Global Supply Chain Management (GSC)
It is the system to plan, to implement, and to control the operations of the supply chain for multi-country/multi-region with the purpose to satisfy customer requirements as efficiently as possible. Global supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
It encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Global Supply Chain Management integrates supply and demand management within and across companies.
As corporations strive to focus on core competencies and become more flexible, The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners needs the Global Supply Chain Management (GSC) to provide systematic support.
Supply Chain Strategy
Strategic
Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities. Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management Information Technology infrastructure, to support supply chain operations. Where to make and what to make or buy decisions Align Overall Organizational Strategy with supply strategy.
Tactical
Sourcing contracts and other purchasing decisions. Production decisions, including contracting, locations, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone Payments.
Operational
Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. Performance tracking of all activities.
Supply Chain Business Process Integration
Globalization, outsourcing and information technology have enabled many organizations to successfully operate solid collaborative supply networks. As an outcome of globalization and proliferation of multi-national companies, joint ventures, strategic alliances and business partnerships were found to be significant success factors, following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing" practices. Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes.
Supply chain business process integration involves collaborative work between buyers and suppliers, operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows. The key supply chain processes are:
Customer relationship management
Demand management
Product development and Commercialization
Procurement
Order fulfillment
Manufacturing flow management
Supplier relationship management
Product development and commercialization
Returns management
Physical distribution
Outsourcing/partnerships
Performance measurement
Implementation of GSC
Global Supply Chain system (GSC) should be implemented with proper planning, consulting for a large GSC project involves three levels: solution architecture consulting, business process consulting (primarily re-engineering) and technical implementation consulting (primarily programming and tool configuration activity). please feel free to contact us to discuss your needs and requirements.
