Global supply

Global Supply Chain Management

International session
Lima, January 10th, 2011 Dr Xavier Brusset Professor in Logistics and Supply Chain Management ESSCA, France xavier.brusset@essca.fr
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Syllabus
• • • • • • • • • • • Introduction to Supply Chain Management Networks and alliances Infrastructure and its influence on Supply Chains Strategic drivers Third party logistics Reverse logisticsRetail logistics Efficient/Reactive Robust / Lean Risk Management Coordination and collaboration, information management

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Introduction to Supply Chain Management
Session 1 Monday, January 10th

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Learning goals
• Definition of the concept of supply chain • Major functions and characteristics of a Supply Chain • How and why are alliances and networks formed • A first approach of thegeography of logistics in Europe • Understanding the necessities of visibility in a supply chain

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Plan
• • • • Introduction to supply chain management Networks and alliances Infrastructure and its influence Visibility in a logistics chain

Definition 1

Suppliers

Manufacturers

Distributors

Retailers

Customers

Transporters

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Definition 2
Suppliers ManufacturersWarehouses & Distribution Centers Customers

Transportation Costs Material Costs Manufacturing Costs

Transportation Costs Inventory Costs

Transportation Costs

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Flow management
• Intra-firm:
– Work in Progress, material, production, order planning

• Inter-firm : external logistics
– Inbound : upstream; external
• Procurement

– Outbound : downstream; external
• • • •Warehousing Distribution Transport Sales

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Supply-chain management is a total system approach to managing the entire flow of information, materials, and services from raw-material suppliers through factories and warehouses to the end customer, and so satisfy him !

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Flow

Customer

Order to wholesaler

Distribution Center

Manufacturer plans

Supplier delivers

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5Replenishment cycle
Customer order Retail order to supplier

Delivery to customer Retail order received by retailer

Retail order fulfillment

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Cycle view
Customer Customer order cycle Retailer Pull Process Customer order point

Replenishment cycle Distributor Manufacturing cycle

Push Process

Manufacturer Procurement cycle

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Lead time

Lead time: the gap between theplacement of an order and its reception

Order placed

Order delivered to customer

Production process

Examples?

Lead time
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Plan
• • • • Introduction to supply chain management Networks and alliances Infrastructure and its influence Visibility in a logistics chain

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Alliances as dyads
Background and purpose Alliances as dyads Alliances as networks Managing alliances

15What is an alliance?
What purpose is it for?

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Background and purpose
• Some changes in today’s markets influence the need for alliances
– Internationalization and globalization – Expanding use of IT – Increased demand for organizational and individual competencies and capabilities – Shorter product life cycle – Time to market cycle time – Investor pressure on financial returnsThe Geographies of Cyberspace and transportation, Maggie Cusack, 2002

Give me examples of alliances!

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Global logic of alliances
• To compete in the global arena, you incur fixed costs • With enough time and money, you can do everything yourself (but who has enough?). • Having control does not necessarily mean better management

Kenichi Ohmae, HBR, March-April 1989

Basicmotives for alliances
• Transaction costs • Bargaining costs • Enhance competitive positioning and market power • Technological knowhow transfer (Honda & Rover • Managerial knowhow transfer • Organizational / Cultural blend (melting pot)

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Classification of alliances
• • • • • Degree of commitment and integration Function based Formal – informal Symmetry – asymmetry (including power...