SGM3 Global Supply Chains PDF

SGM3 Global Supply Chains Current challenges supply chains are facing Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Last week we talked about: How globalization and technology have been driving supply chains...

SGM3 Global Supply Chains Current challenges supply chains are facing Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Last week we talked about: How globalization and technology have been driving supply chains Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 2 This week we talk about: How de-globalization and technology are shifting supply chains Concrete challenges to supply chains related to our case (BYD) derived from geopolitical tensions Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 3 Current challenges supply chains are facing For more see: Venkataraman, Supply Chain Management, 1e. © 2023 SAGE Publishing. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  Current and Emerging Issues in Global Supply Chain Management (1 of 8)  Rapid change in the supply chain management in the last decade.  Lack of resources and preparation to manage global supply chains.  Perennial problems in managing global supply chains:  Global economic downturn, turbulent trade relations, finding reliable, low-cost suppliers. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 5  Current and Emerging Issues in Global Supply Chain Management (2 of 8) The Continuous Optimization of Resources  Trend toward eliminating waste and maximizing productivity will continue.  Via optimization of raw materials and labor usage.  Firms will also focus on optimizing usage of their other resources. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 6  Current and Emerging Issues in Global Supply Chain Management (3 of 8) Greater Supply Chain Risks and Supply Chain Restructuring  Very few companies have well-thought-out strategies to address the risks.  Ways of restructuring old supply chains:  Splintering traditional supply chains.  Reconfiguring manufacturing facilities to respond to potential market scenarios. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 7  Current and Emerging Issues in Global Supply Chain Management (4 of 8) Role of Technology and Data Analytics  Internet of Things: connecting any device to the internet with an on–off switch.  3D printing: making 3D solid objects from a digital file.  Drones and autonomous vehicles:  Drones: used for asset monitoring, delivery.  Autonomous vehicles: self-driving vehicles. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 8  Current and Emerging Issues in Global Supply Chain Management (5 of 8) Role of Technology and Data Analytics  Big data analytics: analysis of huge, rapidly growing, and messy datasets.  Artificial intelligence: intelligence demonstrated by machines.  Blockchain: time-stamped list of records linked to each other. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 9  Current and Emerging Issues in Global Supply Chain Management (6 of 8) The Need for Resilience in Global Supply Chains and Ways to Achieve It  Increase in frequency and intensity of risks to global supply chains, global economy.  Need to consider the extraordinary costs and improve resiliency of supply chains.  Businesses need to reassess supply chain risk to build resilient supply chains. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 10  Current and Emerging Issues in Global Supply Chain Management (7 of 8) The Need for Resilience in Global Supply Chains and Ways to Achieve It  Ways to achieve resilience:  Designing agile supply chain networks.  Develop alternate sources or maintain extra safety stocks.  Reevaluate scale of production and product mix; leveraging technology. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 11 Venkataraman, Supply Chain Management, 1e. © 2023 SAGE Publishing. Current and Emerging Issues in Global Supply Chain Management (8 of 8) Sustainability  Use of methods, systems, and materials that won’t deplete resources.  Need for companies to integrate sustainability principles.  Increase in practices that reflect corporate social responsibility. Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 12  Photo by Mindspace Studio on Unsplash Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 13 Current geopolitics challenges in the context of BYD’s expansion to Mexico Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  https://www.ft.com/content/6 f2ebd4d-b3a7-442c-92cb- 6f6307b9499e Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  https://www.ft.com/co ntent/6f2ebd4d-b3a7- 442c-92cb- 6f6307b9499e Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  https://www.ft.com/co ntent/6f2ebd4d-b3a7- 442c-92cb- 6f6307b9499e Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences However: Geopolitical shifts impact on de-globalization See; https://www.arte.tv/de/videos/11 4207-000-A/russland-china-iran- front-gegen-den-westen/ Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences Phases of Globalization Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences Trade fragmentation (Gopinath et al. 2024) Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences Geopolitics & the Sino-American trade war US & Canada 100 per cent tariffs on Chinese EVs. US wants to ban cars with Chinese made software Mexico wants to have both Chinese investments and access to US market Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 21 What happens if US bans Chinese cars in its market? https://www.ft.com/co ntent/6f2ebd4d-b3a7- 442c-92cb- 6f6307b9499e Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences What Mexico wants  There aren’t two neat geopolitical blocs centred around China and the US, but a large mass of countries that pragmatically deal with both. Mexico is one such. Famously, the US restrictions on imports from China have merely led to a big increase in Chinese exports to Mexico. Financial Times (2024): https://www.ft.com/content/e3523f3b-de49-4c8b-b300-fe6ff20a7ef8 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  Breakout rooms discussion Discuss in the group in which you have been randomly included the following: Can Mexico get what it wants? Think about aspects such as:  USMCS re-negotiation  Relevance of Chinese car-manufacturing investments in the US (e.g., Volvo/Geely in South Carolina)  Domestic challenges in Mexico  Whether Harris or Trump is elected president of the US Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 24 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences  Photo by Mindspace Studio on Unsplash Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 26  Coaching Schedule Time Jacqueline Omar 16:45 – 17:00 (08h45 – 09:00) Group 5: Geopolitical Tensions Group 4: Supply Chain and Broader Risks Infrastructure 17:00 – 17:15 (09:00 – 09:15) Group 10: Geopolitical Tensions Group 1: Regulatory & and Broader Risks Bureaucratic Hurdles 17:15 – 17:30 (09:15 – 09:30) Group 9: Geopolitical Tensions Group 2: Competition and Broader Risks 17:30 – 17:45 (09:30 – 09:45) Group 8: USMCA Compliance & Group 3: Regulatory & Rules of Origin Bureaucratic Hurdles 17:45 – 18:00 (09:45 – 10:00) Group 7: USMCA Compliance & Group 6: Supply Chain Rules of Origin Infrastructure Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences 28