A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. In the instance of global supply chains, it is extended around the world any company that uses parts and services from another factory overseas faces issues with global supply chain. Encompassing both practical and strategic perspectives, it takes a truly global perspective, recognising the transnational nature of logistics activities in todays world. Mentzer and others published why global supply chain management. We recommend the definition of supply chain management developed and used by the global supply chain forum. This is a brief introductory tutorial that explains the methodologies applied in the rapidly growing area of supply chain management in.
The global supply chain finance forum1 represents a number of industry associations with members around the world, and it has been a core principle of this initiative, that the activities of the team be collaborative, inclusive and consensusbased. The supply chain management scm profession has continued to change and evolve to fit the needs of the growing global supply chain. Global supply chain management linkedin slideshare. Dmitry ivanov, alexander tsipoulanidis, jorn schonberger. Global logistics and supply chain management, 3rd edition. The value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers. Supply chain management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying. Global supply or production chains gscs, where cost reduction strategies result in goods often being produced with intermediate inputs originating from several countries, are now common in many industries and extend over to an increasing number of. Supply chain management efforts enhance and improve efficiencies throughout every stage of the process, making it quicker, easier, more affordable and valuable to both the company and end users. Supply chain finance is defined as the use of financing and risk mitigation practices and techniques to optimise the management of the working capital and liquidity invested in supply chain processes and transactions. Zailani2 1 2 school of management, graduate school of business. A study of the brazilian amazon shows how supplychain initiatives in the beef and soy industries, interacting with economic, social, and policy drivers, can slow deforestation of one of the worlds major sources of biodiversity and carbon sequestration see nepstad et al. Encompassing both practical and strategic perspectives, it also takes a truly global perspective, recognising the transnational nature of. Global supply chain an overview sciencedirect topics.
It is the worldwide system that a business uses to produce products or services. Global supply chain strategy is about architecturing your product flows in an optimal way to satisfy all the customers and suppliers along the chain. Issues in an increasingly complex environment find, read and cite all the. Icelandic volcanic ash clouds have brought to light the risks inherent with the modern global supply chain. Global supply chain management has many benefits for a company. The supply chain represents all the steps required to get the. Highlights supply chain definition logistics definition history of supply chain objectives, importance, measuring factors principles of supply chain decision phases in supply chain process views supply chain drivers supply chain macro processes in a firm key issues of supply chain bull whip effect operation strategies imperatives for success. It enables business processes to be organized using international organizations that be reduced, companies can react rapidly to unforeseen market conditions, transport strategies can be improved, costs can be minimized and waste can be eliminated. It provides a single view for tracking information, material and or cost by monitoring key dimensions in a global supply chain, such as inventory positions or shipment intransit status and realtime order movements in order to make informed and fact based decisions.
Cscmp supply chain management definitions and glossary. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Later in the 1980s, the term supplychain management scm was developed to align the customer need into the key business processes, starting from end user. Providing readers with a working knowledge of global supply chain and operations management, this textbook can be used in core, special and advanced classes. But why are some global supply chains more effective than others. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. For example there are such links in the supply chain as logistics,distribution,materials management, inventory control and freight in addition to the procurement function. Key supplychain activities include production planning, purchasing, materials management, distribution, customer service, and sales. Supply chain leadership distinctive approaches to innovation, collaboration, and talent alignment 1 imagine youre the leader of a global business maybe you are and an exciting new opportunity arises perhaps a new market opens up just as your product development team is engineering a breakthrough product. This is global supplychain management, chapter 9 from the book global strategy index. With the supply chain covering a broad range of disciplines, the definition of what is a. Sscm encourages governance practices at all levels of. Supply chain management in the global context econstor.
A global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas. The processes include production, processing, distribution, consumption and disposal. Modern supply chains have proven cost effective and efficient alternatives to tradi. Miscommunication between global partners can lead to severe supply chain disruptions. Contributors, all supply chain experts with real world experience, clearly define supply chain management, identify those factors that contribute to effective supply chain management, and suggest how the adoption of a supply chain management approach can affect business strategy and corporate performance. International supply chain management zdispersed over a larger geographical area zoffers many more opportunities than just the domestic supply chain zrisk factors are also present 104 international supply chains zinternational distribution systems zmanufacturing still occurs domestically, but distribution and typically some marketing take. A global supply chain definition is pretty straightforward. Global supply chain is a worldwide network of suppliers, manufacturers, warehouses, distribution centers, and retailers through which raw materials are acquired, transformed and delivered to customers.
Pdf basics of supply chain and operations management. The publication principles of global supply chain management is a very useful book for students in the field of supply chain management studying in english and. Global logistics and supply chain management, now in its third edition, provides essential reading for anybody studying scm and logistics. Global supply chain and operations management springerlink. Scf is typically applied to open account trade and is triggered by supply chain events. At the same time, the need for globalization requires that the solution of scm problems be performed in an international context as part of what we refer to as global supply chain management gscm. The gscf defines supply chain management as the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. This dynamic promotes global economic convergence and integration. Understanding goals a food supply chain or food system refers to the processes that describe how food from a farm ends up on our tables. This chapter also consists of theories of global supply chains operations and strategic scope of view on management of supply chain in global.
Understanding your value chain, and how china fits into it, can lead to tremendous tax savings. Global supply chains by definition are very large and include a number of vendors, distribution centers, suppliers, buyers, manufacturing plants, and logistics service providers. Strategic global supply chains by tomas hult supply chain management has been in vogue for the last decade. Now, in an era of outsourcing and offshoring, global supply chains are the keys to firms success. In the future,there will be new aspects to supply chain management that become commonplace. Other dimensions must be considered and balanced when designing the supply chain, including. Definition of sustainable supply chain management sscm. The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid and seniorlevel managers across a broad spectrum of companies and industries. Byu sc brad otto, jordan white, grant thorsen, christian groom, kevin mcavoy. Supply chain definition and meaning collins english. So it is important that smooth operations of every link in the supply chain should be taken care of. Even the council of supply chain management professional offers its definition with the caveat. When setting up global operations, the learning curve is much steeper, so patience is required when expecting a payout 2.
That sounds simple enough, yet a global supply chain can be anything but. Global supply chain finance forum home of supply chain. Finally, cost is not the only element of a supply chains performance, as well discuss later. Language and different units of measure are not the only problems companies face when working globally. What is sustainable supply chain management sscm igi. A supply chain the flow of physical goods and associated information from the source to the consumer. Two broad, contradictory trends are at work in the global economy.
Pdf principles of global supply chain management researchgate. Rather, first, it is the integration and coordination of the strategic leverage points embedded in those supply chain functions. Global logistics and supply chain management, now in its second edition, is essential reading for students studying scm and logistics. As matching supply and demand is a core aspect of tactical planning, the book focuses on it before turning to the allocation of resources for fulfilling customer demands.
Green supply chain management integrates ecofriendly aspects into conventional supplychain management practices, in order to make the every activity of the value chain. Definition of supply chain management zsupply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Recent catastrophes such as the japanese tsunami, thailand floods, superstorm sandy and. It is the design and management of a system, that controls the flow of materials into, through and out of the international corporation. The global supply chain forum gscf developed a definition of supply chain management cooper, m et al 1997. Supply chain management is the integration of key business processes from end user through. Sscm may be perceived as the proper management of related environmental, social, and economic impacts in constructing and maintaining effective and efficient global supply chains. In conjunction with identifying these challenges, will also suggest few corrective processes.
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