Chapter 2 International Supply Chain Management

Gustavo Herrera
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Gustavo Herrera
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Chapter 2 International Supply Chain Management
1 Containers

Annotations:

  • Introduced in 1956 but had impact in international trade until 1970´s. DHL: 1969 Federal Express (FedEx): 1973 Air transportation.
2 Customer Satisfaction

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  • -Accurate (right parts, right quantity). -Complete (no back-ordered parts). -Packaging appropriate. -Specific time frame.
2.1 Materials Requirement Planning (MRP)

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  • Management tool to determine what to produce and what quantity, in function if what it sells to its customers.
2.2 Just-in-time

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  • Management philosophy (Japan 1970´s-1980´s)->planning the manufacturing of goods in such a way that they are produced just before they are needed in the next step of the assembly process.
2.3 Distribution Resources Planning (MRP)

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  • Management tool that allows a retail firm to determine what to order from its suppliers and in which quantity, in function of what it sells to its customers. 
3 Transformation into strategic advantage
3.1 IBM six greatest challenges
3.1.1 Cost containment

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  • +Fuel Cost +Need for flexibility +Expectations of internal and external customers
3.1.2 The visibility to the supply chain

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  • Management of information that is generated in the supply chain (analized and distributed right).
3.1.3 Risk management
3.1.4 Increasing customer demands

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  • -Delivery performance -Cost containment -Information availability -Levels of service
3.1.5 The globalization of the economy
3.1.6 Sustainability efforts
4 Logistics & Supply Chain Management
4.1 Supply Chain Management
4.1.1 Logistics

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  • Physical aspects of the movement of goods from supplier and customers.
4.1.1.1 International logistics
4.1.1.1.1 Elements
4.1.1.1.1.1 The environment

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  • -Language and culture.  -Differences in the infrastructure of international logistics.
4.1.1.1.1.2 Decisions about transportation

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  • -Distances. -Modes of transportation. -Different carriers. -Transportation documents. -Transit times.
4.1.1.1.1.3 Intermediaries involved

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  • -Banks. -Insurance companies. -Freight forwarders. -Goverments.
4.1.1.1.1.4 Risks and hazards

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  • -Packaging
4.1.1.1.1.5 International insurance
4.1.1.1.1.6 International means of payment
4.1.1.1.1.7 Terms of trade
4.1.1.1.1.7.1 Incoterms
4.1.1.1.1.8 Crossing of borders
4.1.1.1.1.9 Sustainability
4.1.2 International Supply Chain Management

Annotations:

  • Integrates domestic and international logistics. Management of relationships with suppliers and customers (domestic and foreign).
5 Economic Importance of Logistics

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  • Percentage of GDP spent on logistical: USA->8.5% GDP China-> 18.3% GDP World-> 10.4%
5.1 International reverse Logistics

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  • Management of products, packaging returned by customers.
5.2 International logistics

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  • International logistics represents the 15% of the total volume of international trade
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