Global Supply Chain Management

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Global Supply Chain ManagementTomas Hult Director, International Business Center (MSU-CIBER) Associate Professor of Marketing and Supply Chain Management Michigan State University Email: hult@msu.edu

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It’s All About Leverage Consider how to turn an aircraft. Aircrafts are steered through the use of a system of ailerons on the wings and the rudder at the tail of the aircraft. In comparison to the aircraft, the ailerons and the rudder are very small; however, leverage allows them to turn the large aircraft. In other words, putting the right combination of a little leverage on the right places allows incredible maneuvering.

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What is a Supply Chain? Supply chains are linkages of partially discrete, yet interdependent entities that collectively transform raw materials into finished products. Supply chains connect the functions of inbound activities (such as purchasing) with outbound activities (such as logistics and “place” activities).

A. . . . . . . . . . . . . . . End Customer

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Formal Definition of a Supply Chain A supply chain is a “network of facilities and activities that performs the functions of product development, procurement of material from suppliers, the movement of materials between facilities, the manufacturing of products, the distribution of finished goods to customers, and aftermarket support for sustainment” (Mabert and Venkataraman 1998).

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Supply Chain UtilitiesTIME PLACE POSSESSION

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Network of Relationships

Finland Sweden Denmark Norway Netherlands Germany

Iceland

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Ford ExampleBelfastCarburetors and distributors

EnfieldInstruments, fuel and water gauges, plugs

BasildonRadiators, water pump assembly, engine components

TreforestSpark plug insulators

GenkBody panels, road wheels

LeamingtonFoundry production of engine components

Wü lfrathTransmission parts, engine components

DagenhamFinal assembly

CologneDie-cast transaxle casings, gear and engine components

BordeauxTransmissions

ValenciaFinal assembly

SaarlouisFinal assembly

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Types of International Sourcing StrategySourcing Intra-Firm Sourcing OutsourcingDomestic International Domestic International

Domestic In-House Sourcing

Offshore Subsidiary Sourcing

Domestic Purchasing Arrangement

Offshore Outsourcing

A company procures major components inhouse by procuring them domestically

A company procures major components from its foreign subsidiary

A company buys major components from independent suppliers at home

A company buys major components from independent suppliers internationally

Source: Kotabe (2000)

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International Supply Chain Organization A supply chain organization is a relatively enduring interfirm cooperative that uses resources from international participants to accomplish shared and independent goals of its members.

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International SCM Theory

Actor Bonds

Resource Ties

Activity Links

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National Competitive Advantage

Firm Strategy, Structure, and Rivalry

The conditions in the nation governing

how companies are created, organized, and managed and the nature of domestic rivalry.

Factor EndowmentsA nation’s position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry.

Demand Conditions

The nature of home demand for the industry’s product or service.

Related and Supporting Industries

The presence or absence in a nation of supplier industries and related industries that are internationally competitive.Source: Porter 1990

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The Value Chain Michael Porter, professor at Harvard Business School, uses the value chain as a systematic means of displaying and categorizing business activities. The term value chain means that at each stage of the order-to-delivery system, value is added to the product or service.

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Porter’s Value ChainFirm Infrastructure

Support ActivitiesINBOUND LOGISTICS

Human Resource Management Technology Development

PROCUREMENTInformation Technology OUTBOUND LOGISTICS

Marketing & Sales

Primary ActivitiesSource: Porter 1985

Operations

Service

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Primary Activities Primary activities are the five basic functions needed to physically produce a product or service, deliver and market it to buyers, and support it after the sale. Each contributes value in specific ways.– Inbound logistics refers to activities/actions required before physical production of a product can begin or before service can be performed (inputs such as materials handling, warehousing, inventory control, vehicle scheduling and returns to suppliers).– Outbound logistics refers to all activities from the p …… 此处隐藏：4423字，全部文档内容请下载后查看。喜欢就下载吧 ……