Global Supply Chain Development Workshop 1 “Internal Analysis”
Executive Summary Video
The Appleton Greene Corporate Training Program (CTP) for Global Supply Chain Development (GSCD) is provided by Mr. Buck BS Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
If you would like to view the Client Information Hub (CIH) for this program, please Click Here
Learning Provider Profile
Mr Buck is an approved Senior Consultant at Appleton Greene and he has experience in management, production and globalization. He has achieved a Bachelor of Applied Science IET/MET in Concentration in Operations Management. He has industry experience within the following sectors: Biotechnology; Manufacturing; Aerospace; Logistics and Technology. He has had commercial experience within the following countries: China; United Kingdom; Ireland and United States of America, or more specifically within the following cities: Shanghai; London; Cork; Minneapolis MN and Chicago IL. His personal achievements include: founded a corporation in 1991 and sold it in 2018 for $400m; entrepreneur of the year Ernst & Young 1998; entrepreneur of the year Ernst & Young 2004; built global manufacturing infrastructure and lead acquisition of 16 companies. His service skills incorporate: strategic planning; leadership development; supply chain; executive mentoring and merger & acquisition.
MOST Analysis
Mission Statement
The first stage of the program is to understand the history, current position and future outlook relating to Global Supply Chain Development (GSCD), not just for the organization as a whole, but for each individual department, including: customer service; e-business; finance; globalization; human resources; information technology; legal; management; marketing; production; education and logistics. This will be achieved by implementing a process within each department, enabling the head of that department to conduct a detailed and thorough internal analysis to establish the internal strengths and weaknesses and the external opportunities and threats in relation to Global Supply Chain Development (GSCD) and to establish a MOST analysis: Mission; Objectives; Strategies; Tasks, enabling them to be more proactive about the way in which they plan, develop, implement, manage and review Global Supply Chain Development (GSCD), within their department.
Objectives
01. Obtain a clear understanding of the core objective of Workshop 1. Time Allocated: 1 Month
02. Analyse the history of Global Supply Chain Development (GSCD) within your department. Time Allocated: 1 Month
03. Analyse the current position of Global Supply Chain Development (GSCD) within your department. Time Allocated: 1 Month
04. Analyse the future outlook of Global Supply Chain Development (GSCD) within your department. Time Allocated: 1 Month
05. Analyse internal strengths and weaknesses, relating to Global Supply Chain Development (GSCD), within your department. Time Allocated: 1 Month
06. Analyse external opportunities and threats, relating to Global Supply Chain Development (GSCD), within your department. Time Allocated: 1 Month
07. Identify and engage up to 10 Key Stakeholders within your department. Time Allocated: 1 Month
08. Identify a process that would enable your stakeholders to decentralize Global Supply Chain Development (GSCD). Time Allocated: 1 Month
09. Estimate the likely costs and the ongoing financial budget required for this process. Time Allocated: 1 Month
10. Estimate the likely hours and the ongoing time budget required for this process. Time Allocated: 1 Month
Strategies
01. Each department head is to personally set aside time to study Workshop 1 content thoroughly.
02. List the key projects that have been undertaken historically within your department and analyse how and if Global Supply Chain Development (GSCD) was used and where it was successful.
03. List the key projects that are currently being undertaken within your department and analyse how and if Global Supply Chain Development (GSCD) is being used and where it is being successful.
04. List the key projects that are scheduled to be undertaken in the future within your department and analyse how Global Supply Chain Development (GSCD) can be used in order to ensure success.
05. Research internal strengths and weaknesses, relating to Global Supply Chain Development (GSCD), within your department.
06. Research external opportunities and threats, relating to Global Supply Chain Development (GSCD), within your department.
07. Review the files and resumes of employees within your department in order to identify those with (GSCD) experience.
08. Research and identify a process that would enable your stakeholders to decentralize Global Supply Chain Development (GSCD).
09. Liaise with the Finance department to evaluate the likely costs and the ongoing financial budget required for this process.
10. Liaise with the Human Resource department to evaluate the likely hours and the ongoing time budget required for this process.
Tasks
01. Read through the entire workshop content while making notes including: Profile; MOST; Introduction; Executive Summary; Curriculum; Distance Learning; Tutorial Support; How To Study; Preliminary Analysis; Course Manuals; Project Studies; Benefits.
02. Create a task on your calendar, to be completed within the next month, in order to list and analyse historical projects.
03. Create a task on your calendar, to be completed within the next month, in order to list and analyse current projects.
04. Create a task on your calendar, to be completed within the next month, in order to list and analyse future projects.
05. Create a task on your calendar, to be completed within the next month, in order to research and analyse internal strengths and weaknesses, relating to Global Supply Chain Development (GSCD), within your department.
06. Create a task on your calendar, to be completed within the next month, in order to research and analyse external opportunities and threats, relating to Global Supply Chain Development (GSCD), within your department.
07. Set up interviews with employees within your department in order to identify those with a collaborative nature.
08. Implement a process that will enable your stakeholders to decentralize Global Supply Chain Development (GSCD).
09. Set up an appointment with the Finance department to evaluate the likely costs and the ongoing financial budget required for this process.
10. Set up appointment with Human Resource department to evaluate the likely hours and the ongoing time budget required for this process.
Workshop Introduction
Workshop Objective
The first stage of the program is to understand the history, current position and future outlook relating to Global Supply Chain Development (GSCD), not just for the organization as a whole, but for each individual department, including: customer service; e-business; finance; globalization; human resources; information technology; legal; management; marketing; production; education and logistics. This will be achieved by implementing a process within each department, enabling the head of that department to conduct a detailed and thorough internal analysis to establish the internal strengths and weaknesses and the external opportunities and threats in relation to Global Supply Chain Development (GSCD) and to establish a MOST analysis: Mission; Objectives; Strategies; Tasks, enabling them to be more proactive about the way in which they plan, develop, implement, manage and review (GSCD), within their department.
Global Supply-Chain – The impact of globalization upon the supply-chain
The globalization of business is the best thing to happen to supply chain management (SCM) in the last 30 years. This seemingly bold statement is made not because globalization has made SCM any easier quite the contrary. Driven by overwhelming market forces, globalization has forced countries and companies to become more efficient, creating the infrastructure and competitive advantage necessary to survive the early rounds of a brawl that will undoubtedly go beyond the last bell. Unfortunately, whether one is in favor of or against globalization is irrelevant for purposes of this discussion. Although both sides of the globalization debate have valid points, the fact is that it will continue. Reality dictates that if companies intend to not just survive but prosper in a hyper-competitive environment, they would be well advised to acknowledge the complex nature of the terrain in which they find themselves deployed. What is relevant to this discussion, however, is a basic understanding of what globalization is and its significance to the field of SCM. Globalization assumes many faces, but in the realm of economic development it revolves around the nurturing of commerce through the removal of both tariff and non-tariff barriers to trade. Driven mainly by the World Trade Organization (WTO) and its predecessor, the General Agreement on Tariffs and Trade (GATT), countries that embrace globalization allow access to their markets through lower tariffs while seeking reciprocal business opportunities in member countries around the world.
Globalization has created both opportunities and risks for companies, as the more connected economic environment has brought more customers and new markets whereas also bought larger extent of competitors. Globalization process along with the emerging of new markets for goods and service, new resources and supplier, and new pools of labor creates opportunities to companies. The more collaborative environment makes it possible for companies to reduce cost and focusing on these core competencies to participate more profitably in the global trade. Accompanied with the opportunities, challenges regard to supply chain also presented with the globalization. The global marketplace has made supply and demand more volatile and hard to forecast as there is a greater reliance on different companies spread over great distances. The global network made the supply chain more complex as the increased number of suppliers, customers and plants spread throughout the world. This can make it difficult for managers to maintain an adequate level of control over their operations. There is also increased competition from low cost products from overseas markets. Expanded market also means a broader range of competitors, companies devote themselves to explore more efficient technologies, strategies to provide better quality products, faster delivery service, and lower cost in order to maintain their comparative advantages in the global competition. Decreased number of information is another factor that may undermine the global supply chain. With large number of partners and franchises, decisions are difficult to be made with full information and therefore brings risk to the supply chain. The uncertainty accompanied with the globalization process, companies are seeking for new methods and strategies to mitigate the risk and take control over the uncertainty factors. Have a better understanding of the risks and prepare for an plan to response to the issues coming out is the way to enhance the ability of companies to stand against the challenges.
“Being Successful Means Managing Uncertainty. How will you face so many uncertainties and potential challenges? You certainly can’t control all external forces (political, natural disasters, energy costs, counterfeiting, and others), but you can start by making SCRM an integral part of your organization’s strategic planning process and redefining your internal practices and processes. As you plan for the future and build on strengths, make sure you understand the risks and threats that could cause you to lose competitive advantage. All of your executives need to be involved in this process. In addition, you will need an emergency plan for new external or internal threats. A proper SCRM plan is not about building fear in the organization, but rather about bringing peace of mind. Your organization will have taken the time to understand what is important and how to protect it, should a crisis happen. This will ultimately make your organization stronger and ready to take advantage of situations that cause others to flounder.”
Global Supply-Chain – Methodology
Supply Chain Development and Management, along with the closely related subject matter of logistics are the cornerstones of a competitive global corporate strategy, increased market share and amplification of stake holder value. Global Supply Chain Development (GSCD) provides in Phase I a framework for your understanding of supply chain development and management and its related components e.g. comprehensive introduction to supply chain management, an overview of all of the important dimensions logistics and their peculiar relationship to both supply chain management and its relevance to global trade strategy. Phase II is related to is related to strategic factors, supply chain relationships and third party logistics services, performance metrics and financial analysis, along with an emphasis on information systems and the discipline they create. Phase III addresses the key process steps within supply chain fulfillment e.g. order management and customer service, inventory management, transportation and distribution. Phase IV delves into the subject topic area of supply chain planning, sourcing and operations, tools needed to design, develop and refine a supply chain network, alongside of procurement and strategic vendor relationships. Phase V covers the areas enveloped by major macro industry trends that will condition the future of logistics and supply management as well as specific strategies that will enable sustained competitive strength.
Global Supply-Chain Development (GSCD)
Abstract.
To be competitive in today’s global marketplace, and to effectively serve global operations, supply chains must also be “world class”. This paper provides a step-by-step approach to global supply chain development, contrasts global to domestic development, and identifies challenges, complexities, and strategies for building multi-national supply chains.
Domestic vs. Global Supply Chains
Current State of Global Supply Chain Activities
Today top management of major corporations realize that good management of supply chains (including purchasing, finance, materials management, transportation and logistics management, quality management, information technology and time management) can make major contributions to the bottom line and help their organizations implement strategic initiatives and achieve overall goals. As a result of developments in communication and transportation, globalization is now accepted as a “way of life,” the normal way of doing business. In many, if not most industries, companies must adopt a global view of their operations in order to survive. Unfortunately, many corporations are still stuck in the domestic paradigm and are not aware of, or taking advantage of improvements and benefits that could come from an optimal global supply chain.
Changing World Situation, Growing Need for Global Supply Chains
Some changes that are underway and moving swiftly that affect globalization of supply chains include: more investment by U.S. industries in non-U.S. areas, increased international spending activity by major U.S. corporations, mergers, acquisitions, and joint ventures involving companies from different countries linking more organizations across the globe, and more organizations are making purchasing and supply decisions based on total cost of ownership and value added. Many buying and selling markets are worldwide, creating the need for optimized, global supply chains. Improvements in transportation and communication technology have made the creation and management of global supply chains efficient and effective to serve either domestic or worldwide requirements.
Corporations seek to apply technology and immediately obtain returns from technological investment before obsolescence occurs. Information technologies have enabled the aggregation of category spend across organizational business units around the world, thereby enabling strategic sourcing, strategic cost management and “supply-demand optimization. This development has facilitated cross-functional, cross-organizational approaches to sourcing activities, enabling total cost savings and other key synergies across the supply chain to be realized. Firms that have invested in ERP technology such as SAP, Oracle, J. D. Edwards, Ariba, etc. want to leverage their return on this investment. Utilizing this type of technology to optimize global operations and to expand and link systems and applications across business units worldwide provides increased capability to establish and manage global supply chains. Growing participation by companies in buying and selling consortiums is also impacting global purchasing and supply chain activity. Such arrangements intensify the need to gain competitive advantage vs. competitors’ supply chains.
Global Supply Chain Objectives
Overall Objective of Global Supply Chains
Have in place the global supply chain configuration that results in meeting or exceeding worldwide customer (internal and/or external) expectations at the lowest strategic cost.
Specific Objectives and Expectations of Global Supply Chains
In general the objectives of global supply chains are the same as domestic supply chains. The main differences are the scope of the supply chain and the number and types of participants that may be present: Leverage spend (across business units and geographic boundaries); Align Incentives for integration of activities (buyers, suppliers, end-users) to support organizational goals and strategies; Optimize supply chain operations (no. of members, capabilities, costs); Reduce inventories across the chain; Reduce all costs (item costs and supply chain operational costs); Assurance of supply of right quality items for production and support activities; Have well designed investment recovery processes; Critical cycle time improvements; Address local content and local business development goals.
Global Complexities
Sourcing in multiple countries brings with it a number of considerations not encountered domestically. Some of the complexities include: Currency exchange and risk; Countertrade opportunities and requirements; Varying laws and jurisdictional questions; Cultural differences; Language differences; Labor and training availability, practices, laws, regulations; Transportation, packing, shipping, storing, import, export, customs; Security: materials, products, personnel, intellectual property.
Challenges and Barriers to Building Global Supply Chains
In the varying environments encountered internationally, there are a number of challenges and barriers involved in building global supply chains. Many of these are rarely if ever a concern with domestic supply chains. Some of these include: Uncertain political stability, different government agendas; Lack of infrastructure in some countries (roads, port facilities, trained labor, utilities, communications); Lack of critical market mass in particular countries; High transaction costs due to varying business environments; Requirements to use in-country agents or partners and local content requirements; Lack of potential for repeat purchases, e.g. in project situations; Slower adoption of e-business than in the domestic market; No or limited free trade zone availability; Partner/contract limitations requiring bidding for all procurement activities and inhibiting alliance-building; High logistics and transportation costs; Different time zones (communication difficulties); Financial risks are higher, e.g., potential for war, terrorism, government changes; The nature of global activity (may be fragmented and/or scattered); Long/unpredictable supplier lead times; Protectionism (tariffs, duties, quotas, inspections); Limited number of qualified global suppliers; Difficult to link global project work to “run and maintain” global activities; Limited availability of trained personnel for purchasing or supply management positions; Supply chain management skill gaps and training requirements need to be addressed.
Executive Summary
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Some Key Enablers for Building Global Supply Chains
Top management vision with proactive, visible support; Collateral change-management initiatives; Organizational procurement effort moderately or highly centralized to maximize leverage of spend; Safety programs are effectively interwoven into all operational activities; A diffusion of information systems that capture detailed spending activities by commodity, business unit, supplier, and geographical area or country; Mutual mentoring/problem solving/synergy among members of the supply chain (the supply chain is assembled by utilizing the core competencies of each member); Responding to host country’s interests without damaging supply chains; Organization has a structured and active strategic sourcing process; The organization’s culture allows for a total cost of ownership philosophy; Quality certifications can be captured for key global suppliers; Reporting capabilities for performance measurement of supply chain activities and results; Supply chain member integration of quality and spend data, organized by company, business unit, geography, commodity or service category, and supplier; Facilitated information links between and within firms; Participants in the supply chain have a “boundary-spanning” perspective (as opposed to narrow or limited vision of business processes); Building persuasive business cases that demonstrate the new way to do business, i.e. building effective supply chains is a compelling economic issue that will improve the bottom line of business units and the overall organization; Training programs are designed and implemented to update SCM skill sets.
Elements of Total Cost for International Sourcing
Base price; Tooling costs; Packaging; Escalation; Transportation; Customs duty/tariffs; Insurance premiums; Payment terms and fees for payment transactions; Documentation fees; Port storage fees; Port, terminal, and handling fees; Customs broker fees; Taxes; Communication costs; Travel costs; Inventory carrying costs; Speed of implementation of advantageous sourcing options and SCM savings programs.
In summary, effective development of global supply chains is focused on redefining and adapting organizational strategies to provide competitive advantage. All of these SCM design efforts should be undertaken within the context of the organization’s corporate DNA. Global SCM strategies should address stakeholder value, align with business unit objectives, and enhance safety, diversity, local business development and customer service needs. Change management should support such efforts. The responsiveness of your supply chains to all of these elements can make them “world class.”
Curriculum
Internal Analysis – Workshop 1
- Part 1 Customer Services
- Part 2 E-Business
- Part 3 Finance
- Part 4 Globalization
- Part 5 Human Resources
- Part 6 Information Technology
- Part 7 Legal
- Part 8 Management
- Part 9 Marketing
- Part 10 Production
- Part 11 Education
- Part 12 Logistics
Distance Learning
Introduction
Welcome to Appleton Greene and thank you for enrolling on the Global Supply Chain Development (GSCD) corporate training program. You will be learning through our unique facilitation via distance-learning method, which will enable you to practically implement everything that you learn academically. The methods and materials used in your program have been designed and developed to ensure that you derive the maximum benefits and enjoyment possible. We hope that you find the program challenging and fun to do. However, if you have never been a distance-learner before, you may be experiencing some trepidation at the task before you. So we will get you started by giving you some basic information and guidance on how you can make the best use of the modules, how you should manage the materials and what you should be doing as you work through them. This guide is designed to point you in the right direction and help you to become an effective distance-learner. Take a few hours or so to study this guide and your guide to tutorial support for students, while making notes, before you start to study in earnest.
Study environment
You will need to locate a quiet and private place to study, preferably a room where you can easily be isolated from external disturbances or distractions. Make sure the room is well-lit and incorporates a relaxed, pleasant feel. If you can spoil yourself within your study environment, you will have much more of a chance to ensure that you are always in the right frame of mind when you do devote time to study. For example, a nice fire, the ability to play soft soothing background music, soft but effective lighting, perhaps a nice view if possible and a good size desk with a comfortable chair. Make sure that your family know when you are studying and understand your study rules. Your study environment is very important. The ideal situation, if at all possible, is to have a separate study, which can be devoted to you. If this is not possible then you will need to pay a lot more attention to developing and managing your study schedule, because it will affect other people as well as yourself. The better your study environment, the more productive you will be.
Study tools & rules
Try and make sure that your study tools are sufficient and in good working order. You will need to have access to a computer, scanner and printer, with access to the internet. You will need a very comfortable chair, which supports your lower back, and you will need a good filing system. It can be very frustrating if you are spending valuable study time trying to fix study tools that are unreliable, or unsuitable for the task. Make sure that your study tools are up to date. You will also need to consider some study rules. Some of these rules will apply to you and will be intended to help you to be more disciplined about when and how you study. This distance-learning guide will help you and after you have read it you can put some thought into what your study rules should be. You will also need to negotiate some study rules for your family, friends or anyone who lives with you. They too will need to be disciplined in order to ensure that they can support you while you study. It is important to ensure that your family and friends are an integral part of your study team. Having their support and encouragement can prove to be a crucial contribution to your successful completion of the program. Involve them in as much as you can.
Successful distance-learning
Distance-learners are freed from the necessity of attending regular classes or workshops, since they can study in their own way, at their own pace and for their own purposes. But unlike traditional internal training courses, it is the student’s responsibility, with a distance-learning program, to ensure that they manage their own study contribution. This requires strong self-discipline and self-motivation skills and there must be a clear will to succeed. Those students who are used to managing themselves, are good at managing others and who enjoy working in isolation, are more likely to be good distance-learners. It is also important to be aware of the main reasons why you are studying and of the main objectives that you are hoping to achieve as a result. You will need to remind yourself of these objectives at times when you need to motivate yourself. Never lose sight of your long-term goals and your short-term objectives. There is nobody available here to pamper you, or to look after you, or to spoon-feed you with information, so you will need to find ways to encourage and appreciate yourself while you are studying. Make sure that you chart your study progress, so that you can be sure of your achievements and re-evaluate your goals and objectives regularly.
Self-assessment
Appleton Greene training programs are in all cases post-graduate programs. Consequently, you should already have obtained a business-related degree and be an experienced learner. You should therefore already be aware of your study strengths and weaknesses. For example, which time of the day are you at your most productive? Are you a lark or an owl? What study methods do you respond to the most? Are you a consistent learner? How do you discipline yourself? How do you ensure that you enjoy yourself while studying? It is important to understand yourself as a learner and so some self-assessment early on will be necessary if you are to apply yourself correctly. Perform a SWOT analysis on yourself as a student. List your internal strengths and weaknesses as a student and your external opportunities and threats. This will help you later on when you are creating a study plan. You can then incorporate features within your study plan that can ensure that you are playing to your strengths, while compensating for your weaknesses. You can also ensure that you make the most of your opportunities, while avoiding the potential threats to your success.
Accepting responsibility as a student
Training programs invariably require a significant investment, both in terms of what they cost and in the time that you need to contribute to study and the responsibility for successful completion of training programs rests entirely with the student. This is never more apparent than when a student is learning via distance-learning. Accepting responsibility as a student is an important step towards ensuring that you can successfully complete your training program. It is easy to instantly blame other people or factors when things go wrong. But the fact of the matter is that if a failure is your failure, then you have the power to do something about it, it is entirely in your own hands. If it is always someone else’s failure, then you are powerless to do anything about it. All students study in entirely different ways, this is because we are all individuals and what is right for one student, is not necessarily right for another. In order to succeed, you will have to accept personal responsibility for finding a way to plan, implement and manage a personal study plan that works for you. If you do not succeed, you only have yourself to blame.
Planning
By far the most critical contribution to stress, is the feeling of not being in control. In the absence of planning we tend to be reactive and can stumble from pillar to post in the hope that things will turn out fine in the end. Invariably they don’t! In order to be in control, we need to have firm ideas about how and when we want to do things. We also need to consider as many possible eventualities as we can, so that we are prepared for them when they happen. Prescriptive Change, is far easier to manage and control, than Emergent Change. The same is true with distance-learning. It is much easier and much more enjoyable, if you feel that you are in control and that things are going to plan. Even when things do go wrong, you are prepared for them and can act accordingly without any unnecessary stress. It is important therefore that you do take time to plan your studies properly.
Management
Once you have developed a clear study plan, it is of equal importance to ensure that you manage the implementation of it. Most of us usually enjoy planning, but it is usually during implementation when things go wrong. Targets are not met and we do not understand why. Sometimes we do not even know if targets are being met. It is not enough for us to conclude that the study plan just failed. If it is failing, you will need to understand what you can do about it. Similarly if your study plan is succeeding, it is still important to understand why, so that you can improve upon your success. You therefore need to have guidelines for self-assessment so that you can be consistent with performance improvement throughout the program. If you manage things correctly, then your performance should constantly improve throughout the program.
Study objectives & tasks
The first place to start is developing your program objectives. These should feature your reasons for undertaking the training program in order of priority. Keep them succinct and to the point in order to avoid confusion. Do not just write the first things that come into your head because they are likely to be too similar to each other. Make a list of possible departmental headings, such as: Customer Service; E-business; Finance; Globalization; Human Resources; Technology; Legal; Management; Marketing and Production. Then brainstorm for ideas by listing as many things that you want to achieve under each heading and later re-arrange these things in order of priority. Finally, select the top item from each department heading and choose these as your program objectives. Try and restrict yourself to five because it will enable you to focus clearly. It is likely that the other things that you listed will be achieved if each of the top objectives are achieved. If this does not prove to be the case, then simply work through the process again.
Study forecast
As a guide, the Appleton Greene Global Supply Chain Development (GSCD) corporate training program should take 12-18 months to complete, depending upon your availability and current commitments. The reason why there is such a variance in time estimates is because every student is an individual, with differing productivity levels and different commitments. These differentiation’s are then exaggerated by the fact that this is a distance-learning program, which incorporates the practical integration of academic theory as an as a part of the training program. Consequently all of the project studies are real, which means that important decisions and compromises need to be made. You will want to get things right and will need to be patient with your expectations in order to ensure that they are. We would always recommend that you are prudent with your own task and time forecasts, but you still need to develop them and have a clear indication of what are realistic expectations in your case. With reference to your time planning: consider the time that you can realistically dedicate towards study with the program every week; calculate how long it should take you to complete the program, using the guidelines featured here; then break the program down into logical modules and allocate a suitable proportion of time to each of them, these will be your milestones; you can create a time plan by using a spreadsheet on your computer, or a personal organizer such as MS Outlook, you could also use a financial forecasting software; break your time forecasts down into manageable chunks of time, the more specific you can be, the more productive and accurate your time management will be; finally, use formulas where possible to do your time calculations for you, because this will help later on when your forecasts need to change in line with actual performance. With reference to your task planning: refer to your list of tasks that need to be undertaken in order to achieve your program objectives; with reference to your time plan, calculate when each task should be implemented; remember that you are not estimating when your objectives will be achieved, but when you will need to focus upon implementing the corresponding tasks; you also need to ensure that each task is implemented in conjunction with the associated training modules which are relevant; then break each single task down into a list of specific to do’s, say approximately ten to do’s for each task and enter these into your study plan; once again you could use MS Outlook to incorporate both your time and task planning and this could constitute your study plan; you could also use a project management software like MS Project. You should now have a clear and realistic forecast detailing when you can expect to be able to do something about undertaking the tasks to achieve your program objectives.
Performance management
It is one thing to develop your study forecast, it is quite another to monitor your progress. Ultimately it is less important whether you achieve your original study forecast and more important that you update it so that it constantly remains realistic in line with your performance. As you begin to work through the program, you will begin to have more of an idea about your own personal performance and productivity levels as a distance-learner. Once you have completed your first study module, you should re-evaluate your study forecast for both time and tasks, so that they reflect your actual performance level achieved. In order to achieve this you must first time yourself while training by using an alarm clock. Set the alarm for hourly intervals and make a note of how far you have come within that time. You can then make a note of your actual performance on your study plan and then compare your performance against your forecast. Then consider the reasons that have contributed towards your performance level, whether they are positive or negative and make a considered adjustment to your future forecasts as a result. Given time, you should start achieving your forecasts regularly.
With reference to time management: time yourself while you are studying and make a note of the actual time taken in your study plan; consider your successes with time-efficiency and the reasons for the success in each case and take this into consideration when reviewing future time planning; consider your failures with time-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future time planning; re-evaluate your study forecast in relation to time planning for the remainder of your training program to ensure that you continue to be realistic about your time expectations. You need to be consistent with your time management, otherwise you will never complete your studies. This will either be because you are not contributing enough time to your studies, or you will become less efficient with the time that you do allocate to your studies. Remember, if you are not in control of your studies, they can just become yet another cause of stress for you.
With reference to your task management: time yourself while you are studying and make a note of the actual tasks that you have undertaken in your study plan; consider your successes with task-efficiency and the reasons for the success in each case; take this into consideration when reviewing future task planning; consider your failures with task-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future task planning; re-evaluate your study forecast in relation to task planning for the remainder of your training program to ensure that you continue to be realistic about your task expectations. You need to be consistent with your task management, otherwise you will never know whether you are achieving your program objectives or not.
Keeping in touch
You will have access to qualified and experienced professors and tutors who are responsible for providing tutorial support for your particular training program. So don’t be shy about letting them know how you are getting on. We keep electronic records of all tutorial support emails so that professors and tutors can review previous correspondence before considering an individual response. It also means that there is a record of all communications between you and your professors and tutors and this helps to avoid any unnecessary duplication, misunderstanding, or misinterpretation. If you have a problem relating to the program, share it with them via email. It is likely that they have come across the same problem before and are usually able to make helpful suggestions and steer you in the right direction. To learn more about when and how to use tutorial support, please refer to the Tutorial Support section of this student information guide. This will help you to ensure that you are making the most of tutorial support that is available to you and will ultimately contribute towards your success and enjoyment with your training program.
Work colleagues and family
You should certainly discuss your program study progress with your colleagues, friends and your family. Appleton Greene training programs are very practical. They require you to seek information from other people, to plan, develop and implement processes with other people and to achieve feedback from other people in relation to viability and productivity. You will therefore have plenty of opportunities to test your ideas and enlist the views of others. People tend to be sympathetic towards distance-learners, so don’t bottle it all up in yourself. Get out there and share it! It is also likely that your family and colleagues are going to benefit from your labors with the program, so they are likely to be much more interested in being involved than you might think. Be bold about delegating work to those who might benefit themselves. This is a great way to achieve understanding and commitment from people who you may later rely upon for process implementation. Share your experiences with your friends and family.
Making it relevant
The key to successful learning is to make it relevant to your own individual circumstances. At all times you should be trying to make bridges between the content of the program and your own situation. Whether you achieve this through quiet reflection or through interactive discussion with your colleagues, client partners or your family, remember that it is the most important and rewarding aspect of translating your studies into real self-improvement. You should be clear about how you want the program to benefit you. This involves setting clear study objectives in relation to the content of the course in terms of understanding, concepts, completing research or reviewing activities and relating the content of the modules to your own situation. Your objectives may understandably change as you work through the program, in which case you should enter the revised objectives on your study plan so that you have a permanent reminder of what you are trying to achieve, when and why.
Distance-learning check-list
Prepare your study environment, your study tools and rules.
Undertake detailed self-assessment in terms of your ability as a learner.
Create a format for your study plan.
Consider your study objectives and tasks.
Create a study forecast.
Assess your study performance.
Re-evaluate your study forecast.
Be consistent when managing your study plan.
Use your Appleton Greene Certified Learning Provider (CLP) for tutorial support.
Make sure you keep in touch with those around you.
Tutorial Support
Programs
Appleton Greene uses standard and bespoke corporate training programs as vessels to transfer business process improvement knowledge into the heart of our clients’ organizations. Each individual program focuses upon the implementation of a specific business process, which enables clients to easily quantify their return on investment. There are hundreds of established Appleton Greene corporate training products now available to clients within customer services, e-business, finance, globalization, human resources, information technology, legal, management, marketing and production. It does not matter whether a client’s employees are located within one office, or an unlimited number of international offices, we can still bring them together to learn and implement specific business processes collectively. Our approach to global localization enables us to provide clients with a truly international service with that all important personal touch. Appleton Greene corporate training programs can be provided virtually or locally and they are all unique in that they individually focus upon a specific business function. They are implemented over a sustainable period of time and professional support is consistently provided by qualified learning providers and specialist consultants.
Support available
You will have a designated Certified Learning Provider (CLP) and an Accredited Consultant and we encourage you to communicate with them as much as possible. In all cases tutorial support is provided online because we can then keep a record of all communications to ensure that tutorial support remains consistent. You would also be forwarding your work to the tutorial support unit for evaluation and assessment. You will receive individual feedback on all of the work that you undertake on a one-to-one basis, together with specific recommendations for anything that may need to be changed in order to achieve a pass with merit or a pass with distinction and you then have as many opportunities as you may need to re-submit project studies until they meet with the required standard. Consequently the only reason that you should really fail (CLP) is if you do not do the work. It makes no difference to us whether a student takes 12 months or 18 months to complete the program, what matters is that in all cases the same quality standard will have been achieved.
Support Process
Please forward all of your future emails to the designated (CLP) Tutorial Support Unit email address that has been provided and please do not duplicate or copy your emails to other AGC email accounts as this will just cause unnecessary administration. Please note that emails are always answered as quickly as possible but you will need to allow a period of up to 20 business days for responses to general tutorial support emails during busy periods, because emails are answered strictly within the order in which they are received. You will also need to allow a period of up to 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Please therefore kindly allow for this within your time planning. All communications are managed online via email because it enables tutorial service support managers to review other communications which have been received before responding and it ensures that there is a copy of all communications retained on file for future reference. All communications will be stored within your personal (CLP) study file here at Appleton Greene throughout your designated study period. If you need any assistance or clarification at any time, please do not hesitate to contact us by forwarding an email and remember that we are here to help. If you have any questions, please list and number your questions succinctly and you can then be sure of receiving specific answers to each and every query.
Time Management
It takes approximately 1 Year to complete the Global Supply Chain Development (GSCD) corporate training program, incorporating 12 x 6-hour monthly workshops. Each student will also need to contribute approximately 4 hours per week over 1 Year of their personal time. Students can study from home or work at their own pace and are responsible for managing their own study plan. There are no formal examinations and students are evaluated and assessed based upon their project study submissions, together with the quality of their internal analysis and supporting documents. They can contribute more time towards study, when they have the time to do so and can contribute less time when they are busy. All students tend to be in full time employment while studying and the Global Supply Chain Development (GSCD) program is purposely designed to accommodate this, so there is plenty of flexibility in terms of time management. It makes no difference to us at Appleton Greene, whether individuals take 12-18 months to complete this program. What matters is that in all cases the same standard of quality will have been achieved with the standard and bespoke programs that have been developed.
Distance Learning Guide
The distance learning guide should be your first port of call when starting your training program. It will help you when you are planning how and when to study, how to create the right environment and how to establish the right frame of mind. If you can lay the foundations properly during the planning stage, then it will contribute to your enjoyment and productivity while training later. The guide helps to change your lifestyle in order to accommodate time for study and to cultivate good study habits. It helps you to chart your progress so that you can measure your performance and achieve your goals. It explains the tools that you will need for study and how to make them work. It also explains how to translate academic theory into practical reality. Spend some time now working through your distance learning guide and make sure that you have firm foundations in place so that you can make the most of your distance learning program. There is no requirement for you to attend training workshops or classes at Appleton Greene offices. The entire program is undertaken online, program course manuals and project studies are administered via the Appleton Greene web site and via email, so you are able to study at your own pace and in the comfort of your own home or office as long as you have a computer and access to the internet.
How To Study
The how to study guide provides students with a clear understanding of the Appleton Greene facilitation via distance learning training methods and enables students to obtain a clear overview of the training program content. It enables students to understand the step-by-step training methods used by Appleton Greene and how course manuals are integrated with project studies. It explains the research and development that is required and the need to provide evidence and references to support your statements. It also enables students to understand precisely what will be required of them in order to achieve a pass with merit and a pass with distinction for individual project studies and provides useful guidance on how to be innovative and creative when developing your Unique Program Proposition (UPP).
Tutorial Support
Tutorial support for the Appleton Greene Global Supply Chain Development (GSCD) corporate training program is provided online either through the Appleton Greene Client Support Portal (CSP), or via email. All tutorial support requests are facilitated by a designated Program Administration Manager (PAM). They are responsible for deciding which professor or tutor is the most appropriate option relating to the support required and then the tutorial support request is forwarded onto them. Once the professor or tutor has completed the tutorial support request and answered any questions that have been asked, this communication is then returned to the student via email by the designated Program Administration Manager (PAM). This enables all tutorial support, between students, professors and tutors, to be facilitated by the designated Program Administration Manager (PAM) efficiently and securely through the email account. You will therefore need to allow a period of up to 20 business days for responses to general support queries and up to 30 business days for the evaluation and assessment of project studies, because all tutorial support requests are answered strictly within the order in which they are received. This does not include weekends or public holidays. Consequently you need to put some thought into the management of your tutorial support procedure in order to ensure that your study plan is feasible and to obtain the maximum possible benefit from tutorial support during your period of study. Please retain copies of your tutorial support emails for future reference. Please ensure that ALL of your tutorial support emails are set out using the format as suggested within your guide to tutorial support. Your tutorial support emails need to be referenced clearly to the specific part of the course manual or project study which you are working on at any given time. You also need to list and number any questions that you would like to ask, up to a maximum of five questions within each tutorial support email. Remember the more specific you can be with your questions the more specific your answers will be too and this will help you to avoid any unnecessary misunderstanding, misinterpretation, or duplication. The guide to tutorial support is intended to help you to understand how and when to use support in order to ensure that you get the most out of your training program. Appleton Greene training programs are designed to enable you to do things for yourself. They provide you with a structure or a framework and we use tutorial support to facilitate students while they practically implement what they learn. In other words, we are enabling students to do things for themselves. The benefits of distance learning via facilitation are considerable and are much more sustainable in the long-term than traditional short-term knowledge sharing programs. Consequently you should learn how and when to use tutorial support so that you can maximize the benefits from your learning experience with Appleton Greene. This guide describes the purpose of each training function and how to use them and how to use tutorial support in relation to each aspect of the training program. It also provides useful tips and guidance with regard to best practice.
Tutorial Support Tips
Students are often unsure about how and when to use tutorial support with Appleton Greene. This Tip List will help you to understand more about how to achieve the most from using tutorial support. Refer to it regularly to ensure that you are continuing to use the service properly. Tutorial support is critical to the success of your training experience, but it is important to understand when and how to use it in order to maximize the benefit that you receive. It is no coincidence that those students who succeed are those that learn how to be positive, proactive and productive when using tutorial support.
Be positive and friendly with your tutorial support emails
Remember that if you forward an email to the tutorial support unit, you are dealing with real people. “Do unto others as you would expect others to do unto you”. If you are positive, complimentary and generally friendly in your emails, you will generate a similar response in return. This will be more enjoyable, productive and rewarding for you in the long-term.
Think about the impression that you want to create
Every time that you communicate, you create an impression, which can be either positive or negative, so put some thought into the impression that you want to create. Remember that copies of all tutorial support emails are stored electronically and tutors will always refer to prior correspondence before responding to any current emails. Over a period of time, a general opinion will be arrived at in relation to your character, attitude and ability. Try to manage your own frustrations, mood swings and temperament professionally, without involving the tutorial support team. Demonstrating frustration or a lack of patience is a weakness and will be interpreted as such. The good thing about communicating in writing, is that you will have the time to consider your content carefully, you can review it and proof-read it before sending your email to Appleton Greene and this should help you to communicate more professionally, consistently and to avoid any unnecessary knee-jerk reactions to individual situations as and when they may arise. Please also remember that the CLP Tutorial Support Unit will not just be responsible for evaluating and assessing the quality of your work, they will also be responsible for providing recommendations to other learning providers and to client contacts within the Appleton Greene global client network, so do be in control of your own emotions and try to create a good impression.
Remember that quality is preferred to quantity
Please remember that when you send an email to the tutorial support team, you are not using Twitter or Text Messaging. Try not to forward an email every time that you have a thought. This will not prove to be productive either for you or for the tutorial support team. Take time to prepare your communications properly, as if you were writing a professional letter to a business colleague and make a list of queries that you are likely to have and then incorporate them within one email, say once every month, so that the tutorial support team can understand more about context, application and your methodology for study. Get yourself into a consistent routine with your tutorial support requests and use the tutorial support template provided with ALL of your emails. The (CLP) Tutorial Support Unit will not spoon-feed you with information. They need to be able to evaluate and assess your tutorial support requests carefully and professionally.
Be specific about your questions in order to receive specific answers
Try not to write essays by thinking as you are writing tutorial support emails. The tutorial support unit can be unclear about what in fact you are asking, or what you are looking to achieve. Be specific about asking questions that you want answers to. Number your questions. You will then receive specific answers to each and every question. This is the main purpose of tutorial support via email.
Keep a record of your tutorial support emails
It is important that you keep a record of all tutorial support emails that are forwarded to you. You can then refer to them when necessary and it avoids any unnecessary duplication, misunderstanding, or misinterpretation.
Individual training workshops or telephone support
Tutorial Support Email Format
You should use this tutorial support format if you need to request clarification or assistance while studying with your training program. Please note that ALL of your tutorial support request emails should use the same format. You should therefore set up a standard email template, which you can then use as and when you need to. Emails that are forwarded to Appleton Greene, which do not use the following format, may be rejected and returned to you by the (CLP) Program Administration Manager. A detailed response will then be forwarded to you via email usually within 20 business days of receipt for general support queries and 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Your tutorial support request, together with the corresponding TSU reply, will then be saved and stored within your electronic TSU file at Appleton Greene for future reference.
Subject line of your email
Please insert: Appleton Greene (CLP) Tutorial Support Request: (Your Full Name) (Date), within the subject line of your email.
Main body of your email
Please insert:
1. Appleton Greene Certified Learning Provider (CLP) Tutorial Support Request
2. Your Full Name
3. Date of TS request
4. Preferred email address
5. Backup email address
6. Course manual page name or number (reference)
7. Project study page name or number (reference)
Subject of enquiry
Please insert a maximum of 50 words (please be succinct)
Briefly outline the subject matter of your inquiry, or what your questions relate to.
Question 1
Maximum of 50 words (please be succinct)
Maximum of 50 words (please be succinct)
Question 3
Maximum of 50 words (please be succinct)
Question 4
Maximum of 50 words (please be succinct)
Question 5
Maximum of 50 words (please be succinct)
Please note that a maximum of 5 questions is permitted with each individual tutorial support request email.
Procedure
* List the questions that you want to ask first, then re-arrange them in order of priority. Make sure that you reference them, where necessary, to the course manuals or project studies.
* Make sure that you are specific about your questions and number them. Try to plan the content within your emails to make sure that it is relevant.
* Make sure that your tutorial support emails are set out correctly, using the Tutorial Support Email Format provided here.
* Save a copy of your email and incorporate the date sent after the subject title. Keep your tutorial support emails within the same file and in date order for easy reference.
* Allow up to 20 business days for a response to general tutorial support emails and up to 30 business days for the evaluation and assessment of project studies, because detailed individual responses will be made in all cases and tutorial support emails are answered strictly within the order in which they are received.
* Emails can and do get lost. So if you have not received a reply within the appropriate time, forward another copy or a reminder to the tutorial support unit to be sure that it has been received but do not forward reminders unless the appropriate time has elapsed.
* When you receive a reply, save it immediately featuring the date of receipt after the subject heading for easy reference. In most cases the tutorial support unit replies to your questions individually, so you will have a record of the questions that you asked as well as the answers offered. With project studies however, separate emails are usually forwarded by the tutorial support unit, so do keep a record of your own original emails as well.
* Remember to be positive and friendly in your emails. You are dealing with real people who will respond to the same things that you respond to.
* Try not to repeat questions that have already been asked in previous emails. If this happens the tutorial support unit will probably just refer you to the appropriate answers that have already been provided within previous emails.
* If you lose your tutorial support email records you can write to Appleton Greene to receive a copy of your tutorial support file, but a separate administration charge may be levied for this service.
How To Study
Your Certified Learning Provider (CLP) and Accredited Consultant can help you to plan a task list for getting started so that you can be clear about your direction and your priorities in relation to your training program. It is also a good way to introduce yourself to the tutorial support team.
Planning your study environment
Your study conditions are of great importance and will have a direct effect on how much you enjoy your training program. Consider how much space you will have, whether it is comfortable and private and whether you are likely to be disturbed. The study tools and facilities at your disposal are also important to the success of your distance-learning experience. Your tutorial support unit can help with useful tips and guidance, regardless of your starting position. It is important to get this right before you start working on your training program.
Planning your program objectives
It is important that you have a clear list of study objectives, in order of priority, before you start working on your training program. Your tutorial support unit can offer assistance here to ensure that your study objectives have been afforded due consideration and priority.
Planning how and when to study
Distance-learners are freed from the necessity of attending regular classes, since they can study in their own way, at their own pace and for their own purposes. This approach is designed to let you study efficiently away from the traditional classroom environment. It is important however, that you plan how and when to study, so that you are making the most of your natural attributes, strengths and opportunities. Your tutorial support unit can offer assistance and useful tips to ensure that you are playing to your strengths.
Planning your study tasks
You should have a clear understanding of the study tasks that you should be undertaking and the priority associated with each task. These tasks should also be integrated with your program objectives. The distance learning guide and the guide to tutorial support for students should help you here, but if you need any clarification or assistance, please contact your tutorial support unit.
Planning your time
You will need to allocate specific times during your calendar when you intend to study if you are to have a realistic chance of completing your program on time. You are responsible for planning and managing your own study time, so it is important that you are successful with this. Your tutorial support unit can help you with this if your time plan is not working.
Keeping in touch
Consistency is the key here. If you communicate too frequently in short bursts, or too infrequently with no pattern, then your management ability with your studies will be questioned, both by you and by your tutorial support unit. It is obvious when a student is in control and when one is not and this will depend how able you are at sticking with your study plan. Inconsistency invariably leads to in-completion.
Charting your progress
Your tutorial support team can help you to chart your own study progress. Refer to your distance learning guide for further details.
Making it work
To succeed, all that you will need to do is apply yourself to undertaking your training program and interpreting it correctly. Success or failure lies in your hands and your hands alone, so be sure that you have a strategy for making it work. Your Certified Learning Provider (CLP) and Accredited Consultant can guide you through the process of program planning, development and implementation.
Reading methods
Interpretation is often unique to the individual but it can be improved and even quantified by implementing consistent interpretation methods. Interpretation can be affected by outside interference such as family members, TV, or the Internet, or simply by other thoughts which are demanding priority in our minds. One thing that can improve our productivity is using recognized reading methods. This helps us to focus and to be more structured when reading information for reasons of importance, rather than relaxation.
Speed reading
When reading through course manuals for the first time, subconsciously set your reading speed to be just fast enough that you cannot dwell on individual words or tables. With practice, you should be able to read an A4 sheet of paper in one minute. You will not achieve much in the way of a detailed understanding, but your brain will retain a useful overview. This overview will be important later on and will enable you to keep individual issues in perspective with a more generic picture because speed reading appeals to the memory part of the brain. Do not worry about what you do or do not remember at this stage.
Content reading
Once you have speed read everything, you can then start work in earnest. You now need to read a particular section of your course manual thoroughly, by making detailed notes while you read. This process is called Content Reading and it will help to consolidate your understanding and interpretation of the information that has been provided.
Making structured notes on the course manuals
When you are content reading, you should be making detailed notes, which are both structured and informative. Make these notes in a MS Word document on your computer, because you can then amend and update these as and when you deem it to be necessary. List your notes under three headings: 1. Interpretation – 2.Questions – 3. Tasks. The purpose of the 1st section is to clarify your interpretation by writing it down. The purpose of the 2nd section is to list any questions that the issue raises for you. The purpose of the 3rd section is to list any tasks that you should undertake as a result. Anyone who has graduated with a business-related degree should already be familiar with this process.
Organizing structured notes separately
You should then transfer your notes to a separate study notebook, preferably one that enables easy referencing, such as a MS Word Document, a MS Excel Spreadsheet, a MS Access Database, or a personal organizer on your cell phone. Transferring your notes allows you to have the opportunity of cross-checking and verifying them, which assists considerably with understanding and interpretation. You will also find that the better you are at doing this, the more chance you will have of ensuring that you achieve your study objectives.
Question your understanding
Do challenge your understanding. Explain things to yourself in your own words by writing things down.
Clarifying your understanding
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your understanding.
Question your interpretation
Do challenge your interpretation. Qualify your interpretation by writing it down.
Clarifying your interpretation
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your interpretation.
Qualification Requirements
The student will need to successfully complete the project study and all of the exercises relating to the Global Supply Chain Development (GSCD) corporate training program, achieving a pass with merit or distinction in each case, in order to qualify as an Accredited Global Supply Chain Development Specialist (AGSCDS). All monthly workshops need to be tried and tested within your company. These project studies can be completed in your own time and at your own pace and in the comfort of your own home or office. There are no formal examinations, assessment is based upon the successful completion of the project studies. They are called project studies because, unlike case studies, these projects are not theoretical, they incorporate real program processes that need to be properly researched and developed. The project studies assist us in measuring your understanding and interpretation of the training program and enable us to assess qualification merits. All of the project studies are based entirely upon the content within the training program and they enable you to integrate what you have learnt into your corporate training practice.
Global Supply Chain Development (GSCD) – Grading Contribution
Project Study – Grading Contribution
Customer Service – 10%
E-business – 05%
Finance – 10%
Globalization – 10%
Human Resources – 10%
Information Technology – 10%
Legal – 05%
Management – 10%
Marketing – 10%
Production – 10%
Education – 05%
Logistics – 05%
TOTAL GRADING – 100%
Qualification grades
A mark of 90% = Pass with Distinction.
A mark of 75% = Pass with Merit.
A mark of less than 75% = Fail.
If you fail to achieve a mark of 75% with a project study, you will receive detailed feedback from the Certified Learning Provider (CLP) and/or Accredited Consultant, together with a list of tasks which you will need to complete, in order to ensure that your project study meets with the minimum quality standard that is required by Appleton Greene. You can then re-submit your project study for further evaluation and assessment. Indeed you can re-submit as many drafts of your project studies as you need to, until such a time as they eventually meet with the required standard by Appleton Greene, so you need not worry about this, it is all part of the learning process.
When marking project studies, Appleton Greene is looking for sufficient evidence of the following:
Pass with merit
A satisfactory level of program understanding
A satisfactory level of program interpretation
A satisfactory level of project study content presentation
A satisfactory level of Unique Program Proposition (UPP) quality
A satisfactory level of the practical integration of academic theory
Pass with distinction
An exceptional level of program understanding
An exceptional level of program interpretation
An exceptional level of project study content presentation
An exceptional level of Unique Program Proposition (UPP) quality
An exceptional level of the practical integration of academic theory
Preliminary Analysis
Global Supply Chain Development (GSCD)
It would help if program students spent some time researching Global Supply Chain Development (GSCD), before their 1st Workshop Development Process (WDP1), in order to establish an understanding of the purpose and benefits of this process, providing an educational foundation to build upon.
Global Supply-Chain
Over the last three decades, the progressive liberalization of cross-border transactions, advances in production technology and information services, and improvement in transport logistics and services have provided firms with greater incentives to fragment production processes and to geographically delocalize them. Global supply or production chains (GSCs), where cost reduction strategies result in goods often being produced with intermediate inputs originating from several countries, are now common in many industries and extend over to an increasing number of developing countries. From an economic standpoint, the emergence of GSCs is related to the concept of comparative advantage. By relocating production processes (i.e. R&D, concept, design, manufacturing, packaging, marketing, distribution and retailing) in different countries, transnational corporations (TNCs) can take advantage of the best available human or physical resources in different countries, with a view to maintaining their competitiveness by augmenting productivity and minimizing costs. For developing countries and their enterprises, the potential opportunities from joining GSCs are substantial. Indeed, integration into GSCs has become an important pillar of their policies for export-led development. GSCs enable producers within the chain to obtain modern management know-how and hands-on information on quality standards and technology, and thus to become more competitive. Such producers also quickly learn about demand patterns in high-income markets and consumer preferences in such markets. Participation in GSCs could also create economy-wide externalities for developing countries, such as employment, improvement in technology and skills, productive capacity upgrading and export diversification into more value added. In turn, those externalities would increase their attractiveness for more foreign direct investment. These potential gains explain the acute interest of policymakers in many developing countries over ways to link their private sectors to GSCs. However, GSCs are fundamentally a business strategy of TNCs, and are driven by their own business interests. Low labour costs alone are not a sufficient justification for relocating a part of TNCs’ production processes. GSCs also rely on sophisticated and competitive networks of goods and information flow. Participating and upgrading along the chains require not only manufacturing skills but also a sound business environment that are often lacking in developing countries. GSCs have different structures depending on three main factors: (1) the geography and nature of linkages between tasks in the chain; (2) the distribution of power among lead firms (TNCs) and other actors in the chain; and (3) the role of government institutions and policies in structuring business relationships and industrial location.
The first factor, the geographical structure, is determined by the extent of fragmentation of production processes and by their delocalization. While the extent of fragmentation is generally specific to the sector, the choice of where to delocalize production processes depends not only on production and trade costs but also on the potential size of the domestic/regional market, as well as on the proximity to high-income markets. The extent to which local markets are integrated with regional/international markets both in regard to trade policies and infrastructure development is also important.
The second factor, the distribution of power among the various firms of GSCs, is reflected in the different organizational structures of GSCs. Their structures can be classified in terms of the relational linkage between the buyers (lead firm) and their suppliers of manufactures. One extreme is the case of vertical integration where some of the manufacturing stages are directly owned by the lead firm while certain parts and components may be bought from contract suppliers. The other extreme is the case of a contractual relationship at arm’s length, where buyers do not necessarily know and do not own their suppliers. Numerous types of ownership structures can be found anywhere within the wide spectrum of the buyer-supplier relationship. The third factor is related to government intervention. Governments play an important role in facilitating the integration of domestic firms into GSCs. Governments have often recurred to trade policies to increase the competitiveness of their enterprises, especially by seeking preferential market access. Indeed, by lowering trade costs trade policies can help to integrate domestic firms into GSCs. However, trade policies although still important are not sufficient in the GSCs business model. The removal of behind-the-border trade-related barriers is also necessary. Moreover, policies aimed at improving the overall business environment are essential to facilitating the integration of domestic firms into markets that are increasingly dominated by GSCs. The first two factors do not pose policy implications and are largely dependent on the business model of a specific economic sector. Therefore, the special focus of this paper is to provide some insights on the third factor so as to see how government institutions and policies, particularly trade policies, may influence the participation of developing country enterprises in GSCs, including progressive process and production upgrading and export value addition with economy-wide effects.
Trade and Economic Policy
Trade policies directly affect the integration of domestic firms into GSCs in two major ways. First, trade policies can add to the cost of inputs. Excessive tariffs on intermediate products make countries less attractive to global investment and are detrimental to the localization of production processes. Second, unfavourable market access conditions would put assemblers in a position of relative disadvantage when distributing final products to consumers. To minimize this cost, lead companies generally prefer delocalizing the last blocks of GSCs in countries with duty free or preferential access to final markets. This is one of the reasons why preferential trade agreements improving access to developed country markets are important determinants in the localization of production processes. Another policy response is illustrated by the WTO multilateral Information Technology Agreement (ITA), which eliminated MFN tariffs on a wide range of computer-related equipment (including semiconductors and software), as well as telecommunication and certain office equipment. These goods represent a crucial flow of international trade amounting to about US$4 trillion. Today ITA has 73 WTO members States, including both developed and developing countries, and covers about 97 per cent of world trade in information technology products. Trade policy is often directed to protect final products rather than intermediate products. This provides an advantage to the localization of the last blocks of production processes in consumers’ markets. The relatively lower tariff on intermediate products provides a greater incentive to import them (and thus to be produced in developing countries). On the other hand, the higher tariff on final products provides an incentive to localize assembly in large (or potentially large) consumer markets, or in countries enjoying free access to consumer markets. This trend, where tariffs increase along the production chain, is generally referred to as tariff escalation. Tariff escalation is often used to provide an advantage to domestic firms engaged in the assembly of the higher value added final product rather than in the provision of low value added intermediate products.
Overall trade policy is captured by two indicators: effectively applied tariffs imposed on intermediate products, and those tariffs faced by final products. The overall business environment is measured by the World Bank’s Doing Business Index. This Index provides a measure of various aspects affecting the business environment, including government regulations such as for starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, enforcing contracts and closing a business. Although all of these indicators normally ameliorate with the growth of GDP per capita, they are also positively correlated with participation in GSCs. Countries with economies more integrated into GSCs tend to have more open trade policies, face lower market access restrictions in high-income markets (the main location of lead firms), and have a more conducive business environment. The reason for the correlation is that the effectiveness of business models behind GSCs is highly dependent on the above variables.
By abating trade costs, more open market access conditions do contribute to the integration of countries into GSCs. However, given the already low level of effectively applied tariffs, the additional advantage provided by further trade liberalization through unilateral measures or market access negotiations is generally not large. For example, for low-income countries, a reduction in the applied tariff on intermediate products from the existing average of 3.22 per cent to 1.37 per cent (a level similar to that of middle-income countries) would increase their trade in intermediate products by about 8 per cent. A similar effect would result from an improvement in market access (a reduction in the tariff faced by their final and processed products from 3.19 per cent to 1.5 per cent). It also appears that middle- and low-income countries could achieve similar trade effects through the better functioning of existing export processing zones (EPZs) and more efficient management of formally applied duty drawback systems so as to implicitly eliminate or reduce tariffs on imported inputs for export-oriented enterprises. On the other hand, a sizable improvement of the business environment would result in far more positive effects on the growth of trade in intermediate products, particularly for middle- and low-income countries (for both developing countries and economies in transition). Tariffs are traditional price-based trade policy instruments, while non-tariff measures can also add to the cost of trading and thus have an impact on the extent to which firms and countries integrate into GSCs. Although the information costs of non-traditional trade barriers are often internalized by lead firms, some of these barriers still add to the overall costs of moving goods along the chain. In particular, non-tariff measures such as standards, technical regulations, conformity assessment systems, complex rules of origin, subsidies and restrictive trade-related financial and investment regulations that protect domestic industries from foreign competition have today a relatively greater and growing importance in shaping the participation in GSCs. Removal of such barriers through, e.g. a deeper integration through regional preferential trade agreements (RTAs), is found to double trade in intermediate products among their members. Today almost all RTAs include trade facilitation and technical assistance measures. These agreements do facilitate the de-localization of production processes by removing behind-the-border obstacles to trade.
However, as an increasing number of developing and developed countries move towards freer trade via RTAs, the relative advantage provided by open trade policies is not sufficient to make a country attractive for the localization of global production processes. Economic policies that reduce overall business costs or minimize the risks from international business relationships may be of greater value for facilitating integration into GSCs. Thus, policies that improve trade-related infrastructures, increase competition in trade-related services, facilitate business start-ups, guarantee the rule of law and contract enforcement, and provide fiscal and other incentives to foreign firms are essential.
In addition, the effectiveness of government institutions and their capacity to implement policies are critical. GSCs also often involve long-term investments that require equally long-term government commitments with regard to stable and predictable policies. For example, political instability and the resulting government policy instability is detrimental for turning domestic firms into reliable suppliers of GSCs. Econometric estimation suggests that an improvement in government effectiveness in low-income countries to match that of middle-income countries would increase the former’s exports of intermediate products by almost 50 per cent. The larger importance of business environment and government effectiveness for GSCs is directly related to their increasing sophistication and drive for efficiency. GSCs are extremely competitive not only because they take advantage of localization due to lower labour costs, but more so because such competitiveness comes from a sophisticated management of the chain. The majority of modern GSCs appear to rely more on the ability to move goods continuously, safely and economically than on lower labour costs. In this regard, one of the key aspects of GSCs is synchronization: goods flow in and out of chains in a just-in-time process, so as to keep costly inventories at a minimum. However, when inventories are low and a problem occurs in any of the production blocks, it quickly spreads along the entire chain with snowballing costs. GSCs are often as fragile and prone to failure as is their weakest supplier. Thus, it is crucial that all players in a chain are fully reliable. In practice, there is a trade-off between the reliability of suppliers and production costs. In general, the more knowledge-intensive a product is, the more GSCs are dependent on specialized and reliable suppliers. This is one of the reasons why most of LDCs’ enterprises are stuck in a low value added segment of chains, and are operating in sectors where chains are shorter and less technologically intensive (i.e. the apparel and agro-food sectors). Another issue that hinders the participation of developing countries in GSCs is the relative lack of medium- sized and large enterprises. Small enterprises often face additional obstacles that make it difficult to enter GSCs. For example, GSCs require investments to guarantee timely shipments and high quality parts and components. Difficulty in investing in productive and trading capacity is one of the reasons that small enterprises are often locked into low value added production processes with little opportunity to upgrade along the value chain. Most importantly, small enterprises are also disadvantaged as they rarely have management expertise able to meet the complex problems that GSC management involves. Moreover, small enterprises often supply a single lead firm, thus making the entrepreneurship less dynamic and more vulnerable to shocks. An essential element in GSC integration is the availability of skilled labour. The production of goods for international markets, particularly by means of supplying a GSC, requires a skilled labour force, with technical, managerial and entrepreneurial expertise. Therefore, from a policy perspective, there is a need to invest in the development of human skills and capabilities, as well as in knowledge-based services. It is also important to allow for qualified foreign labour permits so as to import missing critical skills.
Finally, in cases where the lead firm owns part of the GSC, tax policy is an important determinant for the localization of production. By looking at the differences in taxation across countries, lead firms tend to optimize supply chains also based on tax efficiency.
The Value Chain
Although participation in GSCs helped a number of developing countries to expand exportoriented industries, in many cases, the value added from such activities did not increase markedly over previous commodity-based exports. To rise along the value chain, an industrial or process upgrading is required. Gereffi, Humphrey, and Sturgeon (2005) define industrial upgrading as “the process by which economic actors – nations, firms and workers – move from low-value to relatively high-value activities in global production networks”. Process upgrading occurred in most regions, although to a different extent. In 1993, Latin America, East Europe and East and South-East Asia had largely a similar level of export sophistication. By 2008, export sophistication increased in all of those regions, though the largest increment was observed for East and South-East Asia. Similarly, in 1993 the average level of export sophistication of South Asian and sub-Saharan African countries were similar, but by 2008 South Asian export sophistication was much higher. Furthermore, some of these countries were able to increase their export sophistication by transforming export-oriented industries (as parts of GSCs) from those based on raw materials and low-technology manufacturing (agro-food, apparel, footwear, etc.) to ones dominated by medium-technology exports. An important policy question is why some developing countries were able to surge ahead in diversifying into more value addition within GSCs, while others did not succeed. Many of the factors mentioned above are quite relevant in this regard. Indeed, sound macroeconomic policies, a favourable business environment, the development of human capital, economic links to high income markets, sector-specific industrial development policies, natural resources endowments all determine the success or failure of the export diversification of countries. Still many questions remain open. To properly address those questions, there is a need for more research and better data, including those on TNCs as lead firms. Knowledge of production processes is one of the keys to industrial upgrading and export diversification. For countries that are lagging behind, knowledge must come from absorbing it from elsewhere. GSCs can be a powerful force in enabling technology transfers and industrial process upgrading. In this regard, many mechanisms were examined, from arm’s length technological borrowing to a range of practices that encompass technology licensing, reverse engineering, the injection of equipment and know-how through foreign direct investment and firm level adaptation, to demands made by both foreign affiliates and overseas buyers. One important question that needs to be studied more deeply is what makes lead firms in GSCs transfer higher value added processes to developing countries. So far, the evidence suggests that lead firms tend to outsource lower value added activities (including final assembly), while retaining control over the higher value added areas of their core competency, such as R&D, intellectual property, design and distribution.
Policy Issues
Being able to participate in GSCs may be a sign of a country’s growing productive capacity. Moreover, having a strong relational linkage with the lead firm in a supply chain could enhance a transfer of knowledge, technology and even financial capital into the suppliers’ country. In this way, participating in a GSC can play a catalytic role in a developing country’s economic growth through productive capacity upgrading. However, such a level of GSC participation appears to be possible only for countries which already have some prerequisite productive capacity, which are mainly middle- to higher-middle income countries. Technology transfer within a GSC is not automatic. Lead firms, especially those of products or production technique/processes with high intellectual property content, may restrictively control technical and technological spill over to subcontracted suppliers. In addition, the investment strategies of TNCs should be borne in mind. For example, there is evidence to suggest that much of the profits of the United States of America’s lead firms’ during 1996–2006 was financialized (through share buyback or a dividend increase) “… to raise shareholder value, rather than investing in productive assets that raise productivity, growth, employment and income.” Would a new model of social business-linked FDI, such as the Grameen Danone Foods Ltd, provide a useful insight into a new architecture of a global/regional supply chain? As regards low-income countries, being a part of a GSC could be seen as probably the more rapid way to become integrated into the global trade in manufactures and services. However, the segments within a GSC, in which low-income countries mostly participate are limited to the bottom of the value added ladder with a low barrier to entry – these are labor-intensive products with low-tech requirements and low set-up costs, such as assembly in apparel and light manufacturing industries. Low barriers to entry often create price-cutting competition among supplier countries. As a result, declining net barter terms of manufacture trade in such low income countries was observed over the past decade. Also problematic is that the relational linkages between the lead firm and the supplier in these industries are often very loose and unstable. Lead firms benefit from the severe competition among numerous and almost identical suppliers and select the ones that meet their short-term requirements. The potential negative effects of such unstable contracts, particularly to the local labor market, were noted by many researchers. The challenge to suppliers and governments of low-income countries is to transform the declining net barter terms of trade into an increase in income terms of trade through larger export volumes (i.e. winning over the competitors) or through concurrently achieving a growth in factorial terms of trade, i.e. a productivity increase. For a local supplier to win a more durable relationship with the lead firm, it needs to become cheaper, better in quality, quicker in delivery, and more reliable than its competitors within an industry. Such process upgrading could lead suppliers to move upwards to a higher value added segment in a GSC, e.g. a move from a standard mass production into more design-specific and other requirement-specific production. Firms in a low-income country often face higher obstacles in achieving both process and product upgrading. Government support can play a role especially in regard to investment promotion policies to attract more buyers (lead firms); reducing tariff and non-tariff barriers for imported production inputs; and bottoming up the supply efficiency, by improving business environment, transport, logistics, education and training; guaranteeing long-term commitments in policies (especially trade and fiscal policies) so as to minimize the risk for foreign enterprises and business relationships. Non-policy factors are also among the determinants of a successful process and product upgrading. Those include (a) the length of the value chain to the final product (or depth in the manufacturing segment), i.e. how many parts and components to move into; (b) product characteristics (standard or differentiated); (c) the structure of a GSC; (d) the interest of a leading firm in assisting with the product upgrading (though technology/financial injection); (e) the market situation (competitors, stepladders vacated or not, etc.); and (f) the comparative advantage, including geographical and/or population consumption assets (e.g. being close to a big market, having a large domestic market). As Rob Davies, Minister of Trade and Industry, South Africa put it, “Identification and choice of sectoral interventions is based on identification of first-order constraints that cut across most of these sectors and sectoral “self-discovery” processes. The latter involve a combination of research of international and domestic trends, consultation with key stakeholders – particularly business and labor, policy and instrument design attached to appropriate conditionality and periodic review and adaptation.”
Size Matters
The size of a country matters in a GSC. A large domestic market by itself attracts foreign firms to set up a basis and localize thereafter some or main segments of their GSCs targeting both exports and domestic consumption. Smaller developing countries have less leverage in creating a strong relational linkage with lead firms. A solution for such countries is also to diversify into new markets, in particular regional (neighbouring) markets, in addition to their efforts to integrate into GSCs. A recent study by UNCTAD suggests that Asian LDCs’ exports to other developing countries, which are mostly their neighbouring countries, are higher in factor intensity. That is to say that South-South trade, especially within a region, may offer some alternative upgrading opportunities to low-income countries. Governments within a region can also collaborate with each other in the areas of improving the market information flows of a given industry/sector (e.g. agroprocessing) or establishing a regional laboratory for product quality assessment. Regional collaboration could be equally useful for R&D for products/services that are best suited to the demands of regional consumers (with much less disposable income compared to OECD consumers), with an added new technological element. Distance is often assumed to be among the main determinants of trade costs and thus also of countries’ participation in GSCs. However, it is not distance itself that is a direct hindrance to trade, but rather transport costs and transport connectivity, which in turn are related to the facility with which merchandise trade can be carried out. An UNCTAD study on the Caribbean region found that distance explains around 20 per cent of the variance of maritime freight rates, while competition among liner shipping companies and economies of scales each have a far stronger impact on the freight rate. When there are 5 or more competing carriers providing direct services, the freight rate is one third lower than when there are four or fewer providers. This example suggests that the strategic liberalization of transport services, through its impact on competition and economies of scale can have an important and in some cases perhaps decisive impact on the establishment of regional trade connections and participation in GSCs. Transport infrastructure and services together with trade facilitation and modern customs procedures are a sine qua non both for export competitiveness and for a country’s participation in GSCs. As global transport networks expand and ships get larger and port traffic grows, many LDCs are lagging behind and are not catching up as regards their access to shipping services. While globally the international liner shipping network is expanding, for many LDCs the number of shipping companies providing services from and to their ports is stagnant or even decreasing. Without effective international transport connections, trade cannot grow. While trade and transport facilitation is usually a good long-term investment, it still requires financial resources. Globally, during recent years, technical and financial assistance to support trade and transport facilitation has increased significantly. However, most of this additional assistance has gone to middle-income developing countries, and not as much to LDCs. In LDCs, it appears that the resources of donors may compete with other priorities, such as health or education. Many practical solutions to trade and transport facilitation reforms require regional or bilateral cooperation, for example as regards transit, the harmonization of documents, the recognition of certificates, transport infrastructure, coordination at border crossings and so on.
Objective of the Corporate Training Program
– Understand the rationale for the development of Global Supply Chain Development and Management
– Understand the contribution of a defined supply chain strategy to an organizations overall operating efficiency
– Reveal the analytics of benefit accrual from the implementation of a systemic approach to GSCD
– Understand the relational dynamic between procurement, suppliers, logistics and how they affect your GSCD efforts
– Understand the major challenges that organizations face in developing and implementing supply chain strategy
– Exposure of key tools and measurement metrics for deploying GSCD
Implementation Plan
Break the engagement into phases I – V; Determine clients’ needs relative to time and budget that will condition the cadence of GSCD phase deployment of instruction or learning; Evaluate group size for best learning scenario; Hand outs and Power Point Presentations for the program participants; Follow up with client to refine approach or expand or compress mission scope.
Course Manuals
Course Manual – Customer Service
Customer service is the provision of service to customers before, during and after a purchase. Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. The importance of customer service may vary by product or service, industry and customer. The perception of success of such interactions will be dependent on employees “who can adjust themselves to the personality of the guest,” according to Micah Solomon. From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization’s ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization. Some have argued that the quality and level of customer service has decreased in recent years, and that this can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service policy. To address this argument, many organizations have employed a variety of methods to improve their customer satisfaction levels, and other key performance indicators (KPIs). Good customer service involves developing bonds with customers, hopefully leading to long term relationships. It creates advantages for both customers and the business alike. Customers benefit because the business is providing a service that meets their needs. The business benefits because satisfied customers are likely to be repeat customers. They will stay with the business. However, good customer service is not easily achieved. It takes time to establish. It requires investment to deliver consistent standards. A large part of customer service success is creating a seamless experience. Customer needs are anticipated; systems are in place; employees are trained. The company runs like a well-oiled machine. But what happens when the unexpected happens? Customers have an unusual request or they simply don’t know the rules of the system? The unexpected, provides the opportunity to stretch the system, improve the system, or even forget the system and impress a customer.
Consistently deliver upon promises
Customers are more likely to feel loyalty towards a company if they can be sure they are going to get exactly what they need from the company without any delays or problems. The company should not make promises that they cannot keep as this may damage their reputation.
Focus in detail
Very often it is the little things that make customers feel valued by a company and therefore they are likely to remain loyal. Small touches such as addressing customers by their name and showing a genuine interest in the customers can make all the difference.
Providing value
If customers know they can rely on the product or service and it is going to serve their needs then they will continue to use it. The company may need to adapt the product or service as required in order for it to continue to meet customer needs.
Customer loyalty
Reward loyal customers by letting them become the first to know about any upcoming offers or promotions that the company is offering. This can be extended by making special deals available to selected customers before they are rolled out to everyone.
Exceed expectations
Exceptional customer service is a great way for a company to earn loyalty from its customers. Customers will remember your brand when you go out of your way to help them. It is this kind of experience that customers will share with others.
Problem resolution
Experiencing problems with a product that customers have purchased from a company may not in itself be a disaster, especially if the customer is loyal and has had no previous problems with the company. What can cause a problem though is if the customer finds it difficult or time consuming to rectify the issue.
Incentive schemes
A loyalty program where the customer can accumulate points which can be redeemed for money off purchases can be the difference if the customer is choosing between two similar businesses. Customers like to feel rewarded for their loyalty. This kind of program can also be used as a marketing strategy.
Employee loyalty
Customers can tell if an employee is really dedicated to the company they work for or whether they are only there for the money. An employee’s enthusiasm for the company and for the products or services they offer can be infectious. This will create a more enjoyable experience for the customers and make them more likely to return.
Customer feedback
This will serve two purposes. Firstly it will make the customers feel engaged with the company which will enhance their feelings of loyalty. Secondly it can give the company the chance to see what they are doing right and if there are any areas where they can improve.
Companies spend a lot of money on marketing in order to devise strategies that will attract new customers. While these strategies are important, then remember that they will be most effective when they are implemented with the needs of the customers in mind. As much effort should be put into retaining existing, loyal customers as there is in attracting new ones.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Customer Service section of the course manual is to enable the Head of the Customer Service Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Customer Service projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – E-Business
e-business, is the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses. The term “e-business” was coined by IBM’s marketing and Internet teams in 1996. Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers. The internet is a public through way. Firms use more private and hence more secure networks for more effective and efficient management of their internal functions. In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems. E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these. Basically, electronic commerce (EC) is the process of buying, transferring, or exchanging products, services, and/or information via computer networks, including the internet. EC can also be beneficial from many perspectives including business process, service, learning, collaborative, community. EC is often confused with e-business.
Security
E-Business systems naturally have greater security risks than traditional business systems, therefore it is important for e-business systems to be fully protected against these risks. A far greater number of people have access to e-businesses through the internet than would have access to a traditional business. Customers, suppliers, employees, and numerous other people use any particular e-business system daily and expect their confidential information to stay secure. Hackers are one of the great threats to the security of e-businesses. Some common security concerns for e-Businesses include keeping business and customer information private and confidential, authenticity of data, and data integrity. Some of the methods of protecting e-business security and keeping information secure include physical security measures as well as data storage, data transmission, anti-virus software, firewalls, and encryption to list a few.
Privacy and confidentiality
Confidentiality is the extent to which businesses makes personal information available to other businesses and individuals. With any business, confidential information must remain secure and only be accessible to the intended recipient. However, this becomes even more difficult when dealing with e-businesses specifically. To keep such information secure means protecting any electronic records and files from unauthorized access, as well as ensuring safe transmission and data storage of such information. Tools such as encryption and firewalls manage this specific concern within e-business.>/p>
Authenticity
E-business transactions pose greater challenges for establishing authenticity due to the ease with which electronic information may be altered and copied. Both parties in an e-business transaction want to have the assurance that the other party is who they claim to be, especially when a customer places an order and then submits a payment electronically. One common way to ensure this is to limit access to a network or trusted parties by using a virtual private network (VPN) technology. The establishment of authenticity is even greater when a combination of techniques are used, and such techniques involve checking “something you know” (i.e. password or PIN), “something you need ” (i.e. credit card), or “something you are” (i.e. digital signatures or voice recognition methods). Many times in e-business, however, “something you are” is pretty strongly verified by checking the purchaser’s “something you have” (i.e. credit card) and “something you know” (i.e. card number).
Data integrity
Data integrity answers the question “Can the information be changed or corrupted in any way?” This leads to the assurance that the message received is identical to the message sent. A business needs to be confident that data is not changed in transit, whether deliberately or by accident. To help with data integrity, firewalls protect stored data against unauthorized access, while simply backing up data allows recovery should the data or equipment be damaged.
Non-repudiation
This concern deals with the existence of proof in a transaction. A business must have assurance that the receiving party or purchaser cannot deny that a transaction has occurred, and this means having sufficient evidence to prove the transaction. One way to address non-repudiation is using digital signatures. A digital signature not only ensures that a message or document has been electronically signed by the person, but since a digital signature can only be created by one person, it also ensures that this person cannot later deny that they provided their signature.
Access control
When certain electronic resources and information is limited to only a few authorized individuals, a business and its customers must have the assurance that no one else can access the systems or information. Fortunately, there are a variety of techniques to address this concern including firewalls, access privileges, user identification and authentication techniques (such as passwords and digital certificates), Virtual Private Networks (VPN), and much more.
Availability
This concern is specifically pertinent to a business’ customers as certain information must be available when customers need it. Messages must be delivered in a reliable and timely fashion, and information must be stored and retrieved as required. Because availability of service is important for all e-business websites, steps must be taken to prevent disruption of service by events such as power outages and damage to physical infrastructure. Examples to address this include data backup, fire-suppression systems, Uninterrupted Power Supply (UPS) systems, virus protection, as well as making sure that there is sufficient capacity to handle the demands posed by heavy network traffic.
Common security measures
Many different forms of security exist for e-businesses. Some general security guidelines include areas in physical security, data storage, data transmission, application development, and system administration.
Physical security
Despite e-business being business done online, there are still physical security measures that can be taken to protect the business as a whole. Even though business is done online, the building that houses the servers and computers must be protected and have limited access to employees and other persons. For example, this room should only allow authorized users to enter, and should ensure that “windows, dropped ceilings, large air ducts, and raised floors” do not allow easy access to unauthorized persons. Preferably these important items would be kept in an air-conditioned room without any windows. Protecting against the environment is equally important in physical security as protecting against unauthorized users. The room may protect the equipment against flooding by keeping all equipment raised off of the floor. In addition, the room should contain a fire extinguisher in case of fire. The organization should have a fire plan in case this situation arises. In addition to keeping the servers and computers safe, physical security of confidential information is important. This includes client information such as credit card numbers, checks, phone numbers, etc. It also includes any of the organization’s private information. Locking physical and electronic copies of this data in a drawer or cabinet is one additional measure of security. Doors and windows leading into this area should also be securely locked. Only employees that need to use this information as part of their job should be given keys. Important information can also be kept secure by keeping backups of files and updating them on a regular basis. It is best to keep these backups in a separate secure location in case there is a natural disaster or breach of security at the main location. “Failover sites” can be built in case there is a problem with the main location. This site should be just like the main location in terms of hardware, software, and security features. This site can be used in case of fire or natural disaster at the original site. It is also important to test the “failover site” to ensure it will actually work if the need arises. State of the art security systems, such as the one used at Tidepoint’s headquarters, might include access control, alarm systems, and closed-circuit television. One form of access control is face (or another feature) recognition systems. This allows only authorized personnel to enter, and also serves the purpose of convenience for employees who don’t have to carry keys or cards. Cameras can also be placed throughout the building and at all points of entry. Alarm systems also serve as an added measure of protection against theft.
Data storage
Storing data in a secure manner is very important to all businesses, but especially to e-businesses where most of the data is stored in an electronic manner. Data that is confidential should not be stored on the e-business’ server, but instead moved to another physical machine to be stored. If possible this machine should not be directly connected to the internet, and should also be stored in a safe location. The information should be stored in an encrypted format. Any highly sensitive information should not be stored if it is possible. If it does need to be stored, it should be kept on only a few reliable machines to prevent easy access. Extra security measures should be taken to protect this information (such as private keys) if possible. Additionally, information should only be kept for a short period of time, and once it is no longer necessary it should be deleted to prevent it from falling into the wrong hands. Similarly, backups and copies of information should be kept secure with the same security measures as the original information. Once a backup is no longer needed, it should be carefully but thoroughly destroyed.
Data transmission and application development
All sensitive information being transmitted should be encrypted. Businesses can opt to refuse clients who can’t accept this level of encryption. Confidential and sensitive information should also never be sent through e-mail. If it must be, then it should also be encrypted. Transferring and displaying secure information should be kept to a minimum. This can be done by never displaying a full credit card number for example. Only a few of the numbers may be shown, and changes to this information can be done without displaying the full number. It should also be impossible to retrieve this information online. Source code should also be kept in a secure location. It should not be visible to the public. Applications and changes should be tested before they are placed online for reliability and compatibility.
System administration
Security on default operating systems should be increased immediately. Patches and software updates should be applied in a timely manner. All system configuration changes should be kept in a log and promptly updated.
System administrators should keep watch for suspicious activity within the business by inspecting log files and researching repeated logon failures. They can also audit their e-business system and look for any holes in the security measures. It is important to make sure plans for security are in place but also to test the security measures to make sure they actually work. With the use of social engineering, the wrong people can get a hold of confidential information. To protect against this, staff can be made aware of social engineering and trained to properly deal with sensitive information. E-businesses may use passwords for employee logons, accessing secure information, or by customers. Passwords should be made impossible to guess. They should consist of both letters and numbers, and be at least seven to eight digits long. They should not contain any names, birth dates, etc. Passwords should be changed frequently and should be unique each time. Only the password’s user should know the password and it should never be written down or stored anywhere. Users should also be locked out of the system after a certain number of failed logon attempts to prevent guessing of passwords.
Security solutions
When it comes to security solutions, there are some main goals that are to be met. These goals are data integrity, strong authentication, and privacy.
Access and data integrity
There are several different ways to prevent access to the data that is kept online. One way is to use anti-virus software. This is something that most people use to protect their networks regardless of the data they have. E-businesses should use this because they can then be sure that the information sent and received to their system is clean. A second way to protect the data is to use firewalls and network protection. A firewall is used to restrict access to private networks, as well as public networks that a company may use. The firewall also has the ability to log attempts into the network and provide warnings as it is happening. They are very beneficial to keep third-parties out of the network. Businesses that use Wi-Fi need to consider different forms of protection because these networks are easier for someone to access. They should look into protected access, virtual private networks, or internet protocol security. Another option they have is an intrusion detection system. This system alerts when there are possible intrusions. Some companies set up traps or “hot spots” to attract people and are then able to know when someone is trying to hack into that area.
Encryption
Encryption, which is actually a part of cryptography, involves transforming texts or messages into a code which is unreadable. These messages have to be decrypted in order to be understandable or usable for someone. There is a key that identifies the data to a certain person or company. With public key encryption, there are actually two keys used. One is public and one is private. The public one is used for encryption, and the private for decryption. The level of the actual encryption can be adjusted and should be based on the information. The key can be just a simple slide of letters or a completely random mix-up of letters. This is relatively easy to implement because there is software that a company can purchase. A company needs to be sure that their keys are registered with a certificate authority.
Digital certificates
The point of a digital certificate is to identify the owner of a document. This way the receiver knows that it is an authentic document. Companies can use these certificates in several different ways. They can be used as a replacement for user names and passwords. Each employee can be given these to access the documents that they need from wherever they are. These certificates also use encryption. They are a little more complicated than normal encryption however. They actually used important information within the code. They do this in order to assure authenticity of the documents as well as confidentiality and data integrity which always accompany encryption. Digital certificates are not commonly used because they are confusing for people to implement. There can be complications when using different browsers, which means they need to use multiple certificates. The process is being adjusted so that it is easier to use.
Digital signatures
A final way to secure information online would be to use a digital signature. If a document has a digital signature on it, no one else is able to edit the information without being detected. That way if it is edited, it may be adjusted for reliability after the fact. In order to use a digital signature, one must use a combination of cryptography and a message digest. A message digest is used to give the document a unique value. That value is then encrypted with the sender’s private key.>
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the E-business section of the course manual is to enable the Head of the E-business Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within E-business projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Finance
Finance is a field within economics that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that one unit of currency today is worth more than one unit of currency tomorrow. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-categories: public finance, corporate finance and personal finance. Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms. Corporate finance generally involves balancing risk and profitability, while attempting to maximize an entity’s wealth and the value of its stock, and generically entails three primary areas of capital resource allocation. In the first, “capital budgeting”, management must choose which “projects” (if any) to undertake. The discipline of capital budgeting may employ standard business valuation techniques or even extend to real options valuation; see Financial modeling.
The second, “sources of capital” relates to how these investments are to be funded: investment capital can be provided through different sources, such as by shareholders, in the form of equity (privately or via an initial public offering), creditors, often in the form of bonds, and the firm’s operations (cash flow). Short-term funding or working capital is mostly provided by banks extending a line of credit. The balance between these elements forms the company’s capital structure.
The third, “the dividend policy”, requires management to determine whether any un-appropriated profit (excess cash) is to be retained for future investment / operational requirements, or instead to be distributed to shareholders, and if so in what form. Short term financial management is often termed “working capital management”, and relates to cash-, inventory- and debtors management.
Corporate finance also includes within its scope business valuation, stock investing, or investment management. An investment is an acquisition of an asset in the hope that it will maintain or increase its value over time. In investment management – in choosing a portfolio – one has to use financial analysis to determine what, how much and when to invest. Financial management overlaps with the financial function of the Accounting profession. However, financial accounting is the reporting of historical financial information, while financial management is concerned with the allocation of capital resources to increase a firm’s value to the shareholders. Financial risk management, an element of corporate finance, is the practice of creating and protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. (Other risk types include Foreign exchange, Shape, Volatility, Sector, liquidity, Inflation risks, etc.) It focuses on when and how to hedge using financial instruments; in this sense it overlaps with financial engineering. Similar to general risk management, financial risk management requires identifying its sources, measuring it and formulating plans to address these, and can be qualitative and quantitative. In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.
Capital
Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service. (The capital has two types of resources, Equity and Debt). The deployment of capital is decided by the budget. This may include the objective of business, targets set, and results in financial terms, e.g., the target set for sale, resulting cost, growth, required investment to achieve the planned sales, and financing source for the investment. A budget may be long term or short term. Long term budgets have a time horizon of 5-10 years giving a vision to the company; short term is an annual budget which is drawn to control and operate in that particular year. Budgets will include proposed fixed asset requirements and how these expenditures will be financed. Capital budgets are often adjusted annually and should be part of a longer-term Capital Improvements Plan. A cash budget is also required. The working capital requirements of a business are monitored at all times to ensure that there are sufficient funds available to meet short-term expenses.
Financial economics
Financial economics is the branch of economics studying the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. Financial economics concentrates on influences of real economic variables on financial ones, in contrast to pure finance. It centers on managing risk in the context of the financial markets, and the resultant economic and financial models. It essentially explores how rational investors would apply risk and return to the problem of an investment policy. Here, the twin assumptions of rationality and market efficiency lead to modern portfolio theory (the CAPM), and to the Black–Scholes theory for option valuation; it further studies phenomena and models where these assumptions do not hold, or are extended. “Financial economics”, at least formally, also considers investment under “certainty” (Fisher separation theorem, “theory of investment value”, Modigliani-Miller theorem) and hence also contributes to corporate finance theory. Financial econometrics is the branch of financial economics that uses econometric techniques to parametrize the relationships suggested. Although closely related, the disciplines of economics and finance are distinctive. The “economy” is a social institution that organizes a society’s production, distribution, and consumption of goods and services,” all of which must be financed. Economists make a number of abstract assumptions for purposes of their analyses and predictions. They generally regard financial markets that function for the financial system as an efficient mechanism (Efficient-market hypothesis). Instead, financial markets are subject to human error and emotion. New research discloses the mischaracterization of investment safety and measures of financial products and markets so complex that their effects, especially under conditions of uncertainty, are impossible to predict. The study of finance is subsumed under economics as financial economics, but the scope, speed, power relations and practices of the financial system can uplift or cripple whole economies and the well-being of households, businesses and governing bodies within them, sometimes in a single day.
Financial mathematics
Financial mathematics is a field of applied mathematics, concerned with financial markets. The subject has a close relationship with the discipline of financial economics, which is concerned with much of the underlying theory. Generally, mathematical finance will derive, and extend, the mathematical or numerical models suggested by financial economics. In terms of practice, mathematical finance also overlaps heavily with the field of computational finance (also known as financial engineering). Arguably, these are largely synonymous, although the latter focuses on application, while the former focuses on modelling and derivation (see: Quantitative analyst). The field is largely focused on the modelling of derivatives, although other important sub-fields include insurance mathematics and quantitative portfolio problems.
Experimental finance
Experimental finance aims to establish different market settings and environments to observe experimentally and provide a lens through which science can analyze agents’ behavior and the resulting characteristics of trading flows, information diffusion and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions, and attempt to discover new principles on which such theory can be extended. Research may proceed by conducting trading simulations or by establishing and studying the behavior of people in artificial competitive market-like settings.
Behavioral finance
Behavioral Finance studies how the psychology of investors or managers affects financial decisions and markets. Behavioral finance has grown over the last few decades to become central to finance.
Behavioral finance includes such topics as:
– Empirical studies that demonstrate significant deviations from classical theories.
– Models of how psychology affects trading and prices
– Forecasting based on these methods.
– Studies of experimental asset markets and use of models to forecast experiments.
A strand of behavioral finance has been dubbed Quantitative Behavioral Finance, which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Among other topics, quantitative behavioral finance studies behavioral effects together with the non-classical assumption of the finiteness of assets.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Finance section of the course manual is to enable the Head of the Finance Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Finance projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Globalization
The term Globalization (or globalization) refers to processes of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. The term globalization has been increasing use since the mid-1980s and especially since the mid-1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water, air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, sociocultural resources, and the natural environment.
Global business organization
With improvements in transportation and communication, international business grew rapidly after the beginning of the 20th century. International business includes all commercial transactions (private sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries. Such international diversification is tied with firm performance and innovation, positively in the case of the former and often negatively in the case of the latter. Usually, private companies undertake such transactions for profit. These business transactions involve economic resources such as capital, natural and human resources used for international production of physical goods and services such as finance, banking, insurance, construction and other productive activities. International business arrangements have led to the formation of multinational enterprises (MNE), companies that have a worldwide approach to markets and production or one with operations in more than one country. A MNE may also be called a multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald’s and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Businesses generally argue that survival in the new global marketplace requires companies to source goods, services, labor and materials overseas to continuously upgrade their products and technology in order to survive increased competition.
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). Industrialization, advanced transportation, multinational corporations, off-shoring and outsourcing all have a major impact on world trade. The growth of international trade is a fundamental component of globalization. An absolute trade advantage exists when countries can produce a commodity with less costs per unit produced than could its trading partner. By the same reasoning, it should import commodities in which it has an absolute disadvantage. While there are possible gains from trade with absolute advantage, comparative advantage – that is, the ability to offer goods and services at a lower marginal and opportunity cost – extends the range of possible mutually beneficial exchanges. In a globalized business environment, companies argue that the comparative advantages offered by international trade have become essential to remaining competitive.
Trade agreements, economic blocks and special trade zones
Establishment of free trade areas has become an essential feature of modern governments to handle preferential trading arrangements with foreign and multinational entities. A Special Economic Zone (SEZ) is a geographical region that has economic and other laws that are more free-market-oriented than a country’s typical or national laws. “Nationwide” laws may be suspended inside these special zones. The category ‘SEZ’ covers many areas, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial parks or Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC). These are designated areas in which companies are taxed very lightly or not at all in order to encourage economic activity. Free ports have historically been endowed with favorable customs regulations, e.g., the free port of Trieste. Very often free ports constitute a part of free economic zones. A FTZ is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free trade zones are organized around major seaports, international airports, and national frontiers – areas with many geographic advantages for trade. It is a region where a group of countries has agreed to reduce or eliminate trade barriers.
A free trade area is a trade bloc whose member countries have signed a free-trade agreement, which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. If people are also free to move between the countries, in addition to a free-trade area, it would also be considered an open border. The European Union, for example, a confederation of 27 member states, provides both a free trade area and an open border. Qualifying Industrial Zones (QIZ) are industrial parks that house manufacturing operations in Jordan and Egypt. They are a special free trade zones established in collaboration with neighboring Israel to take advantage of the free trade agreements between the United States and Israel. Under the trade agreements with Jordan as laid down by the United States, goods produced in QIZ notified areas can directly access US markets without tariff or quota restrictions, subject to certain conditions. To qualify, goods produced in these zones must contain a small portion of Israeli input. In addition, a minimum 35% value to the goods must be added to the finished product. The brainchild of Jordanian businessman Omar Salah, the first QIZ was authorized by the United States Congress in 1997. The Asia-Pacific has been described as “the most integrated trading region on the planet” because its intra-regional trade accounts probably for as much as 50-60% of the region’s total imports and exports. It has also extra-regional trade: consumer goods exports such as televisions, radios, bicycles, and textiles into the United States, Europe, and Japan fueled the economic expansion. The ASEAN Free Trade Area is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999.
Tax havens
A tax haven is a state, country or territory where certain taxes are levied at a low rate or not at all, which are used by businesses to reduce their tax liabilities. Individuals and/or corporate entities can find it attractive to establish subsidiaries or move themselves to areas with reduced taxation levels. This creates a situation of tax competition among governments. Different jurisdictions tend to be havens for different types of taxes and for different categories of people and companies. States that are sovereign or self-governing under international law have theoretically unlimited powers to enact tax laws affecting their territories, unless limited by previous international treaties. The central feature of a tax haven is that its laws and other measures can be used to avoid the tax laws or regulations of other jurisdictions. The reality is that while many governments try to attack the credibility of competitive or foreign tax havens, in an attempt to protect their own domestic tax interests, many of these governments facilitate their own tax havens, such as Delaware in the USA and a number of British overseas territories and crown dependencies, such as the Cayman Islands. Many businesses which do not require a specific geographical location or extensive labor are set up in tax havens, to minimize tax exposure. Perhaps the best illustration of this is the number of reinsurance companies which have migrated to Bermuda over the years. Other examples include internet based services and group finance companies.
Economic globalization
Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon. Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries. Current globalization trends can be largely accounted for by developed economies integrating with less developed economies by means of foreign direct investment, the reduction of trade barriers as well as other economic reforms and, in many cases, immigration. In 1944, 44 nations attended the Bretton Woods Conference with a purpose of stabilizing world currencies and establishing credit for international trade in the Post-World War II era. While the international economic order envisioned by the conference gave way to the neo-liberal economic order prevalent today, the conference established many of the organizations essential to advancement towards a close-knit global economy and global financial system, such as the World Bank, the International Monetary Fund, and the International Trade Organization. As an example, Chinese economic reform began to open China to globalization in the 1980s. Scholars find that China has attained a degree of openness that is unprecedented among large and populous nations, with competition from foreign goods in almost every sector of the economy. Foreign investment helped to greatly increase product quality and knowledge and standards, especially in heavy industry. China’s experience supports the assertion that globalization greatly increases wealth for poor countries. As of 2005–2007, the Port of Shanghai holds the title as the World’s busiest port. As another example, economic liberalization in India and ongoing economic reforms began in 1991. As of 2009, about 300 million people – equivalent to the entire population of the United States – have escaped extreme poverty. In India, business process outsourcing has been described as the “primary engine of the country’s development over the next few decades, contributing broadly to GDP growth, employment growth, and poverty alleviation”.
Global financial system
By the early 21st century, a worldwide framework of legal agreements, institutions, and both formal and informal economic actors came together to facilitate international flows of financial capital for purposes of investment and trade financing. This global financial system emerged during the first modern wave of economic globalization, marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. The world economy became increasingly financially integrated throughout the 20th century as nations liberalized capital accounts and deregulated financial sectors. With greater exposure to volatile capital flows, a series of financial crises in Europe, Asia, and Latin America had contagious effects on other countries. By the early 21st century, financial institutions had become increasingly large with a more sophisticated and interconnected range of investment activities. Thus, when the United States experienced a financial crisis early in that century, it quickly propagated among other nations. It became known as the global financial crisis and is recognized as the catalyst for the worldwide Great Recession.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Globalization section of the course manual is to enable the Head of the Globalization Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Globalization projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Human Resources
Human resources is the set of individuals who make up the workforce of an organization, business sector, or economy. “Human capital” is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization). Likewise, other terms sometimes used include manpower, talent, labor, or simply people. The professional discipline and business function that oversees an organization’s human resources is called human resource management (HRM, or simply HR). From the corporate objective, employees are viewed as assets to the enterprise, whose value is enhanced by development. Hence, companies will engage in a barrage of human resource management practices to capitalize on those assets. In governing human resources, the following major trends are typically considered:
Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.
Diversity: the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of “baby-boomers” or older employees in comparison to thirty years ago. Advocates of “workplace diversity” advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation etc.
Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is “tight” (i.e. not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc. In regard to how individuals respond to the changes in a labor market, the following must be understood:
Geographical spread: how far is the job from the individual? The distance to travel to work should be in line with the pay offered, and the transportation and infrastructure of the area also influence who applies for a post.
Occupational structure: the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).
Generational difference: different age categories of employees have certain characteristics, for example, their behavior and their expectations of the organization.
Concerns about terminology
One major concern about considering people as assets or resources is that they will be commoditized and abused. Some analysis suggests that human beings are not “commodities” or “resources”, but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the processes, their sequence and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionized nations such as France and Germany have adopted and encouraged such approaches. Also, in 2001, the International Labor Organization decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development, resulting in its “Labor is not a commodity” principle. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting. Another important controversy regards labor mobility and the broader philosophical issue with usage of the phrase “human resources”. Governments of developing nations often regard developed nations that encourage immigration or “guest workers” as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time, the United Nations have come to more generally support the developing nations’ point of view, and have requested significant offsetting “foreign aid” contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts.
Human resource management
Human resource management (HRM, or simply HR) is the management process of an organization’s workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company’s primary liaison with the employees’ representatives (usually a trades union). HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion. In start-up companies, HR’s duties may be performed by trained professionals. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have created programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications.
In the current global work environment, all global companies are focused on retaining the talent and knowledge held by the workforce. All companies are focused on lowering the employee turnover and preserving knowledge. New hiring not only entails a high cost but also increases the risk of the newcomer not being able to replace the person who was working in that position before. HR departments also strive to offer benefits that will appeal to workers, thus reducing the risk of losing knowledge.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Human Resource section of the course manual is to enable the Head of the Human Resource Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Human Resource projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Information Technology
Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise. The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, such as computer hardware, software, electronics, semiconductors, internet, telecom equipment, e-commerce and computer services. In a business context, the Information Technology Association of America has defined information technology as “the study, design, development, application, implementation, support or management of computer-based information systems”. The responsibilities of those working in the field include network administration, software development and installation, and the planning and management of an organization’s technology life cycle, by which hardware and software are maintained, upgraded and replaced.
Infrastructure
Information technology infrastructure is the integrated framework upon which digital networks operate. This infrastructure includes data centers, computers, computer networks, Database Management devices, and a regulatory system. In information technology, and on the Internet, infrastructure is the physical hardware used to interconnect computers and users. Infrastructure includes the transmission media, including telephone lines, cable television lines, and satellites and antennas, and also the routers that transfer data between disparate transmission technologies. In some usages, infrastructure refers to interconnecting hardware and software and not to computers and other devices that are interconnected. However, to some information technology users, infrastructure is viewed as everything that supports the flow and processing of information. Infrastructure companies play a significant role in evolving the Internet. They influence where the interconnections are placed, where data is made accessible, and also how much information can be carried, and how quickly.
Data storage
Early electronic computers such as Colossus made use of punched tape, a long strip of paper on which data was represented by a series of holes, a technology now obsolete. Electronic data storage, which is used in modern computers, dates from the Second World War, when a form of delay line memory was developed to remove the clutter from radar signals, the first practical application of which was the mercury delay line. The first random-access digital storage device was the Williams tube, based on a standard cathode ray tube, but the information stored in it and delay line memory was volatile in that it had to be continuously refreshed, and thus was lost once power was removed. The earliest form of non-volatile computer storage was the magnetic drum, invented in 1932 and used in the Ferranti Mark 1, the world’s first commercially available general-purpose electronic computer. IBM introduced the first hard disk drive in 1956, as a component of their 305 RAMAC computer system. Most digital data today is still stored magnetically on hard disks, or optically on media such as CD-ROMs. Until 2002 most information was stored on analog devices, but that year digital storage capacity exceeded analog for the first time. As of 2007 almost 94% of the data stored worldwide was held digitally: 52% on hard disks, 28% on optical devices, and 11% on digital magnetic tape. It has been estimated that the worldwide capacity to store information on electronic devices grew from less than 3 exabytes in 1986 to 295 exabytes in 2007, doubling roughly every 3 years.
Databases
Database management systems emerged in the 1960s to address the problem of storing and retrieving large amounts of data accurately and quickly. One of the earliest such systems was IBM’s Information Management System (IMS), which is still widely deployed more than 40 years later. IMS stores data hierarchically, but in the 1970s Ted Codd proposed an alternative relational storage model based on set theory and predicate logic and the familiar concepts of tables, rows and columns. The first commercially available relational database management system (RDBMS) was available from Oracle in 1980. All database management systems consist of a number of components that together allow the data they store to be accessed simultaneously by many users while maintaining its integrity. A characteristic of all databases is that the structure of the data they contain is defined and stored separately from the data itself, in a database schema. The extensible markup language (XML) has become a popular format for data representation in recent years. Although XML data can be stored in normal file systems, it is commonly held in relational databases to take advantage of their “robust implementation verified by years of both theoretical and practical effort”. As an evolution of the Standard Generalized Markup Language (SGML), XML’s text-based structure offers the advantage of being both machine and human-readable.
Information management
Information management (IM) is the collection and management of information from one or more sources and the distribution of that information to one or more audiences. This sometimes involves those who have a stake in, or a right to that information. Management means the organization of and control over the planning, structure and organization, controlling, processing, evaluating and reporting of information activities in order to meet client objectives and to enable corporate functions in the delivery of information. Throughout the 1970s this was largely limited to files, file maintenance, and the life cycle management of paper-based files, other media and records. With the proliferation of information technology starting in the 1970s, the job of information management took on a new light, and also began to include the field of data maintenance. No longer was information management a simple job that could be performed by almost anyone. An understanding of the technology involved, and the theory behind it became necessary. As information storage shifted to electronic means, this became more and more difficult. By the late 1990s when information was regularly disseminated across computer networks and by other electronic means, network managers, in a sense, became information managers. Those individuals found themselves tasked with increasingly complex tasks, hardware and software. With the latest tools available, information management has become a powerful resource and a large expense, as well as risk, for many organizations. In short, information management entails organizing, retrieving, acquiring, securing and maintaining information. It is closely related to and overlapping with the practice of data management.
Knowledge management
Knowledge management (KM) is the process of capturing, developing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplined approach to achieving organizational objectives by making the best use of knowledge. An established discipline since 1991, KM includes courses taught in the fields of business administration, information systems, management, and library and information sciences (Alavi & Leidner 1999).] More recently, other fields have started contributing to KM research; these include information and media, computer science, public health, and public policy. Columbia University and Kent State University offer dedicated Master of Science degrees in Knowledge Management. Many large companies and non-profit organizations have resources dedicated to internal KM efforts, often as a part of their business strategy, information technology, or human resource management departments. Several consulting companies provide strategy and advice regarding KM to these organizations. Knowledge management efforts typically focus on organizational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization. KM efforts overlap with organizational learning and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge. It is seen as an enabler of organizational learning and a more concrete mechanism than the previous abstract research.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Information Technology section of the course manual is to enable the Head of the Information Technology Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Information Technology projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Legal
Law is a term which does not have a universally accepted definition, but one definition is that law is a system of rules and guidelines which are enforced through social institutions to govern behavior. Laws can be made by legislatures through legislation (resulting in statutes), the executive through decrees and regulations, or judges through binding precedents (normally in common law jurisdictions). Private individuals can create legally binding contracts, including (in some jurisdictions) arbitration agreements that exclude the normal court process. The formation of laws themselves may be influenced by a constitution (written or unwritten) and the rights encoded therein. The law shapes politics, economics, and society in various ways and serves as a social mediator of relations between people. Under civil law, the following specialties, among others, exist: Contract law regulates everything from buying a bus ticket to trading on derivatives markets. Property law regulates the transfer and title of personal property and real property. Trust law applies to assets held for investment and financial security. Tort law allows claims for compensation if a person’s property is harmed. Constitutional law provides a framework for the creation of law, the protection of human rights and the election of political representatives. Administrative law is used to review the decisions of government agencies. International law governs affairs between sovereign states in activities ranging from trade to military action. To implement and enforce the law and provide services to the public by public servants, a government’s bureaucracy, the military and police are vital. While all these organs of the state are creatures created and bound by law, an independent legal profession and a vibrant civil society inform and support their progress.
International law
International law can refer to three things: public international law, private international law or conflict of laws and the law of supranational organizations. Public international law concerns relationships between sovereign nations. The sources for public international law development are custom, practice and treaties between sovereign nations, such as the Geneva Conventions. Public international law can be formed by international organizations, such as the United Nations (which was established after the failure of the League of Nations to prevent the Second World War), the International Labor Organization, the World Trade Organization, or the International Monetary Fund. Public international law has a special status as law because there is no international police force, and courts (e.g. the International Court of Justice as the primary UN judicial organ) lack the capacity to penalize disobedience. However, a few bodies, such as the WTO, have effective systems of binding arbitration and dispute resolution backed up by trade sanctions. Conflict of laws (or “private international law” in civil law countries) concerns which jurisdiction a legal dispute between private parties should be heard in and which jurisdiction’s law should be applied. Today, businesses are increasingly capable of shifting capital and labor supply chains across borders, as well as trading with overseas businesses, making the question of which country has jurisdiction even more pressing. Increasing numbers of businesses opt for commercial arbitration under the New York Convention 1958. European Union law is the first and, so far, only example of an internationally accepted legal system other than the UN and the World Trade Organization. Given the trend of increasing global economic integration, many regional agreements – especially the Union of South American Nations – are on track to follow the same model. In the EU, sovereign nations have gathered their authority in a system of courts and political institutions. These institutions are allowed the ability to enforce legal norms both against or for member states and citizens in a manner which is not possible through public international law. As the European Court of Justice said in the 1960s, European Union law constitutes “a new legal order of international law” for the mutual social and economic benefit of the member states.
Constitutional and administrative law
Constitutional and administrative law govern the affairs of the state. Constitutional law concerns both the relationships between the executive, legislature and judiciary and the human rights or civil liberties of individuals against the state. Most jurisdictions, like the United States and France, have a single codified constitution with a bill of rights. A few, like the United Kingdom, have no such document. A “constitution” is simply those laws which constitute the body politic, from statute, case law and convention.
Criminal law
Criminal law, also known as penal law, pertains to crimes and punishment. It thus regulates the definition of and penalties for offenses found to have a sufficiently deleterious social impact but, in itself, makes no moral judgment on an offender nor imposes restrictions on society that physically prevent people from committing a crime in the first place. Investigating, apprehending, charging, and trying suspected offenders is regulated by the law of criminal procedure. The paradigm case of a crime lies in the proof, beyond reasonable doubt, that a person is guilty of two things. First, the accused must commit an act which is deemed by society to be criminal, or actus reus (guilty act). Second, the accused must have the requisite malicious intent to do a criminal act, or mens rea (guilty mind). However, for so called “strict liability” crimes, an actus reus is enough. Criminal systems of the civil law tradition distinguish between intention in the broad sense (dolus directus and dolus eventualis), and negligence. Negligence does not carry criminal responsibility unless a particular crime provides for its punishment.
Contract law
Contract law concerns enforceable promises, and can be summed up in the Latin phrase pacta sunt servanda (agreements must be kept). In common law jurisdictions, three key elements to the creation of a contract are necessary: offer and acceptance, consideration and the intention to create legal relations. “Consideration” indicates the fact that all parties to a contract have exchanged something of value. Some common law systems, including Australia, are moving away from the idea of consideration as a requirement. The idea of estoppel or culpa in contrahendo, can be used to create obligations during pre-contractual negotiations. In civil law jurisdictions, consideration is not required for a contract to be binding. In France, an ordinary contract is said to form simply on the basis of a “meeting of the minds” or a “concurrence of wills”. Germany has a special approach to contracts, which ties into property law. Their ‘abstraction principle’ (Abstraktionsprinzip) means that the personal obligation of contract forms separately from the title of property being conferred. When contracts are invalidated for some reason, the contractual obligation to pay can be invalidated separately from the proprietary title. Unjust enrichment law, rather than contract law, is then used to restore title to the rightful owner.
Tort law
Torts, sometimes called delicts, are civil wrongs. To have acted tortuously, one must have breached a duty to another person, or infringed some preexisting legal right. A simple example might be accidentally hitting someone with a cricket ball. Under the law of negligence, the most common form of tort, the injured party could potentially claim compensation for their injuries from the party responsible. The liability for negligence is no doubt based upon a general public sentiment of moral wrongdoing for which the offender must pay. The rule that you are to love your neighbor becomes in law, you must not injure your neighbor; and the lawyer’s question, Who is my neighbor? receives a restricted reply. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbor.
Property law
Property law governs ownership and possession. Real property, sometimes called ‘real estate’, refers to ownership of land and things attached to it. Personal property, refers to everything else; movable objects, such as computers, cars, jewelry or intangible rights, such as stocks and shares. A right in rem is a right to a specific piece of property, contrasting to a right in personam which allows compensation for a loss, but not a particular thing back. Land law forms the basis for most kinds of property law, and is the most complex. It concerns mortgages, rental agreements, licenses, covenants, easements and the statutory systems for land registration. Regulations on the use of personal property fall under intellectual property, company law, trusts and commercial law. Possession may be nine tenths of the law, but not all.
Equity and trusts
Equity is a body of rules that developed in England separately from the “common law”. The common law was administered by judges. The Lord Chancellor on the other hand, as the King’s keeper of conscience, could overrule the judge-made law if he thought it equitable to do so. This meant equity came to operate more through principles than rigid rules. For instance, whereas neither the common law nor civil law systems allow people to split the ownership from the control of one piece of property, equity allows this through an arrangement known as a ‘trust’. ‘Trustees’ control property, whereas the ‘beneficial’ (or ‘equitable’) ownership of trust property is held by people known as ‘beneficiaries’. Trustees owe duties to their beneficiaries to take good care of the entrusted property.
Legal profession
A corollary of the rule of law is the existence of a legal profession sufficiently autonomous to invoke the authority of the independent judiciary; the right to assistance of an advocate in a court proceeding emanates from this corollary – in England the function of barrister or advocate is distinguished from legal counselor (solicitor). As the European Court of Human Rights has stated, the law should be adequately accessible to everyone and people should be able to foresee how the law affects them. In order to maintain professionalism, the practice of law is typically overseen by either a government or independent regulating body such as a bar association, bar council or law society. Modern lawyers achieve distinct professional identity through specified legal procedures (e.g. successfully passing a qualifying examination), are required by law to have a special qualification (a legal education earning the student a Bachelor of Laws, a Bachelor of Civil Law or a Juris Doctor degree), and are constituted in office by legal forms of appointment (being admitted to the bar). Most Muslim countries have developed similar rules about legal education and the legal profession, but some still allow lawyers with training in traditional Islamic law to practice law before personal status law courts. In China and other developing countries there are not sufficient professionally-trained people to staff the existing judicial systems, and, accordingly, formal standards are more relaxed. Once accredited, a lawyer will often work in a law firm, in a chambers as a sole practitioner, in a government post or in a private corporation as an internal counsel. In addition a lawyer may become a legal researcher who provides on-demand legal research through a library, a commercial service or freelance work. Many people trained in law put their skills to use outside the legal field entirely. Significant to the practice of law in the common law tradition is the legal research to determine the current state of the law. This usually entails exploring case-law reports, legal periodicals and legislation. Law practice also involves drafting documents such as court pleadings, persuasive briefs, contracts, or wills and trusts. Negotiation and dispute resolution skills (including ADR techniques) are also important to legal practice, depending on the field.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Legal section of the course manual is to enable the Head of the Legal Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Legal projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Management
Management in business and organizations means to coordinate the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to ‘manage’ oneself, a prerequisite to attempting to manage others. In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing rewarding employment opportunities for employees. In non-profit management, add the importance of keeping the faith of donors. In most models of management and governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare. In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States Top-Level Managers. The top consists of the board of directors (including non-executive directors and executive directors), president, vice-president, CEOs and other members of the C-level executives. They are responsible for controlling and overseeing the entire organization. They set a tone at the top and develop strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public. The board of directors is typically primarily composed of non-executives which owe a fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the organization, although this varies depending on the type (e.g., public versus private), size and culture of the organization. These directors are theoretically liable for breaches of that duty and typically insured under directors and officers liability insurance. Fortune 500 directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions, and hires, evaluates, and fires the top-level manager (Chief Executive Officer or CEO) and the CEO typically hires other positions. However, board involvement in the hiring of other positions such as the Chief Financial Officer (CFO) has increased. In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were “mentoring skills” and “board engagement”, and 10% of companies never evaluated the CEO. The board may also have certain employees (e.g., internal auditors) report to them or directly hire independent contractors; for example, the board (through the audit committee) typically selects the auditor. Political appointees lose their jobs on the election of a new president/governor/mayor. Management in business and organizations means to coordinate the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to ‘manage’ oneself, a prerequisite to attempting to manage others. In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing rewarding employment opportunities for employees. In non-profit management, add the importance of keeping the faith of donors. In most models of management and governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare. In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States political appointees lose their jobs on the election of a new president/governor/mayor.
Top-Level Managers
The top consists of the board of directors (including non-executive directors and executive directors), president, vice-president, CEOs and other members of the C-level executives. They are responsible for controlling and overseeing the entire organization. They set a tone at the top and develop strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public. The board of directors is typically primarily composed of non-executives which owe a fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the organization, although this varies depending on the type (e.g., public versus private), size and culture of the organization. These directors are theoretically liable for breaches of that duty and typically insured under directors and officers liability insurance. Fortune 500 directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions, and hires, evaluates, and fires the top-level manager (Chief Executive Officer or CEO) and the CEO typically hires other positions. However, board involvement in the hiring of other positions such as the Chief Financial Officer (CFO) has increased. In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were “mentoring skills” and “board engagement”, and 10% of companies never evaluated the CEO. The board may also have certain employees (e.g., internal auditors) report to them or directly hire independent contractors; for example, the board (through the audit committee) typically selects the auditor. Helpful skills of top management vary by the type of organization but typically include a broad understanding competition, world economies, and politics. In addition, the CEO is responsible for executing and determining (within the board’s framework) the broad policies of the organization. Executive management accomplishes the day-to-day details, including: instructions for preparation of department budgets, procedures, schedules; appointment of middle level executives such as department managers; coordination of departments; media and governmental relations; and shareholder communication.
Mid-Level Managers
Consist of general managers, branch managers and department managers. They are accountable to the top management for their department’s function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company’s policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Their functions include:
– Design and implement effective group and inter-group work and information systems.
– Define and monitor group-level performance indicators.
– Diagnose and resolve problems within and among work groups.
– Design and implement reward systems that support cooperative behavior. They also make decision and share ideas with top managers.
First-Level Managers
Consist of supervisors, section leaders, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and up channeling employee problems, etc. First-level managers are role models for employees that provide:
– Supervision
– Motivation
– Career planning
– Performance feedback
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Management section of the course manual is to enable the Head of the Management Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Management projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Marketing
Marketing is the process of communicating the value of a product or service to customers, for selling that product or service. From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that also benefit the organization and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value. There are five competing concepts under which organizations can choose to operate their business: the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing. The set of engagements necessary for successful marketing management includes capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating value, creating long-term growth, and developing marketing strategies and plans.
Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm’s future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally, there are three ways of doing this: the customer-driven approach, the market change identification approach and the product innovation approach. In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs. A formal approach to this customer-focused marketing is known as SIVA[8] (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management. If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will decrease. However, in recent years’ service marketing has widened the domains to be considered, contributing to the 7P’s of marketing in total. The other 3P’s of service marketing are: process, physical environment and people. Some consider there to be a fifth “P”: positioning. Some qualifications or caveats for customer focus exist. They do not invalidate or contradict the principle of customer focus; rather, they simply add extra dimensions of awareness and caution to it.
Organizational orientation
In this sense, a firm’s marketing department is often seen as of prime importance within the functional level of an organization. Information from an organization’s marketing department would be used to guide the actions of other departments within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D (research and development) department to create a prototype of a product or service based on the consumers’ new desires. The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm’s finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers’ mutual behavior. The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior. It shared mechanisms to increase impulse buying and get people “to buy more by playing on the herd instinct.” The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency Identification Tag technology. A “swarm-moves” model was introduced by a Florida Institute of Technology researcher, which is appealing to supermarkets because it can “increase sales without the need to give people discounts.” Other recent studies on the “power of social influence” include an “artificial music market in which some 19,000 people downloaded previously unknown songs” (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on “sales data from department stores and research companies;” a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers such as Amazon.com who are increasingly informing customers about which products are popular with like-minded customers.
Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm’s marketing environment and attain information from suppliers. Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poison distributions, binomial distributions, etc. to interpret their findings and convert data into information. The marketing research process spans a number of stages, including the definition of a problem, development of a research plan, collection and interpretation of data and disseminating information formally in the form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research.
Marketing environment
Staying ahead of the consumer is an important part of a marketer’s job. It is important to understand the “marketing environment” in order to comprehend the consumers concerns, motivations and to adjust the product according to the consumers needs. Marketers use the process of marketing environmental scans, which continually acquires information on events occurring outside the organization to identify trends, opportunities and threats to a business. The six key elements of a marketing scan are the demographic forces, sociocultural forces, economic forces, regulatory forces, competitive forces, and technological forces. Marketers must look at where the threats and opportunities stem from in the world around the consumer to maintain a productive and profitable business. The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Three levels of the environment are: Micro (internal) environment – forces within the company that affect its ability to serve its customers. Meso environment – the industry in which a company operates and the industry’s market(s). Macro (national) environment – larger societal forces that affect the micro-environment.
Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. For instance, Kellogg’s cereals, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods denote two products which are marketed to two distinct groups of persons, both with similar needs, traits, and wants. In another example, Sun Micro systems can use market segmentation to classify its clients according to their promptness to adopt new products. Market segmentation allows for a better allocation of a firm’s finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and incur the related costs) in servicing specific groups of consumers. In this way, the diversified tastes of contemporary Western consumers can be served better. With growing diversity in the tastes of modern consumers, firms are taking note of the benefit of servicing a multiplicity of new markets. Market segmentation can be viewed as a key dynamic in interpreting and executing a logical perspective of Strategic Marketing Planning. The manifestation of this process is considered by many traditional thinkers to include the following; Segmenting, Targeting and Positioning.
Marketing planning
The marketing planning process involves forging a plan for a firm’s marketing activities. A marketing plan can also pertain to a specific product, as well as to an organization’s overall marketing strategy. Generally speaking, an organization’s marketing planning process is derived from its overall business strategy. Thus, when top management are devising the firm’s strategic direction or mission, the intended marketing activities are incorporated into this plan. There are several levels of marketing objectives within an organization. The senior management of a firm would formulate a general business strategy for a firm. However, this general business strategy would be interpreted and implemented in different contexts throughout the firm.
Marketing strategy
The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service. The emphasis is on “an in depth understanding of the market environment, particularly the competitors and customers.” A given firm may offer numerous products or services to a marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models. A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products, goods, or services being marketed. A tactic refers to a shorter term view. Therefore, the mailing of a postcard or sales letter would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used would be considered a strategic change.
Buying behaviour
A marketing firm must ascertain the nature of customers’ buying behavior if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased. Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).
Use of technology
Marketing management can also rely on various technologies within the scope of its marketing efforts. Computer-based information systems can be employed, aiding in better processing and storage of data. Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods. Information technology can aid in enhancing an MKIS’ software and hardware components, and improve a company’s marketing decision-making process. In recent years, the notebook personal computer has gained significant market share among laptops, largely due to its more user-friendly size and portability. Information technology typically progresses at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Moreover, the launch of smart phones into the cell phone market is commonly derived from a demand among consumers for more technologically advanced products. A firm can lose out to competitors should it ignore technological innovations in its industry. Technological advancements can lessen barriers between countries and regions. Using the World Wide Web, firms can quickly dispatch information from one country to another without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex, etc. Recently, there has been a large emphasis on data analytics. Data can be mined from various sources such as online forms, mobile phone applications and more recently, social media.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Marketing section of the course manual is to enable the Head of the Marketing Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Marketing projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Production
Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). It is the act of creating output, a good or service which has value and contributes to the utility of individuals. Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. The satisfaction of needs originates from the use of the commodities which are produced. The need satisfaction increases when the quality-price-ratio of the commodities improves and more satisfaction is achieved at less cost. Improving the quality-price-ratio of commodities is to a producer an essential way to enhance the production performance but this kind of gains distributed to customers cannot be measured with production data. Economic well-being also increases due to the growth of incomes that are gained from the growing and more efficient production.
The most important forms of production are
– market production,
– public production and
– production in households
In order to understand the origin of the economic well-being we must understand these three production processes. All of them have production functions of their own which interact with each other. Market production is the prime source of economic well-being and therefore the “primus motor” of the modern economy. Note that when we later discuss production we refer to market production. When discussing a single unit in the production process, the term “company” is used. In principle there are two main activities in an economy, production and consumption. Similarly there are two kinds of actors, producers and consumers. Well-being is made possible by efficient production and by the interaction between producers and consumers. In the interaction, consumers can be identified in two roles both of which generate well-being. Consumers can be both customers of the producers and suppliers to the producers. The customers’ well-being arises from the commodities they are buying and the suppliers’ well-being is related to the income they receive as compensation for the production inputs they have delivered to the producers.
Stakeholders of production
Stakeholders of production are persons, groups or organizations with an interest in a producing company. Economic well-being originates in efficient production and it is distributed through the interaction between the company’s stakeholders. The stakeholders of companies are economic actors which have an economic interest in a company. Based on the similarities of their interests, stakeholders can be classified into three groups in order to differentiate their interests and mutual relations. The three groups are as follows:
– Customers
– Suppliers
– Producers
The interests of these stakeholders and their relations to companies are described briefly below. Our purpose is to establish a framework for further analysis.
Customers
The customers of a company are typically consumers, other market producers or producers in the public sector. Each of them has their individual production functions. Due to competition, the price-quality-ratios of commodities tend to improve and this brings the benefits of better productivity to customers. Customers get more for less. In households and the public sector this means that more need satisfaction is achieved at less cost. For this reason the productivity of customers can increase over time even though their incomes remain unchanged.
Suppliers
The suppliers of companies are typically producers of materials, energy, capital, and services. They all have their individual production functions. The changes in prices or qualities of supplied commodities have an effect on both actors’ (company and suppliers) production functions. We come to the conclusion that the production functions of the company and its suppliers are in a state of continuous change.
Producer community
The incomes are generated for those participating in production, i.e., the labor force, society and owners. These stakeholders are referred to here as producer communities or, in shorter form, as producers. The producer communities have a common interest in maximizing their incomes. These parties that contribute to production receive increased incomes from the growing and developing production. The well-being gained through commodities stems from the price-quality relations of the commodities. Due to competition and development in the market, the price-quality relations of commodities tend to improve over time. Typically the quality of a commodity goes up and the price goes down over time. This development favorably affects the production functions of customers. Customers get more for less. Consumer customers get more satisfaction at less cost. This type of well-being generation can only partially be calculated from the production data. The situation is presented in this study. The producer community (labor force, society, and owners) earns income as compensation for the inputs they have delivered to the production. When the production grows and becomes more efficient, the income tends to increase. In production this brings about an increased ability to pay salaries, taxes and profits. The growth of production and improved productivity generate additional income for the producing community. Similarly the high income level achieved in the community is a result of the high volume of production and its good performance. This type of well-being generation – as mentioned earlier – can be reliably calculated from the production data.
Main processes of a producing company
A producing company can be divided into sub-processes in different ways; yet, the following five are identified as main processes, each with a logic, objectives, theory and key figures of its own. It is important to examine each of them individually, yet, as a part of the whole, in order to be able to measure and understand them. The main processes of a company are as follows:
– real process
– income distribution process
– production process
– monetary process
– market value process
Production output is created in the real process, gains of production are distributed in the income distribution process and these two processes constitute the production process. The production process and its sub-processes, the real process and income distribution process occur simultaneously, and only the production process is identifiable and measurable by the traditional accounting practices. The real process and income distribution process can be identified and measured by extra calculation, and this is why they need to be analyzed separately in order to understand the logic of production and its performance. Real process generates the production output from input, and it can be described by means of the production function. It refers to a series of events in production in which production inputs of different quality and quantity are combined into products of different quality and quantity. Products can be physical goods, immaterial services and most often combinations of both. The characteristics created into the product by the producer imply surplus value to the consumer, and on the basis of the market price this value is shared by the consumer and the producer in the marketplace. This is the mechanism through which surplus value originates to the consumer and the producer likewise. It is worth noting that surplus values to customers cannot be measured from any production data. Instead the surplus value to a producer can be measured. It can be expressed both in terms of nominal and real values. The real surplus value to the producer is an outcome of the real process, real income, and measured proportionally it means productivity. Income distribution process of the production refers to a series of events in which the unit prices of constant-quality products and inputs alter causing a change in income distribution among those participating in the exchange. The magnitude of the change in income distribution is directly proportionate to the change in prices of the output and inputs and to their quantities. Productivity gains are distributed, for example, to customers as lower product sales prices or to staff as higher income pay. The production process consists of the real process and the income distribution process. A result and a criterion of success of the owner is profitability. The profitability of production is the share of the real process result the owner has been able to keep to himself in the income distribution process. Factors describing the production process are the components of profitability, i.e., returns and costs. They differ from the factors of the real process in that the components of profitability are given at nominal prices whereas in the real process the factors are at periodically fixed prices. Monetary process refers to events related to financing the business. Market value process refers to a series of events in which investors determine the market value of the company in the investment markets.
Production growth and performance
Production growth is often defined as a production increase of an output of a production process. It is usually expressed as a growth percentage depicting growth of the real production output. The real output is the real value of products produced in a production process and when we subtract the real input from the real output we get the real income. The real output and the real income are generated by the real process of production from the real inputs. The real process can be described by means of the production function. The production function is a graphical or mathematical expression showing the relationship between the inputs used in production and the output achieved. Both graphical and mathematical expressions are presented and demonstrated. The production function is a simple description of the mechanism of income generation in production process. It consists of two components. These components are a change in production input and a change in productivity. Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). The methods of combining the inputs of production in the process of making output are often called technology. The production function can be used as a rough measure of relative performance when comparing technologies. In the case of a single production process (described above) the output is defined as an economic value of products and services produced in the process. When we want to examine an entity of many production processes we have to sum up the value-added created in the single processes. This is done in order to avoid the double accounting of intermediate inputs. Value-added is obtained by subtracting the intermediate inputs from the outputs. The most well-known and used measure of value-added is the GDP (Gross Domestic Product is widely used as a measure of the economic growth of nations and industriThe growth of production output does not reveal anything about the performance of the production process. The performance of production measures production’s ability to generate income. Because the income from production is generated in the real process, we call it the real income. Similarly, as the production function is an expression of the real process, we could also call it “income generated by the production function”. The real income generation follows the logic of the production function. Two components can also be distinguished in the income change: the income growth caused by an increase in production input (production volume) and the income growth caused by an increase in productivity. The income growth caused by increased production volume is determined by moving along the production function graph. The income growth corresponding to a shift of the production function is generated by the increase in productivity. The change of real income so signifies a move from the point 1 to the point 2 on the production function (above). When we want to maximize the production performance we have to maximize the income generated by the production function. The production performance can be measured as an average or an absolute income. Expressing performance both in average (avg.) and absolute (abs.) quantities is helpful for understanding the welfare effects of production. For measurement of the average production performance, we use the known productivity ratio:
– Real output / Real input
The absolute income of performance is obtained by subtracting the real input from the real output as follows:
– Real income (abs.) = Real output – Real input
The growth of the real income is the increase of the economic value which can be distributed between the production stakeholders. With the aid of the production model we can perform the average and absolute accounting in one calculation. Maximizing production performance requires using the absolute measure, i.e. the real income and its derivatives as a criterion of production performance. The differences between the absolute and average performance measures can be illustrated by the following graph showing marginal and average productivity. The figure is a traditional expression of average productivity and marginal productivity. The maximum for production performance is achieved at the volume where marginal productivity is zero. The maximum for production performance is the maximum of the real incomes. In this illustrative example the maximum real income is achieved, when the production volume is 7.5 units. The maximum average productivity is reached when the production volume is 3.0 units. It is worth noting that the maximum average productivity is not the same as the maximum of real income. A practical example illustrates the case. When a jobless person obtains a job in market production we may assume it is a low productivity job. As a result average productivity decreases but the real income per capita increases. Furthermore the well-being of the society also grows. This example reveals the difficulty to interpret the total productivity change correctly. The combination of volume increase and total productivity decrease leads in this case to the improved performance because we are on the “diminishing returns” area of the production function. If we are on the part of “increasing returns” on the production function, the combination of production volume increase and total productivity increase leads to improved production performance. Unfortunately we do not know in practice on which part of the production function we are. Therefore a correct interpretation of a performance change is obtained only by measuring the real income change.
Production models
A production model is a numerical description of the production process and is based on the prices and the quantities of inputs and outputs. There are two main approaches to operationalize the concept of production function. We can use mathematical formulae, which are typically used in macroeconomics (in growth accounting) or arithmetical models, which are typically used in microeconomics and management accounting. We do not present the former approach here but refer to the survey “Growth accounting” by Hulten 2009. We use here arithmetical models because they are like the models of management accounting, illustrative and easily understood and applied in practice. Furthermore they are integrated to management accounting, which is a practical advantage. A major advantage of the arithmetical model is its capability to depict production function as a part of production process. Consequently production function can be understood, measured, and examined as a part of production process. There are different production models according to different interests. Here we use a production income model and a production analysis model in order to demonstrate production function as a phenomenon and a measurable quantity.
Production analysis
A model used here is a typical production analysis model by help of which it is possible to calculate the outcome of the real process, income distribution process and production process. The starting point is a profitability calculation using surplus value as a criterion of profitability. The surplus value calculation is the only valid measure for understanding the connection between profitability and productivity or understanding the connection between real process and production process. A valid measurement of total productivity necessitates considering all production inputs, and the surplus value calculation is the only calculation to conform to the requirement. If we omit an input in productivity or income accounting, this means that the omitted input can be used unlimitedly in production without any impact on accounting results.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Production section of the course manual is to enable the Head of the Production Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Production projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Education
Corporate Education refers to a system of professional development activities provided to educate employees. It may consist of formal university or college training or informal training provided by non-collegiate institutions. The simplest form of corporate education may be training programs designed “in-house” for an organization that may wish to train their employees on specific aspects of their job processes or responsibilities. More formal relationships may further exist where corporate training is provided to employees through contracts or relationships with educational institutions who may award credit, either at the institution or through a system of CEUs (Continuing Education Units). Many institutions or trainers offering corporate education will provide certificates or diplomas verifying the attendance of the employee. Some employers use corporate and continuing education as part of a holistic human resources effort to determine the performance of the employee and as part of their review systems. Increasingly organizations appear to be using corporate education and training as an incentive to retain managers and key employees within their organization. This win-win arrangement creates better educated managers for the organization and provides the employees with a more marketable portfolio of skills and, in many cases, recognized qualifications. Most organizations tend to think of corporate education as corporate training. Corporate training programs are often competency based and related to the essential training employees need to operate certain equipment or perform certain tasks in a competent, safe and effective manner. The outcome of a corporate training program is a participant who is either able to operate a piece of equipment or perform a specific task in an effective manner according to pre-determined training criteria. The primary role of corporate training is to ensure an employee has the knowledge and skills to undertake a specific operation to enable an organization can continue to operate. Fundamentally, corporate training is centered on knowledge transfer, with an instructor teaching or demonstrating a particular function and the student learning and demonstrating they can apply what they have learnt to a particular operation. Corporate education, however, adds another dimension and depth to training by involving learners as participants in generating new knowledge that assists an organization to develop and evolve, rather than maintain the status quo. Corporate education focuses on developing the capability of an organization to be able to do things and, in particular, the right things in order to be a sustainable and successful organization. Corporate education involves a facilitator, rather than an instructor or trainer, to engage participants and encourage them to think about the what, how and why of what they are doing and to challenge their current paradigms. Corporate education is centered on introducing learning techniques to stimulate employees to think about what their organization does, where it is heading, potential new opportunities for the organization and new and better ways of doing things. While the role of corporate training is to develop the operational competency of individuals, the purpose of corporate education is to promote the development of capability of both an individual and their organization. Increasingly organizations appear to be using corporate education as an incentive to retain managers and key employees within their organization. This win-win arrangement creates better educated managers and employees for the organization and gives individual employees a more marketable portfolio of skills and, in many cases, recognized qualifications.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Education section of the course manual is to enable the Head of the Education Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Education projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Course Manual – Logistics
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. The logistics of physical items usually involves the integration of information flow, materials handling, production, packaging, inventory, transportation, warehousing, and often security. In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as modern military have a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements. The complexity of logistics can be modelled, analysed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician. One definition of business logistics speaks of “having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer”. Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies. The term “business logistics” has evolved since the 1960s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called “supply chain logisticians”. In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project (e.g., restructuring a warehouse).
Configuration and management
Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network. Distribution resource planning (DRP) is similar to MRP, except that it doesn’t concern activities inside the nodes of the network but planning distribution when moving goods through the links of the network. Traditionally in logistics configuration may be at the level of the warehouse (node) or at level of the distribution system (network). Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method (manual or through robots), rack dimensioning and design, number of racks, number and typology of retrieval systems (e.g. stacker cranes). Some important constraints have to be satisfied: fork and load beams resistance to bending and proper placement of sprinklers. Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers. Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. The first may be referred to as facility location (with the special case of site selection) while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:
Direct store delivery, i.e. zero levels
One level network: central warehouse
Two level network: central and peripheral warehouses
This distinction is more useful for modelling purposes, but it relates also to a tactical decision regarding safety stocks: considering a two level network, if safety inventory is kept only in peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is distributed among central and peripheral warehouses it is called an independent system (from suppliers). Transportation from producer to the second level is called primary transportation, from the second level to consumer is called secondary transportation. Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: changing demand, product or process innovation, opportunities for outsourcing, change of government policy toward trade barriers, innovation in transportation means (both vehicles or thoroughfares), introduction of regulations (notably those regarding pollution) and availability of ICT supporting systems (e.g. ERP or e-commerce). Once a logistic system is configured, management, meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network. Decisions have to be made under a set of constraints: internal, such as using the available infrastructure, or external, such as complying with given product shelf lifes and expiration dates. At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: shared storage, dedicated storage (rack space reserved for specific merchandise) and class based storage (class meaning merchandise organized in different areas according to their access index). Picking efficiency varies greatly depending on the situation. For man to goods situation, a distinction is carried out between high level picking (vertical component significant) and low level picking (vertical component insignificant). A number of tactical decisions regarding picking must be made:
– Routing path: standard alternatives include transversal routing, return routing, midpoint routing and largest gap return routing
– Replenishment method: standard alternatives include equal space supply for each product class and equal time supply for each product class.
– Picking logic: order picking vs batch picking
At the level of the distribution network, tactical decisions involve mainly inventory control and delivery path optimization. Note that the logistician may be required to manage the reverse flow along with the forward flow.
Warehouse management and control
Although there is some overlap in functionality, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center.
Global Supply Chain Development (GSCD) – Internal Analysis
The core objective of the Logistics section of the course manual is to enable the Head of the Logistics Department to implement a process within their own department, with a view towards undertaking a thorough and detailed internal analysis into the history, current position and future outlook for Global Supply Chain Development (GSCD) within their department. In other words, we need to ascertain how much Global Supply Chain Development (GSCD) has been used within Logistics projects, how successful it has been and how things could be improved. Is the department centralized or decentralized in its management structure. In other words, is corporate strategy developed from the top down, or from the bottom up? This will directly impact upon the way in which Global Supply Chain Development (GSCD) is used and interpreted. Remember: Global Supply Chain Development (GSCD) is an approach that actively engages program stakeholders in the evaluation process. When stakeholders collaborate with evaluators, their understanding increases and the utility of the evaluation is often enhanced. So, you will need to select either a large project that has recently been undertaken within your department, or number of smaller projects that have been recently undertaken within your department, identify who the program stakeholders were in each case and then consider how Global Supply Chain Development (GSCD) was used, whether it was successful and how it could be improved.
General Approach to Global Supply Chain Management
Developing Global Supply Chains
The development of global supply chains requires the same information as the development of domestic supply chains but, in addition, also requires additional information on subjects that include: international logistics, laws, customs, culture, ethics, language, politics, governments, and currency. Team approaches should be used for developing global supply chains, include on teams all departments or organizations who will be affected by the supply chain. What, when, and where items are required from the supply chain must be well-defined. Required items must also be completely specified and quantity demand forecasts prepared to guide potential supply chain members. Sources of potential supply chain members include: international expansion of domestic suppliers, current or potential suppliers in the target country or country of international operations, current or potential suppliers in third countries. Supplier qualification evaluations must include ability to conduct international operations and to meet international requirements in addition to the usual domestic considerations. Think “global” and act “local” as required. The imperative of adopting a “glocality” strategy requires balancing standardization of souring, processes and tools with the needs for customization.
Implementing Global Supply Chains
After identification of supply chain partners, an implementation team should be identified and used to plan and conduct the actual implementation of supply chain operations. Processes and procedures need to be documented in detail and tested or piloted before full implementation. Training for all participants in new or revised procedures and processes must not be overlooked. Metrics for administration and evaluation of the operation of the supply chain must be identified and agreed upon by the members of the supply chain. A plan and schedule for implementation and subsequent administration and evaluation of supply chain activities and operations must be developed by the implementation team.
Maintaining Global Supply Chains
Regular evaluation using agreed-upon metrics followed by corrective action as necessary will help assure that expected benefits will be achieved. A program of continuous improvement review will assure that the supply chain remains effective and efficient in achieving its goals.
Step by Step Approach for Developing Global Supply Chains, A “best practice” Framework
1. Secure a top-level organizational mandate which prioritizes and supports SCM
2. Form a cross-functional global supply chain development team: Include all affected parties, internal and external; The team composition may change as development and implementation proceeds.
3. Identify needs and opportunities for supply chain globalization: Determine the requirements your supply chain must meet; Commodities, materials, services required; Dollar value of materials and services procured or to be procured; Importance of commodities, materials, and services to achievement of company strategic objectives; Performance metrics for qualification and evaluation of suppliers; A center of excellence comparison to industry best practices; Determine the current status of your supply chain “as is”; Existing suppliers of materials and services; Customers (who, where, what products) o Commodity markets (major markets procured from); Current performance, problem areas; Competitiveness (cost, quality, delivery, responsiveness); “Fit” of your current supply chain with your operational requirements; When determining supply chain requirements and current status, use a framework such as the iSource Global Enabled Supply Chain Map (iSource Business, August-September, 2002). The main components of this particular framework include the following items: Order/Demand capture (What materials/services are needed?); Supply chain planning; Supply chain event management; Sourcing (Where can we get what is needed?); Trading exchanges; Commodity team and supplier collaboration; Spend analytics and supply strategy; Content management; Auctions; Procurement (How to purchase needed requirements); Supplier relationship management; Content management; Marketplaces; Fulfillment (Order/delivery status); Order management; Call center operations; Sales and marketing support; Warehousing, inventory management and deployment; Logistics (What/when/where/how much/cycle time management); Inventory management in motion or at rest; Physical management of movement of goods and resources; Transportation; Payment (How/when to pay); Electronic funds transfer; Procurement cards; Customer Relationship Management; Content management; Channel management and customer analytics; Reverse logistics/material and/or merchandise returns; Partnership/alliance considerations All of these are operational dimensions of supply chains which must be identified, considered, and included in any determination of requirements and assessment of current status of supply chains.
4. Determine commodity/service priorities for globalization consideration based on needs and opportunities.
5. Identify potential markets and suppliers and compare to “as is” markets, suppliers, and supply chain arrangements, operations, and results.
6. Evaluate/qualify markets and suppliers, identify supplier pool (determine best ones based on likely total cost of ownership (TCO), and best potential to meet or exceed expectations and requirements).
7. Determine selection process for suppliers, e.g. request for proposal (RFP), bid invitation, point system, past performance, references, reverse auction, negotiation, etc.
8. Select suppliers or confirm current suppliers; formalize agreements with suppliers.
9. Implement agreements with key metrics established.
10. Monitor, evaluate, review, and revise as needed.
11. Capture key cost savings, synergies and cycle time improvements.
12. Set up a continuous mechanism to communicate benefits to appropriate stakeholders.
Strategies and Tactics
Some strategies that are useful in building global supply chains include: optimize the size (determine the best number of suppliers to optimize cost and performance) of the supply base; search globally for potential suppliers; use strategic supplier alliances; conduct total cost of ownership analysis on all significant buys; use suppliers that practice total quality management; use integrated supply management as a means of increasing value while reducing cost and complexity of the supply chain; conduct reverse auctions to determine price/cost reduction potential; integrate local business development and local content activities into your strategy. Tactics that are useful in building global supply chains include: synchronize information and material flows, i.e. match the information with the material flows to improve ability to monitor supply chain activity and performance; rationalize the supply base (reduce to the optimum number of suppliers); provide suppliers with accurate forecasts of demand so they can provide the required supply at the times required and at the lowest total cost; determine performance objectives for supply chains and develop metrics and measurements to determine how well they are being met; minimize inventory investment by using supplier managed inventories or just-in-time with electronic linkages to communicate and release.
Project Studies
Project Study (Part 1) – Customer Service
Select a major project that has recently been undertaken within your Customer Service department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Customer Service department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 2) – E-Business
Select a major project that has recently been undertaken within your E-Business department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your E-Business department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 3) – Finance
Select a major project that has recently been undertaken within your Finance department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Finance department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 4) – Globalization
Select a major project that has recently been undertaken within your Globalization department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Globalization department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 5) – Human Resources
Select a major project that has recently been undertaken within your Human Resources department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Human Resources department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 6) – Information Technology
Select a major project that has recently been undertaken within your Information Technology department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Information Technology department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 7) – Legal
Select a major project that has recently been undertaken within your Legal department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Legal department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 8) – Management
Select a major project that has recently been undertaken within your Management department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Management department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 9) – Marketing
Select a major project that has recently been undertaken within your Marketing department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Marketing department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 10) – Production
Select a major project that has recently been undertaken within your Production department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Production department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 11) – Education
Select a major project that has recently been undertaken within your Education department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Education department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Project Study (Part 12) – Logistics
Select a major project that has recently been undertaken within your Logistics department, preferably one that has been completed successfully. Then undertake the following tasks:
1. Provide details of the original MOST Analysis for this project, that is to say, what was the project mission, what were the objectives that needed to be achieved, what were the strategies used to implement each objective and what were the individual tasks performed.
2. List all of the Key Stakeholders for this project.
3. How was the Global Supply Chain Development (GSCD) process used to: plan; develop, implement, manage and review the project’s strategies and tasks?
4. Undertake a SWOT Analysis in relation to Global Supply Chain Development (GSCD) with this project: by listing the internal strengths and the resulting external opportunities, together with the internal weaknesses and the resulting external threats.
5. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process was used successfully with this project.
6. Describe in your own words how you feel the Global Supply Chain Development (GSCD) process could be improved for future projects.
Select a new major project that is about to be undertaken within your Logistics department.
7. List all of the Key Stakeholders for this project.
8. Describe in your own words the Global Supply Chain Development (GSCD) process that will be used for this project.
9. Draw a flow chart illustrating how and when Global Supply Chain Development (GSCD) will be used with this project, during: planning; development; implementation; management and review.
10. List any questions that you have, that might help you to improve Global Supply Chain Development (GSCD) process that will be used.
Program Benefits
Management
- Performance Improvement
- Productivity Improvement
- Stakeholder Management
- Globalization Process
- Decentralized Approach
- International Engagement
- Strategic Alliances
- International Distribution
- Lean Management
- Project Management
Production
- Process Improvement
- Improved Options
- Logistics Management
- Procurement Excellence
- Supply-Chain Globalization
- Outsourcing Optimization
- Insourcing Optimization
- Lean Process
- Productivity Improvement
- Distribution Enhancement
Globalization
- Business Partnering
- Global Process
- Mergers Acquisitions
- Cost Reduction
- Product Improvement
- Quality Management
- Process Decentralization
- Supply-Chain Globalization
- Return On Investment
- Competitive Improvement
Client Telephone Conference (CTC)
If you have any questions or if you would like to arrange a Client Telephone Conference (CTC) to discuss this particular Unique Consulting Service Proposition (UCSP) in more detail, please CLICK HERE.