SGM3 Global Supply Chains: Key Drivers PDF

SGM3 Global Supply Chains Key Drivers of Supply Chains Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Global Supply Chains For more see: Venkataraman, Supply Chain Management, 1e. © 2023 SAGE Publishing. Berner Fachhochschu...

SGM3 Global Supply Chains Key Drivers of Supply Chains Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Global Supply Chains For more see: Venkataraman, Supply Chain Management, 1e. © 2023 SAGE Publishing. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences. Global Supply Chains (1 of 5) Supply chain: a chain of interconnected organizations. Global supply chains: global networks of interconnected organizations. Primary objective of global supply chain management: To create net value via different activities. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 3 Global Supply Chains (2 of 5) Value chain: value added to product as it progresses to various supply chain stages. Managing global supply chains as an overwhelming issue for many businesses. COVID-19 pandemic caused disruptions to global supply chains. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 4 Global Supply Chains (3 of 5) What Is Global Supply Chain Management? Approaches to efficiently and fully integrate global network of organizations. Need to deal with new challenges and decide on outsourcing plan. Need to contend with logistical issues. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 5 Global Supply Chains (4 of 5) What Is Global Supply Chain Management?  Steady shrinking in manufacturing share of the global economy of Western countries.  Study of Boston Strategies on Western manufacturers’ survival.  Western manufacturers stay afloat in business due to higher productivity.  Changes to be implemented to prosper in highly competitive environment. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 6  Global Supply Chains (5 of 5) What Is Global Supply Chain Management? Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 7 Baldwin 2024 Baldwin 2024  Global Supply Chain Structures and Partners (1 of 5) Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 10. Global Supply Chain Structures and Partners (2 of 5) Firsttier suppliers: provide products directly to primary organization. Second tier suppliers: firms that support first-tier suppliers’ production processes. Storage: use of warehouses to store products, components, or materials. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 11 Global Supply Chain Structures and Partners (3 of 5)  Wholesalers and retailers:  Wholesalers: firms who receive goods directly from the manufacturers and sell to retailers.  Retailers: sell the goods to end consumers.  Multichannel systems: availability of more than one channel of distribution for customer.  Final consumers: “end users” of the product. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 12 Global Supply Chain Structures and Partners (4 of 5) Logistics  Plays key role after procuring raw materials and producing finished goods.  Involves multitier suppliers, agents, and agencies.  Reverse logistics:  Movement of goods from final customer to distributor or manufacturer. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 13  Examples of Global Supply Chains: Apple’s Supply Chain Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 14  Decisions in Supply Chain Management (1 of 2) Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 15 Decisions in Supply Chain Management (2 of 2) Points to consider regarding the decisions: Strategic decisions are interrelated. Decisions can affect other downstream decisions that must be made. Need to examine decisions at the strategic, tactical, and operational levels for alignment. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 16  Photo by Mindspace Studio on Unsplash Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 17 Key drivers of supply chains: Globalization For more see: Venkataraman, Supply Chain Management, 1e. © 2023 SAGE Publishing. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences The Globalization of Business (1 of 7) Global economy has led to direct interaction between global customers and companies. Globalization: ability of businesses to operate anywhere in the world. Allows both large and small businesses to meet needs of global consumers. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 19 Phases of Globalization Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences The Death of Distance In This Time Period... Fastest Transportation At a Speed of... Was Via 1500 to 1840s Human-powered ships 10 miles per hour and horse-drawn carriages 1850 to 1900 Steamships 36 miles per hour Steam locomotive trains 65 miles per hour Early 1900s to today Motor vehicles 75 miles per hour Propeller airplanes 300-400 miles per Jet aircraft hour 500-700 miles per hour Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences The Globalization of Business (2 of 7) Drivers of Globalization Lower costs, entry into global markets. Ability to respond quickly to changes in demand. Reliable sources of supply. Access to the latest trends and state-of- the-art technologies. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 22 The Globalization of Business (3 of 7) Drivers of Globalization Formation of the European Union. Led to the requirement of strict quality and environmental standards for companies. North American Free Trade Agreement (TMEC/USMCA): established a free-trade zone. World Trade Organization: expanded the scope of the rules of international trade. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 23 The Globalization of Business (4 of 7) Offshoring and Outsourcing Offshoring: Company gets work done in another country but has full control over operations. Benefits: lower cost, a larger pool of skilled people, and so on. Risks: transfer of jobs to other countries, geopolitical risk, and so on. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 24 The Globalization of Business (5 of 7) Offshoring and Outsourcing Nearshoring: Company gets work done in geographically closer country. Benefits: operation in same time zone, fewer cultural differences, and so on. Risks: fewer providers, higher costs, and potential cultural differences. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 25 The Globalization of Business (6 of 7) Offshoring and Outsourcing  Outsourcing:  Hiring a third party on a contractual basis.  Enables company to focus on core competencies.  Risks: loss of sensitive information and confidentiality, poor quality, and so on.  Effectof offshoring and outsourcing on manufacturing in the United States. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 26 The Globalization of Business (7 of 7) Reshoring  Factors responsible for the decline of offshoring.  Rising labor costs, quality and intellectual property theft, and long supply chains.  Bringing back a company’s manufacturing operations to its home country.  Trend appears to be greater in the United States. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 27  Photo by Mindspace Studio on Unsplash Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 28  Breakout rooms discussion Discuss in the group in which you have been randomly included the following: What is happening to global supply chains at present? Think about aspects such as:  Trade wars  The return of industrial policy  Conflicts  Technological change Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 29  Semester Schedule & Important Deliverables Date Lesson Week / CW Lecturing Team Session Topic Deadlines and Deliverables 20/09/24 1 / 38 BFH & TEC KICK OFF ONLINE - mandatory 07h00 -08h20 (Tec) ice breaker activity 15h00 - 16h20 (BFH) Course deliverables, assignment deadlines etc. 08h40 - 10h00 (Tec) Team Formation (45mins) and work on project definition 16h40 - 18h00 (BFH) 27/09 2 / 39 Omar Identify Key Drivers associated with Global Supply Chains, understanding the 07h00 -08h20 (Tec) macro-environment (dynamic PESTLE) 15h00 - 16h20 (BFH) 08h40 - 10h00 (Tec) Omar & Jacqueline guided coaching 16h40 - 18h00 (BFH) 04/10 3 / 40 Omar Current challenges (critical success factors, pitfalls, and risks) supply chains 07h00 -08h20 (Tec) are facing and the transformation they are undergoing 15h00 - 16h20 (BFH) 08h40 - 10h00 (Tec) Omar & Jacqueline guided coaching Status update of your project work 16h40 - 18h00 (BFH) 11/10 4 /41 Tec input Management of Supply Chains - Industry level (context Mexico) 07h00 -08h20 (Tec) 2 x 45min 15h00 - 16h20 (BFH) 08h40 - 10h00 (Tec) guided coaching Status update of your project work 16h40 - 18h00 (BFH) 18/10 5 /42 Tec input Management of Supply Chains - Industry level (context Mexico) 07h00 -08h20 (Tec) 2 x 45min 15h00 - 16h20 (BFH) 08h40 - 10h00 (Tec) guided coaching Status update of your project work 16h40 - 18h00 (BFH) Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 30 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 31