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Chapter: Business Science - International Business Management - Production, Marketing, Financial and Human Resource Management of Global Business

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Global Supply Chain Issues

Supply chain management (SCM) is "the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole."

GLOBAL SUPPLY CHAIN ISSUES:

 

Supply chain management (SCM) is "the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole." It has also been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

 

Main functions of Supply Chain Management are as follows:

Inventory Management

 

Distribution Management Channel Management

 

Payment Management Financial Management Supplier Management

 

Transportation Management

Customer Service Management

 

GLOBAL SUPPLY CHAIN MANAGEMENT:


     Through every phase of a product’s lifestyle, global supply chain management professiona ls ensure that customers get the products and s ervices they need and want faster, better a nd more cost-effectively from across town or around the world. They play a critical role to the successful functioning of businesses, healthcare, nonprofit agencies and governments.

 

A "supply chain" refers t o the collection of steps that a company takes to transform raw material components into a final product that is delivered to customers. Typically, supply

 

chain management has fi ve stages: plan, make, source, deliver and return .

 

Every stage of that proc ess involves professional skills that are critical to success, from marketing and logistics t o data management and warehousing.

 

Our GSCM graduates find a wealth of different career tracks that offer both financial

rewards and personal satisfaction.

 

Every successful organization owes some of its success to effective supply ch ain management and logistics.

 

These processes focus on the flow of goods and information from the source of raw materials through the distribution channels to the final consumer, and beyond, to recycling and disposal.

 

In today's competitive environment, managing transportation, inventory, product plans and schedules, and information flows are critical to satisfying customers and creating competitive advantages.

 

Organizations compete globally by working with international suppliers, outsourcing, and marketing to consumers worldwide. This global reality places even more importance on successful supply chain management.

 

The global supply chain management major focuses on global business and prepares students for success. And with the flexibility of multiple campuses and online courses, you can personally tailor your educational experience.

 

Courses provide insight into many subjects, including:

Managing raw materials and finished products

Developing transportation and logistics strategies

 

Merging transportation policies with production and marketing plans Global supply chain analysis and planning

 

MANAGING GLOBAL SUPPLY CHAIN:

 

Globalization is one of those politically charged words that often imply more than it actually means. From the relatively benign “the world is flat” philosophy that suggests offshore factories help stimulate U.S. imports, to the “off shoring costs American jobs” idea that everything can and should be made in the United States, everybody in manufacturing has an opinion on whether globalization is good or bad for their companies and/or their fellow citizens.

 

Some might suggest, in fact, that globalization is a fait accompli. As Daniel Ackerson, chairman and CEO of General Motors Co. (IW 500/4) pointed out at a news conference in 2011, seven out of 10 of all GM vehicles are made outside the United States, and the trend shows no signs of stopping.

 

There’s nothing very new about globalization, though, a concept that basically refers to the practice of sourcing, manufacturing, transporting and distributing products outside of your native country. Its modern application predates the rise of the Internet by a good 40 years, beginning in the early 1950s when container shipping was introduced, making it possible to quickly, efficiently and economically move entire container loads onto ocean vessels at ports of call throughout the world.

 

As the world has gotten flatter and supply chains have gotten longer, the need for companies to follow best practices in global supply chain management has intensified. Gary Miller has a deep familiarity with such a role, having spent 40 years as vice president, global supply chain and chief procurement officer with $23 billion tire manufacturer Goodyear Tire and Rubber Co. (IW 500/54) before taking on the same role in 2008 at A. Schulman Inc. (IW 500/343), a $2.5 billion plastics manufacturer. As Miller explains it, he’s responsible for Schulman’s supply chain and procurement activities to better leverage its worldwide purchasing power, reduce materials inventories, eliminate waste and improve efficiency. The company has 35 facilities globally, with nearly 70% of its revenues derived out of the European market.

 

“We have global customers that we service around the world,” he says. “Europe is a very large region for us, so we have deep relationships with our customers there. As those customers expand around the world, they’re also looking for us to come with them.”

 

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