supply chain

Topics: Logistics, Supply chain management, Supply chain Pages: 36 (6916 words) Published: February 22, 2014
Confirming Pages

P A R T

T H R E E

Supply Chain
Logistics Design
One of the two primary responsibilities of a firm’s logistics management, as established in Chapters 1 and 2, is to participate in supply chain logistics design. Part 3 contains three chapters devoted to various logistics design issues. Chapter 12 establishes the global perspective of today’s business operations. Few firms enjoy the simplicity of conducting business within a single nation. The complexity of globalization has increased as a result of extended operational reach. Given the dynamic nature of contemporary business, it is not unusual for managers to conduct continuous evaluations of their logistics support structure. Chapter 13 focuses on network design. An integrative model is developed and illustrated that combines the temporal and spatial dimensions of logistics into a single theoretical framework. The integration structure provides the basis for process development, trade-off quantification, and integrative measurement. In Chapter 14, network structure is operationalized in terms of methodology and technique to guide logistical systems design. A step-by-step design process provides a guide to deal with channel structure and strategy design and implementation. Chapter 14 also presents an overview of operational planning and analysis tools to assist managers in dealing with logistics operations.

bow77872_ch12_287-301.indd 287

1/8/09 12:31:14 PM

Confirming Pages

C H A P T E R

T W E L V E

Global Supply
Chains
Chapter Outline
Global Economies
Global Supply Chain Integration
Logistics in a Global Economy
Stages of International Development
Managing the Global Supply Chain
Global Sourcing
Rationale for Low-Cost-Country Sourcing
Challenges for Low-Cost-Country Sourcing
Guidelines for Sourcing
Summary

Globalization offers many opportunities and challenges for logistics and supply chain operations and strategies. The opportunities include increasing markets and a wider range of manufacturing alternatives with varying absolute and comparative human and material resource advantages. Some regions of the world can provide significant economies of scale because of their low wages, while other regions offer significant flexibility because of their expertise. The challenges encountered when taking advantage of these benefits include more demanding logistics operating environments, security considerations, and more complex total cost analyses. Chapter 12 discusses the rationale for global supply chains, the stages of global supply chain integration, and concludes with guidelines for making global sourcing decisions.

Global Economies

288

bow77872_ch12_287-301.indd 288

Regardless of size, most firms today include some dimension of global operations. They have materials or products that are sourced globally or they have global customers wanting to purchase from them. In many cases, firms are involved in both global sourcing and delivery. While many believe that firms operate globally, particularly for sourcing and manufacturing, to obtain the lowest cost, there are many other reasons as well. This section identifies some of the primary reasons that firms develop global capabilities. Table 12.1 lists the primary objectives firms use to justify globalization. While many believe that the primary motivation for shifting manufacturing and supply chain operations is low-cost resources and labor, the rationale in many cases is one of the others cited in the table. For example, although it is believed that many firms moved production to Asia and India to access lower production wages, their primary motivation was often to

1/8/09 12:31:15 PM

Confirming Pages

Chapter 12

TABLE 12.1
Rationale for
Globalization

Objective
Increase revenue

Achieve economies of scale
Reduce direct cost

Advance technology

Reduce firm’s global tax liability

Reduce market access uncertainty

Enhance...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Dell(Supply Chain) Essay
  • Supply Chain Logistics Essay
  • THE IMPORTANCE OF INFORMATION SYSTEMS IN GLOBAL SUPPLY CHAIN MANAGEMENT. Essay
  • Supply Chain Issues at Whirlpool Essay
  • Starbucks
  • Hul Supply Chain Essay
  • Supply Chain Management Essay
  • Supply Chain Essay

Become a StudyMode Member

Sign Up - It's Free