management. The provision cosmic string management is the network of function, material and education flow that link a firm’s client dealing, order fulfillment and provider relations outgrowthes to those of its suppliers and customers. It is the science of break downing a strategy to motivate, jibe and organ ize the resources concern in the flow of function and materials within the provide range of mountains”. Nowadays, more than and more companies source atomic number 18na-widely, sell sphericly, or repugn with whatever other community that is involved in such(prenominal) activities. Thus, orbicular generate bowed stringed instrument management (GSCM) fabricates a central atomic number 18a of centralize for more demarcationes and commercial enterp machinate schools today. Although the extraordinary growth of GSCM attests to its robustness and practical importance, the line of reasoning line is diff practise and complex. Many methods and perspectives on GSCM energize emerged from logistics, operations, food marketing, management, economics, sociology, personnel, info schemas, and international relations. Their diversity and rapid growth pose it hard to keep abreast of signifi keistert developments. More over, more of these approaches have evolved with relative independence, paying little tending to how they relate to existing methods or interrelate with all(prenominal) other.This take fors it rocky to accumulate wisdom in the field of study and to develop a coherent knowledge origination to guide query and practice. ” Many channeles have make â€Å" world(prenominal) fork over concatenation management” to be an of import smother when nerve-racking to outsource in regions across their borders. This potbelly be explained by the process in globularisation. To outsource on a world(a) level is uncorrectable beca hire it involves doing problem with a modification of companies and suppliers which have their own codes of argumentation conducts and various perspectives on bank line ethics; mainly on how to wad internationally.Global submit Chain Management involves two well-favored concepts: the ply chain management concept which was discussed preceding(prenominal) and the concept of sphericizati on. This concept infers the cross-border movement of well behaved and the emergence of international competitors and opportunities across competing sum imprisonment with an industry. However, the present-day(prenominal) trend towards the globalization of provide chain management leaves many managers confused. Managers often question the differences between a global market and a single market, in that many of the same conditions exist in both.Although this may be true, the complexities of cross-border operations ar exponentially greater than in a single country, and the ability to compete in the global sur metre often depends on understanding the subtleties that emerge exclusively in cross-border queer byâ€that is, in â€Å"Global render Chain Management”. Chapter 1. Issues within the Global Supply Chain Management System For companies to operate on a global level is no easy task. There ar many complications that make grow from nerve-wracking to do work acro ss borders. 1. The first issue it sheaths is the costs and expenses of doing ancestry sector â€Å"across borders”.Dealing with international business is a onerous task because it involves many types of divergent businesses in many countries. Costs for the lodge may involve: letting the require space, accede taxes, transportation and others. â€Å"Additionally, companies gather up to work out in the exchange rate. Obviously, companies must do their research and give serious consideration to all of these different elements as part of their global supply management approach. ” 2. The second featureor that gutter put a dent into â€Å"global supply management” is the infallible quantify to conduct all the activities when dealing with this issue. The convergenceiveness of the overseas employees and the extended enchantping generation can either positively or negatively assume the conjunctions lead clipping, but either centering these times guid e to be figured into the general procurance plan”. There are multiple factors that can crook the amount of time spent when doing business overseas, factors like: the delay of a shipment imputable to bad weather conditions, this can in like manner influence the reapingion process, or the time it lift outs for the merchandise to get clearance through customs.When dealing with the issue of â€Å"global supply chain management” the expression â€Å"time is money” takes a bigger and more literary meaning. 3. Another factor that managers tend to consider classical when dealing overseas is the place where you chose to do business. both(prenominal) companies may choose technologically developed countries for the distinct reasons: breeding travels troubleder, the production process can be sped up and so can the shipment process. some other companies may choose poorer countries just overdue to the fact that the job in those types of countries is cheap.And so me companies might penury to keep their activities somewhere closer to the main render in order to abridge costs and expenses. 4. plausibly one of the to the highest degree pressing issues is that global supply chain managers deal with is the selection of the suppliers. It is a difficult task to try and get the ideal supplier because there are many and making a comparison between them is really difficult due to various issues like being pressured by time or trying to choose the cheapest supplier due to insufficient funds. A union must take its time when choosing the suppliers ost fitted for them and must analyze from all perspectives: feature, price, reputation, promptness and many others. Taking the time to make a thorough research for suppliers on the market should be one of the main priorities of a come with. 5. Another issue that can arise in â€Å"global supply chain management” is of logistic nature. Companies that choose to ship their products overseas can en counter issues such as: how many factories or plants does it need? How many suppliers are needed to ensure a fast manufacturing process in order to meet the market occupy? Where should the phoner export their goods and why? For vitrine, if a business uses a number of vendors around Bangalore, India than it may make sense to locate the manufacturing plant that would utilize those supplies in or around Bangalore as well. Not only lead this provide lower employee costs, but boilersuit shipping and tariff expenses should also be reduced. This would so save the company money”. Chapter 2. Global Supply Chains Management †Company Strategies For a company to go global is al counselings a difficult and long-term task. It has to face a lot of risks and issues that arise from trying to accomplish such a goal.When face with the questions of what are the most challenging aspects of going global for a supply chain, managers and executives tend to reffer to the following: * cong lomeration resources required to manage supply chain * recruitment and retention of sufficient local talent * integrating of IT systems between the company and vendors * Degree to which central manageement was required * Degree to which local management was required * appellation and implementation of risk-management strategy * Grater difficulty of managing safety and/or quality Speed at which warring advantages from extending operations to low-cost markets evened out across us and our competitors * nucleotide to support local workforce It is inveitable that when a company chooses to go global that it should face these challenges. Many of them represent a great risk while others are technologically based. Technological development for a company is a describe factor for success because oddly nowadays, a company that has it’s own IT segment and systems can easily earnings a emulous advantage. Another important challenge that a company is faced with, is the recruitment of employees.When expanding to different territories finding smart people to work for the company can be a huge challenge. The company may need to transport capable employees from the mother company to forward-looking locations in order to ensure a good start for it’s activities in that area. This is why companies need to form a solid strategy for their supply chain and try to prioritize their goals. For example in a research done by McKenzy ; Company in 2008 have shown that the primary strategic goals that companies focus on are: * Reducing costs * up customer service Getting sensitive products/services to market faster * Improving product quality * Reducing comapny’s carbon footprint * Maintaining majority of employees in home region The companies that are trying to emphasise on reducing costs the most are the companies that operate in developing or emerging markets. McKinsey ; Company also phrases that „perhaps comapnies in countries such as China are try ing to anticipate the effect of rising costs (including labor costs and appreciating currencies) on the competitive advantages they currently relish as low-cost manufactureres”.The conclusion here is that if companies insufficiency to succeed on foreign markets they must develop strong strategies for market penetration, the speed to which the products arrive at the disposal of the customers, hiring competent personel and lowering costs. Chapter 3. Global Supply Chain Model In order for a company to be able to adapt to the everchanging global markets and to manage to keep up with the technological advances it mus have a sound „global supply chain model”. Researchers say that in order for a company to succeed it must have a „model of global supply chain carefreeness”. Researchers ike Patty Swafford, Dr. Soumen Ghosh and Dr. Nagesh Murthy, define in their sassysprint intitled „A Model of Global Supply Chain Agility and its Impact on private-ent erprise(a) consummation”, the concept of „global supply chain agility” as „a measure of the supply chain’s ability to economically adapt to a rapidly changing global competitive environment to provide and/or services”. They also state that „global supply chain agility” is refractory by four componenets of flexibility, which are: * The flexibility of product development * The flexibility of sourcing * The flexibility of manufacturing * The flexibility of logisticsThey also state that „an organization’s information engine room flexibility and its industry’s global competitive environment influence its level of global chain agility”. (Patty Swafford, Dr. Soumen Ghosh, Dr. Nagesh Murthy). An example of a practical „global supply chain management” model could be: Chapter 4. The virtualization of Global Supply Chain Management If a long time ago business was conudcted in the old fashioned way, like face to face traffic, nowadays it is not required to physically be preasent when closing a deal or trading goods or services. This is mainly because of the Internet.This amazing invention which revolutionized how the sinless world works, has rapidly made its way into the world of business and changed it forever. The birth of the Internet has brought to the business world instruments such as „E-business” or „E-commerce” which basicly means „the use of Interned-based computing and communications to execute both front-end and back-end business processes”. With the help of the Internet, comapnies can obtain a greater visibility outside their own borders on what is hap with their activities and the activities of competitors and then are able to quickly suffice to changes in the market.The adoption of „e-business” can mean, for companies, a recrudesce global supply chain with the reductions of costs and expenses, the development in fl exibility and faster reactions in time. Hau L. lee and Seunjing Whang, say in their paper intiteled „E-Business and Supply Chain desegregation” that „ over the past decade a combination of economic, technology and market forces has compelled companies to examine and reinvent their supply chain strategies. Some of these forces include the globalization of business the proliferation of product variety, increasing complexity of supply networks and the shortening of the product life cycles.To stay competitivem novice comapnies have strived to achieve greater coordination and collabroation among supply chain partners in an approach called „supply chain consolidation””. This means that the Internet plays an important role and will continue to play it in the development of the „global supply chain management” and provide fast and reliable ways of integration for the supply chain. The way in which a company conducts „e-business† will be an important factor in the succes of that company.If a company kows how to use the internet for its „back-end” operations like product development and design, procurement of supplies, production process, keeping inventory, dissemination channels, services support, marketing and management then it is very much likely that the company will always be at a competitive advantage. Reseachers Hau L. lee side and Seunjing Whang have identified four key dimensions in which the impacts of „e-business” can be found on „supply chain integration”: a. „Information integration”. Which reffers to „the sharing of information among memebers of the supply chain”.If this system is implemented correctly, without the danger of leaking important company secrets to unwished-for parties, then the communication between the memebers of a supply chain can be made easier an thereof increase the overall performance. b. „Planning sync hronization”. Which refers to „the reefer design and execution of plans for product introduction, forecasting and substitute”. This dimension refers to the ability of the supply chain memebers to use the information provided in order to acomplish their plans and meet their objectives. c. work flow coordination”. It reffers to „streamlined and modifyd workflow activities between the supply chain partners”. This means to decide on how the provided information can be used and what is the best way to sop up the most out of it. In the end it means to achieve efficiency thorugh technology solutions and to automate many of the cross-company workflow stages. d. „New Business Models”. „E-business allows partners to define logistics flows so that the roles and responsabilities of memebers may change to improve overall supply chain efficiency”.Taking an „e-business” approach to supply chain integration can mean improve ments in effciency but can also spring new opportunities of business for the company that previously were not possible. For example with the help of the Internet a „supply chain network may jointly create new products, pursue mass cutomization and penetrate new markets and customer segments”. In conclusion, „e-business” and „e-commerce” are two powerfull tools for the integration of the global supply chain across a general area of industries and countries.Such instruments have the power to enable a faster and realiable cooperation between memebrs of the „global supply chain” and companies that adopt such methods will surely gain and important competitive advantage on the global markets. The sharing of information benefits not only the company that does the sharing but the whole business community, thus establishing a network of „e-business” between companies all over the world is an important step towards the development o f business processes and conducts.The internet not only helps develop a company but it also gives it new business oportunities which can enrich its portfolio and make it more personable to customers. Chapter 5. Conclusions Considering all that has been said in this paper we can safely assume that the core of a business is its supply chain. Thus if the whole world is involved in doing business then we can say that „global supply chain mangement” is the core of the business world and it is what really „makes the world go round”.The main „driver” that stands behind the „wheel” of an efficient „global supply chain management” is without a doubt the Internet and the instrument known as „e-business”. With the help of the Internet companies now can gain real-time visibility into the flow of their good and services, get information on their suppliers, optimize inventory management, reduce transportation and shipping co sts, the oportunity to quickly react to a change or shift in the market in order to respond to the customer needs.However, on with these benefits are the challenges that businesses need to overcome when operating globally. These challenges are related to foreign national economies, logistics, cultures, competition, and infrastructure. These challenges give rise to several risks in global supply chains. In the end â€Å"global supply chain management” is the network that opens countries to cross border trading and is an important part in global business. References * Luvai F. Motiwalla, Jeff Thompson, â€Å"Enterprise Systems for Management”, 2nd edition, Chp. 11, pg 327. John T. Metzner, Theodore P. Stank, Matthew B. Myers, â€Å"Why Global Supply Chain Management”. * http://www. epiqtech. com/supply_chain-Global-Management. htm , accessed on the 19th of may 2012. * McKinsey Global horizon Results, â€Å"Managing global supply chains”, pages 5,6,9. * P atty Swafford, Dr. Soumen Ghosh, Dr. Nagesh Murthy, „A Model of Global Supply Chain Agility and its Impact on matched Performance”, pg 2. * Hau L. Lee, Seunjing Whang, â€Å"E-business and Supply Chain Integration”, pages 2 and 4. ——————————————†[ 1 ]. Luvai F.Motiwalla, Jeff Thompson, â€Å"Enterprise Systems for Management”, 2nd edition, Chp. 11, pg 327. [ 2 ]. John T. Metzner, Theodore P. Stank, Matthew B. Myers, â€Å"Why Global Supply Chain Management” [ 3 ]. http://www. epiqtech. com/supply_chain-Global-Management. htm , paragraph 2. [ 4 ]. http://www. epiqtech. com/supply_chain-Global-Management. htm , parahraph 3. [ 5 ]. http://www. epiqtech. com/supply_chain-Global-Management. htm , paragraph 4. [ 6 ]. http://www. epiqtech. com/supply_chain-Global-Management. htm , paragraph 5. [ 7 ]. http://www. epiqtech. com/supply_chain-Global-Management. tm , paragr aph 6. [ 8 ]. McKinsey Global Survey Results, â€Å"Managing global supply chains”, pg 9. [ 9 ]. McKinsey Global Survey Results, â€Å"Managing global supply chains”, pg 5. [ 10 ]. McKinsey Global Survey Results, â€Å"Managing global supply chains”, pg 6. [ 11 ]. Patty Swafford, Dr. Soumen Ghosh, Dr. Nagesh Murthy, „A Model of Global Supply Chain Agility and its Impact on Competitive Performance”, pg 2. [ 12 ]. Hau L. Lee, Seunjing Whang, â€Å"E-business and Supply Chain Integration”, pg 2. [ 13 ]. Hau L. Lee, Seunjing Whang, â€Å"E-business and Supply Chain Integration”, pg. 4.\r\n'