Quản trị kinh doanh - Chapter 11: Global supply chain procurement and distribution

Global Supply ChainProcurement and DistributionChapter 111Lecture OutlineProcurementE-ProcurementDistributionTransportationThe Global Supply ChainCopyright 2011 John Wiley & Sons, Inc.11-2ProcurementThe purchase of goods and services from suppliersCross enterprise teamscoordinate processes between a company and its supplierOn-demand (direct-response) deliveryrequires the supplier to deliver goods when demanded by the customerContinuous replenishment supplying orders in a short period of time according to a predetermined scheduleCopyright 2011 John Wiley & Sons, Inc.11-3OutsourcingSourcingselection of suppliersOutsourcingpurchase of goods and services from an outside supplierCore competencieswhat a company does bestSingle sourcinga company purchases goods and services from only a few (or one) suppliersCopyright 2011 John Wiley & Sons, Inc.11-4Categories of Goods and ServicesCopyright 2011 John Wiley & Sons, Inc.11-5E-ProcurementDirect purchase from suppliers over the Internet, by using software packages or through e-marketplaces, e-hubs, and trading exchangesCan streamline and speed up the purchase order and transaction processCopyright 2011 John Wiley & Sons, Inc.11-6E-ProcurementWhat can companies buy over the Internet?Manufacturing inputs the raw materials and components that go directly into the production process of the productOperating inputs maintenance, repair, and operation goods and servicesCopyright 2011 John Wiley & Sons, Inc.11-7E-ProcurementE-marketplaces (e-hubs) Websites where companies and suppliers conduct business-to-business activitiesReverse auctionprocess used by e-marketplaces for buyers to purchase items; company posts orders on the internet for suppliers to bid onCopyright 2011 John Wiley & Sons, Inc.11-8DistributionEncompasses all channels, processes, and functions, including warehousing and transportation, that a product passes on its way to final customerOrder fulfillmentprocess of ensuring on-time delivery of an orderLogistics transportation and distribution of goods and servicesDriving force today is speedParticularly important for Internet dot-comsCopyright 2011 John Wiley & Sons, Inc.11-9Distribution Centers (DC)and WarehousingDCs are some of the largest business facilities in the United StatesTrend is for more frequent orders in smaller quantitiesFlow-through facilities and automated material handlingPostponementfinal assembly and product configuration may be done at the DCCopyright 2011 John Wiley & Sons, Inc.11-10Warehouse Management SystemsHighly automated system that runs day-to-day operations of a DCControls item putaway, picking, packing, and shippingFeaturestransportation managementorder managementyard managementlabor managementwarehouse optimizationCopyright 2011 John Wiley & Sons, Inc.11-11A WMSCopyright 2011 John Wiley & Sons, Inc.11-12Vendor-Managed InventoryManufacturers generate orders, not distributors or retailersStocking information is accessed using EDIA first step towards supply chain collaborationIncreased speed, reduced errors, and improved serviceCopyright 2011 John Wiley & Sons, Inc.11-13Collaborative Logistics and Distribution OutsourcingCollaborative planning, forecasting, and replenishment create greater economies of scaleInternet-based exchange of data and informationSignificant decrease in inventory levels and costs and more efficient logisticsCompanies focus on core competenciesCopyright 2011 John Wiley & Sons, Inc.11-14TransportationRaillow-value, high-density, bulk products, raw materials, intermodal containersnot as economical for small loads, slower, less flexible than truckingTruckingmain mode of freight transport in U.S.small loads, point-to-point service, flexibleMore reliable, less damage than rails; more expensive than rails for long distanceCopyright 2011 John Wiley & Sons, Inc.11-15TransportationAirmost expensive and fastest, mode of freight transportlightweight, small packages <500 lbshigh-value, perishable and critical goodsless theftPackage Deliverysmall packagesfast and reliableincreased with e-Businessprimary shipping mode for Internet companiesCopyright 2011 John Wiley & Sons, Inc.11-16TransportationWaterlow-cost shipping modeprimary means of international shippingU.S. waterwaysslowest shipping modeIntermodalcombines several modes of shipping-truck, water and railkey component is containersPipelinetransport oil and products in liquid formhigh capital cost, economical uselong life and low operating costCopyright 2011 John Wiley & Sons, Inc.11-17Internet Transportation ExchangesBring together shippers and carriersInitial contact, negotiations, auctionsExampleswww.nte.comwww.freightquote.com Copyright 2011 John Wiley & Sons, Inc.11-18Global Supply ChainInternational trade barriers have fallenNew trade agreementsTo compete globally requires an effective supply chainInformation technology is an “enabler” of global tradeCopyright 2011 John Wiley & Sons, Inc.11-19Obstacles to Global Chain TransactionsIncreased documentation for invoices, cargo insurance, letters of credit, ocean bills of lading or air waybills, and inspectionsEver-changing regulations that vary from country to country that govern the import and export of goodsTrade groups, tariffs, duties, and landing costsLimited shipping modesDifferences in communication technology and availabilityCopyright 2011 John Wiley & Sons, Inc.11-20Obstacles to Global Chain TransactionsDifferent business practices as well as language barriersGovernment codes and reporting requirements that vary from country to countryNumerous players, including forwarding agents, custom house brokers, financial institutions, insurance providers, multiple transportation carriers, and government agenciesSince 9/11, numerous security regulations and requirementsCopyright 2011 John Wiley & Sons, Inc.11-21Duties and Tariffs Proliferation of trade agreementsNations form trading groupsno tariffs or duties within groupcharge uniform tariffs to nonmembersMember nations have a competitive advantage within the groupTrade specialistsinclude freight forwarders, customs house brokers, export packers, and export management and trading companiesCopyright 2011 John Wiley & Sons, Inc.11-22Duties and TariffsCopyright 2011 John Wiley & Sons, Inc.11-23Landed CostTotal cost of producing, storing, and transporting a product to the site of consumption or another portValue added tax (VAT)an indirect tax assessed on the increase in value of a good at any stage of production process from raw material to final productClicker shockoccurs when an ordered is placed with a company that does not have the capability to calculate landed costCopyright 2011 John Wiley & Sons, Inc.11-24Web-based International Trade Logistic SystemsInternational trade logistics web-based software systems reduce obstacles to global tradeconvert language and currency provide information on tariffs, duties, and customs processesattach appropriate weights, measurements, and unit prices to individual products ordered over the Webincorporate transportation costs and conversion ratescalculate shipping costs online while a company enters an order track global shipmentsCopyright 2011 John Wiley & Sons, Inc.11-25Recent Trends in Globalization for U.S. CompaniesTwo significant changespassage of NAFTAadmission of China in WTOMexicocheap labor and relatively short shipping timeChinacheaper labor and longer work week, but lengthy shipping time Major supply chains have moved to ChinaCopyright 2011 John Wiley & Sons, Inc.11-26China’s Increasing Rolein the Global Supply ChainWorld’s major source of supplyAbundance of low-wage laborWorld’s fastest growing marketRegulatory changes have liberalized its marketIncreased exporting of higher technology productsCopyright 2011 John Wiley & Sons, Inc.11-27Models in Doing Business in ChinaEmploy local third-party trading agentsWholly-owned foreign enterpriseDevelop your own international procurement officesCopyright 2011 John Wiley & Sons, Inc.11-28Challenges of Sourcing from ChinaGetting reliable information in more difficult than in the U.S.Information technology is much less advanced and sophisticated than in the U.S.Work turnover rates among low-skilled workers is extremely highCopyright 2011 John Wiley & Sons, Inc.11-29Global Terrorism and Global ChainsIncrease security measuresadded time to supply chain schedulesIncreased supply chain costs24 hours rules for “risk screening”extended documentationextend time by 3-4 daysInventory levels have increased 5%Other costs include:new people, technologies, equipment, surveillance, communication, and security systems, and training necessary for screening at airports and seaports around the worldCopyright 2011 John Wiley & Sons, Inc.11-30Copyright 2011 John Wiley & Sons, Inc.11-31Copyright 2011 John Wiley & Sons, Inc.All rights reserved. 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