...Part E 41 (2005) 531–550 www.elsevier.com/locate/tre Global supply chain design: A literature review and critique Mary J. Meixell a a,* , Vidyaranya B. Gargeya b,1 School of Management, Enterprise Hall, MSN 5F4, George Mason University, Fairfax, VA 22030-4444, United States b Information Systems and Operations Management Department, 479, Bryan Building, The University of North Carolina at Greensboro, Greensboro, NC 27402, United States Abstract In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is based on ongoing and emerging issues in global supply chain management and includes review dimensions for (1) decisions addressed in the model, (2) performance metrics, (3) the degree to which the model supports integrated decision processes, and (4) globalization considerations. We conclude that although most models resolve a difficult feature associated with globalization, few models address the practical global supply chain design problem in its entirety. We close the paper with recommendations for future research in global supply chain modeling that is both forward-looking and practically oriented. Ó 2005 Elsevier Ltd. All rights reserved. Keywords: Supply chain design; Globalization; Outsourcing; Supply chain integration; International sourcing 1. Introduction The...
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...According to the text, any activity in the value chain can be outsourced except for strategy and management. True False According to the text, the process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain is called operations management. True False Supply chains are an integral part of global quality and cost management initiatives, since a typical company's supply chain costs can represent over 80 percent of assets. True False Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory. True False According to the text, shorter and less predictable product life cycles have placed reduced emphasis on supply chains and their performance. True False Effective supply chain management can enhance a company's ability to manage regulatory, social, and other environmental pressures, both within a nation and globally. True False 2. 3. 4. 5. 6. 7. 8. 9. 10. An important consideration in design is the extent to which the international company's products and services will be standardized across nations or regions. True False 11. The "over-the-wall" approach to product design involves an initial step in which the designers prepare the product's design, followed by sending the newly created design to the company's...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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...decision to enter a highly competitive video game market presented huge demand and supply challenges to Microsoft, and from a design and manufacturing perspective, their motivations and decision to evolve their supply chain for a global launch of Xbox 360 was more beneficial than risky, even though there are a few caveats. One of the key strategic decisions that supported their evolving supply chain was establishing a market presence with the original Xbox console, and then to introduce the Xbox 360 a year before Sony would release their next generation console. To achieve this, Microsoft, which originally was not able to reduce costs on their processing and graphics chips, and overall manufacturing costs with product design, changed its strategy and contracted with chip companies to produce the Xbox 360 chips, but owned the designs of these chips, ultimately reducing costs and providing Microsoft an increased leverage with the suppliers. Not only would this give Microsoft an increased control, but also helped Microsoft achieve increased flexibility in its global supply chain, thereby allowing it to ship the products to global locations for an early launch, ultimately beating Sony's launch of their upcoming product. The second major advantage in Microsoft's evolving supply chain strategy was the synergistic confluence in bringing their manufacturers Flextronics and Wistron into optimizing their design production for the Xbox 360. The distribution of their hardware across industrial...
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...Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing the time required to sense or shape changes to end-customer demand. Begin the design of your...
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...Research Publication Date: 12 November 2010 ID Number: G00208603 Case Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing...
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...Introduction to Supply Chain Management * Supply Chain Management: A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. * Takes into consideration every facility that has an impact on cost and plays a role in making the product conform to customer requirements * Be efficient and cost-effective across the entire system * Supply chain strategies cannot be determined in isolation. They are directly affected by another chain that most organizations have, the development chain – includes the set of activities with new product introduction * It is challenging to design and operate a supply chain so that total system-wide costs are minimized, and system-wide service levels are maintained. * Uncertainty and risk are inherent in every supply chain * The development and supply chains intersect at the production point (HP was one of the first firms to recognize this intersection) * What makes finding the best system-wide, or globally optimal, integrated solution so difficult? * The supply chain is a complex network (Ex: National Semiconductor) * Different facilities in the supply chain frequently have different, conflicting objectives. * The supply chain is a dynamic system that...
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...Table of contents Abstract-----------------------------------------------------------------------------3 1 significant feature---------------------------------------------------------------3 1.1 Lego design-------------------------------------------------------------------3 1.2 Manufacturing operation----------------------------------------------------3 1.3 Reasons for company’s success--------------------------------------------3 2 current business and operation strategy--------------------------------------3 3 Strengths and weakness-------------------------------------------------------3 4 Order winners and qualifiers-------------------------------------------------3 5 Environment analysis---------------------------------------------------------3 6.1 external analysis--------------------------------------------------------------3 6.2 Forces analysis---------------------------------------------------------------3 6 main expectations-------------------------------------------------------------3 7.3 main expectation--------------------------------------------------------------3 7.4 improvement from the relationship with Flextronics---------------------3 7 key challenges-----------------------------------------------------------------3 8 key issues-----------------------------------------------------------------------3 Reference---------------------------------------------------------------------------3 ...
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...INTRODUCTION At the height of Henry Ford’s empire, he owned every aspect of the supply chain, from the steel mills, the rubber plantation and the factory. But with diversification of markets and increasing globalisation, companies do not have this luxury. Supply chains have grown longer and require more time and money to delivr, companies need to focus on core competencies while still maintain a control over the supply chain. The polarisation of the global market is important too and is currently characterized by expanding product variety, short life-cycle, shifting customer demand and continuous advancement in technology. HISTORY AND PRESENT Twenty years ago, experts were predicting the death of companies that did not relocate to countries with smaller overheads and costs. The fanatical levels of competition between companies reduced the prospect of success or failure to one absolute: cost. This led to an exodus of companies travelling to production facilities on the other side of the globe. Thus supply chains became long and unwieldy, reducing the amount of control and oversight over it. The influx of wealth in the LEDCs allowed the governments to improve standards , according to the International Labour Organisation, wages in Asia between 2000 and 2008 rose by 7.1-7.8%/ year; this reduced the cost advantage that brought the companies flocking to their doors. Oil and energy prices and consequently transportation costs have sky rocketed, which reduces the cost advantage...
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...the Indian market. Major foreign players include Toyota, Hyundai, General Motors and Volkswagen Group. Major automotive hubs in India are Chennai, NCR and Pune. As the operations of automotive industry are increasing rapidly in terms of volume and complexity, companies in India need to follow global standards and best practices for achieving optimization of their supply chain. One of the practices, which are followed by leading companies, is fourth party logistics (4PL) company, or a lead logistics provider (LLP) Need for 4PL 1) Concept Definition: Lead Logistics provider or 4PL 4PL is term introduced by Accenture in 1996.It describes 4PL as an "integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design supply chain solutions". 4PL i.e fourth party logistics provider is a company which re-designs a manufacturer’s or retailer’s supply chain; implements the solution and then manages the logistics companies required as part of the overall solution. 4PL provider is also referred as Lead Logistics provider(LLP) which manages a range of other 3PLs on behalf of a manufacturer or retailer as part of an overall supply chain solution[1]. 4PL concept of a (Source: Allyin International 'www.allynintl.com') 4 So in short, 4PL is an...
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...MKT 421 Week 5 Map the Supply Chain Paper Name University Map the Supply Chain – Introduction Supply chain logistics is a fundamental component of the global economic system. Goods can change hands from a variety of different global companies, which some form of value being added at each stage. In the context of marketing, the following paper will map the supply chain of the solar panel industry. This is a growing industry that has seen a massive amount of growth over the last 10 years. Each major piece of the supply chain will be outlined in detail, which includes the manufacturer, distributer, and retailer. Manufacturer Solar panels are an alternative energy source that is used for a variety of applications in commercial and residential settings. The majority of panels are manufactured overseas where companies can take advantage of lower labor costs. Under the direction of U.S. based firms, the typical supply chain of a solar panel company may include the following roles. * Designs the technical layout and schematics of the solar panel. * Tests safety of technology before wide release. * Sources raw materials, such as aluminum and silicon diodes. * Creates branding to backup the quality of the product. * Improves product designs based on customer feedback. * Ensures panels meet environmental compliance regulations. Some of the largest solar panel manufacturers include First Solar, Sun Power, and LDK Solar. These brands compete with each...
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...What is Supply Chain Management (SCM)? • Boundary Spanning Nature of SCM Introduction to Supply Chain Management • The Rise of SCM • Characteristics of a Competitive Supply Chain • Trends in SCM • Careers in SCM and Professional Organizations • Review Copyright 2011 John Wiley & Sons, Inc. 1-1 Copyright 2011 John Wiley & Sons, Inc. 1-2 What is Supply Chain Management? Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain Supply Chain Stages A typical supply chain may involve many different trading partners, called stages Stages may include: – Suppliers – Producers – Wholesalers/Distributors – Retailers – Customers Copyright 2011 John Wiley & Sons, Inc. 1-3 Copyright 2011 John Wiley & Sons, Inc. 1-4 SCM Activities SCM activities include: • Coordination – coordinate the movement of goods, services, and funds through the supply chain Managing Flows Through the Supply Chain Managing Flows of Products, Information, and Funds: • Flow of Products – from the beginning to the final customer – Reverse Logistics • Information Sharing – share forecasts, point-of-sale data, planned promotional campaigns, and inventory levels • Collaboration – jointly plan, operate, and execute business decisions as one entity Copyright 2011 John Wiley & Sons, Inc. 1-5 Copyright 2011 John Wiley & Sons, Inc. 1-6 1 10/15/2012 Managing Flows Through the Supply Chain...
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...canvas 9 2.2 Analysis of H&M 10 2.2.1 Vision, mission and objectives 10 2.2.2 Internal analysis 10 2.2.3 Business model canvas 11 2.2.4 Value proposition canvas 12 2.3 Summary of findings 12 4. Comparison of business models between Zara and H&M 12 4.1 Comparison of business models 13 4.2 Comparison of value proposition canvas 14 4.2 Summary of research insights 14 5. Development of a new entrant 15 5.1 Strategic model 15 5.2 Business model canvas 16 6. Reflection on strategic insights 16 7. Conclusion 17 References 18 1. Introduction Fast fashion is a sub sector of the fashion industry that boasts fast response to consumer demand and efficient distribution of materials and products in the global landscape (Hines and Bruce 2007). Hines and Bruce (2007) also imply that fast fashion could quickly identify and capture business opportunities and transform them into products in a timely manner. As fast fashion retailers need to deliver trendy apparels to end customers, low cost production and efficient distribution become primary trends of fast fashion industry as well (Barnes and Lea-Greenwood, 2006). Therefore, fast fashion industry is characterized by low cost and leaner production, quick response to market demand, efficient distribution and flexible transportation. Nowadays, industries are significantly influenced by forces or trends like globalization, digitalization, deregulation, liberalization of...
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...1 Type: Lecture Introduction Nobody will dispute the fact that operations are becoming increasingly international or even global in nature. Less clear, though, is what this actually means for operations. Drivers of globalization include increased competitiveness through offshore manufacturing and increased sales by expanding into new markets, but the associated opportunities and challenges are totally different and highly industry-dependent. Clearly, the issues facing a hi-tech firm are different than those facing a global consulting firm, software is a different ballgame than textile, etc. "Global operations" can refer to, among others, global sourcing, to having manufacturing or service or R&D facilities world-wide, or to supplying global markets, each of which have very different ramifications: Global sourcing Global manufacturing Global distribution . dealing with foreign . facility location . local content regulations suppliers . coordinating networks . managing global . managing international of plants distribution logistics . coordinating networks . managing risk . managing risk of R&D facilities . operations in other countries Page intentionally left blank. Class: 2a Type: Lecture Supply Chain Management & Service The goal in this part is to introduce the two main sections of the course, international manufacturing...
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...with Supply in Mind please answer the following questions: 1. What are the three actions Supply Chain Managers can take to ensure that supply and demand are aligned when building the demand plan? A. Aligning of goals and incentives across functions and evaluated based on their effect on profitability and not total costs: Pricing- manufactures can use buy-back, revenue sharing; altering sales force; incentive from sell-in to sell-through (ie. to the end customer (sell through) and not to the retailer (sell in). B. Improving information accuracy: (i) sharing point of sales data; (ii) implementation and designing single stage control of replenishment (eliminates multiple forecasts). C. Improving Operation performance - reducing lead time, reducing inventory, rationing base on past sales and sharing information to limit Gaming; eliminate promotions and charge an Every Day Low Price - removes forward buying by retailers and results in orders that match customer demand. 2. How can a Supply Chain Manager actively be engaged with sales and marketing in shaping demand? two scenarios: If there is an excess of materials and components, under-utilized plants, or a surplus of finished good inventories, supply chain can work with sales and marketing to develop programs aimed at correcting these excess supply situations which might result in significant inventory obsolescence and write-offs. If there are shortages of any type of supply, then...
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