Global Supply Chain And Operations Management: ...
The second edition of this textbook comprehensively discusses global supply-chain and operations management, combining value creation networks and interacting processes. It focuses on the operational roles in the networks and presents the quantitative and organizational methods needed to plan and control the material, information and financial flows in the supply chain. Each chapter starts with an introductory case study, and numerous examples from various industries and services help to illustrate the key concepts. The book explains how to design operations and supply networks and how to incorporate suppliers and customers. It also examines matching supply and demand, which is a core aspect of tactical planning, before turning to the allocation of resources for fulfilling customer demands.
Global Supply Chain and Operations Management: ...
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Providing readers with a working knowledge of global supply-chain and operations management, with a focus on bridging the gap between theory and practice, this textbook can be used in core, special and advanced classes. It is intended for broad range of students and professionals involved in supply-chain and operations management.
In commerce, global supply-chain management is defined as the distribution of goods and services throughout a trans-national companies' global network to maximize profit and minimize waste.[1] Essentially, global supply chain-management is the same as supply-chain management, but it focuses on companies and organizations that are trans-national.
Global supply-chain management has six main areas of concentration: logistics management, competitor orientation, customer orientation, supply-chain coordination, supply management, and operations management.[2] These six areas of concentration can be divided into four main areas: marketing, logistics, supply management, and operations management.[2] Successful management of a global supply chain also requires complying with various international regulations set by a variety of non-governmental organizations (e.g. The United Nations).
Global supply-chain management can be impacted by several factors who impose policies that regulate certain aspects of supply chains. Governmental and non-governmental organizations play a key role in the field as they create and enforce laws or regulations which companies must abide by.[3] These regulatory policies often regulate social issues that pertain to the implementation and operation of a global supply chain (e.g. labour, environmental, etc.). These regulatory policies force companies to obey the regulations set in place which often impact a company's profit.
Operating and managing a global supply chain comes with several risks. These risks can be divided into two main categories: supply-side risk and demand side risk.[4] Supply-side risk is a category that includes risks accompanied by the availability of raw materials which effects the ability of the company to satisfy customer demands.[4] Demand-side risk is a category that includes risks that pertain to the availability of the finished product.[4] Depending on the supply chain, a manager may choose to minimize or take on these risks.[4]
Successful global supply-chain management occurs after implementing the appropriate framework of concentration, complying with international regulations set by governments and non-governmental organizations, and recognizing and appropriately handling the risks involved while maximizing profit and minimizing waste.
Marketing should be emphasized by global supply chain managers to create customer value, satisfaction, and loyalty. Customer value, satisfaction, and loyalty lead to improved profit margins, which in turn leads to overall corporate growth.[5] Managers need to think about their strategies and the implication of the strategy on the entire supply chain. One market strategy that is commonly used among businesses with global supply chains is the customer perspective strategy.
There are four common and critical challenges that managers face when attempting to design and implement a marketing strategy that best relates to customer values. The first issue that managers face is the challenge of understanding exactly what customers value in a global supply chain.[5] Understanding customer values in a global supply chain focuses on the task of identifying what supply streams customers value most.
The second challenge is having to understand the constant changes in customer values throughout global supply chains.[5] Since customers are constantly changing what they value, staying ahead of the trend and attempting to predict changing values is increasingly difficult. The third challenge is having to deliver values in a new environment that has never seen this level of marketplace.[5] The global market is becoming increasingly prevalent which companies are taking advantage of, therefore the challenge of attempting to deliver values in a country/region that has never been exposed to a marketplace such as this before arises.
When managing a global supply chain, it is important to place emphasis on logistics performance as there has been an increase in business-to-business international marketing.[6] Logistics is inherently difficult and complex for a global supply chain as it deals with trade regulations, shipping distances, and cross-currency issues. Companies and/or organizations who place an emphasis on logistics management can find themselves with a serious competitive advantage as it has a clear visible impact on customers.[6]
Supply management deals with the development and management of the critical business and supplier relationship.[7] Some companies will use supply chain management software to help manage the flow of products and information.[8] Notable companies that provide supply management services include Oracle, Epicor, Infor, and IBM.[9] As the market becomes progressively global, the strategy of outsourcing suppliers is increasingly used. Outsourcing suppliers has several benefits for a business if they can effectively develop the relationship. In 2020 the global supply chain management market was valued at $18.7 million and was projected to reach $52.6 million by 2030.[9]
Closs and Mollenkopf's "21st-century logistics framework" is a global supply-chain management theory that was developed at Michigan State University and was introduced to the business world in 1999.[10] The framework identifies six business competencies that are necessary to operate a global supply chain, with multiple underlying capabilities for each competency which influence management decisions. The six competencies are:
Information management, internal communication, connectivity, and collaborative forecasting and planning are the capabilities that encompassed by technology and planning integration. The ability to use seamless transactions across the entire chain to allocate resources throughout the chain is called information management. Internal communication refers to the ability to communicate within the business in appropriate manner. The ability to communicate and exchange information between the business and the external supply chain partner is called connectivity. Collaborative forecasting and planning refers to the ability to collaborate with customers to identify and develop shared visions.
The capabilities that underlie measurement integration are: functional assessment, comprehensive metrics, and financial impact. Functional assessment refers to the ability to develop and implement an appropriate performance measurement tool. Comprehensive metrics refers to the ability to implement cross-business performance standards. Financial impact refers to the direct link between overall supply chain performance and the results of the financial measurement.
The capabilities that underlie relationship integration are: role specificity, guidelines, information sharing, and gain/risk sharing. Role specificity refers to the ability to clearly define leadership and establish a set of shared and individual responsibilities. Guidelines refers to the ability to create and implement policies/rules that govern everyday interactions. Information sharing refers to the willingness to share important information (often including financial, technical, or strategic information) throughout the supply chain. Gain/risk sharing refers to the appropriately divide and allocate rewards/penalties.
The 21st-century logistics framework allows managers to identify and implement the most important underlying capabilities that are encompassed in the six business competencies. The framework gives managers the freedom to decide what they believe to be the most important capabilities that need to be implemented to run a successful global supply chain.[10]
The human collaboration theory suggests that there is strong evidence to prove that investment in supply-chain management have the largest impacts when they focus on enabling supply chain collaboration. This management theory focuses on the manager's ability to invest in and promote human collaboration between employees throughout the global supply chain.[11]
Human collaboration is defined as the use of skills through harmonization of individuals, teams and organizations to achieve greater things not achievable by an individual person.[11] The human collaboration theory/framework lays out four key components. The first component deals with the forces that drive change, the second focuses on people-technology-process assets that create network collaboration, the third deals with resisting forces which encourage people to resist collaboration, and the fourth component looks at the desired collaboration performance.[11] The theory states that to implement and operate a successful global supply chain, a manager must understand and use these components.
According to the theory's creators, a manager must follow four steps to transform their network into a more collaborative network. The first step is to recognize that to be competitive the company will require innovations which can be proposed by people outside the corporate boundary and therefore to access these people they need to be more collaborative with external partners. They then must alter their views of achieving collaboration by acknowledging the different types of collaboration (transactional, co-operative, coordinated, synchronized). Next, a manager must develop a collaborative plan that achieve the goals he/she sets out to achieve. Finally a manager must develop the right controls to ensure the goals/mission can be met. If a manager follows the recommendations made by this theory, then they will have implemented a proper global supply chain that focuses on human collaboration which in turn will yield better results. 041b061a72