Global Supply Chain Strategies

According to Simchi-Levi et al. (2003), global supply chains can have many forms and shapes and they fall into one of the following types  

Products Include raw materials, work-in-progress, sub-assemblies, finished goods, etc. 

Funds Include invoices, payments, credits, consignments, etc. 

Information Include orders, deliveries, marketing promotions, plant capacities, inventory, etc. 

Fawcett et al. (2007) state that companies often fail to recognize the differences between domestic and global operations in designing their 

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Christopher M., Peck H., TowiU D., 2006, A Taxonomy for Selecting Global Supply Chain Strategies, The International Journal of Logistics Management, 17(2), pp. 277-287. 

While the primary impetus for global supply chains was the penetration of new markets, the second thrust to be global was driven by the lower cost of labor. For laggards, it was a pure labor arbitrage strategy. 

This chapter explains how to use author s website to perform regular (e.g., annually) assessments in light of DDSC, and also provides practical examples of opportunities identified after applying the proposed methodology in a global CPG company. A framework is also presented to support the development of annual supply chain strategy to support company s progress towards DDSC concepts. 

Bowman, R. (2001, October). Fast deployment—quick return help sell IT in a slow economy. Global Logistics and Supply Chain Strategies. 

The Aberdeen Group (Enslow, 2005) recommended the following strategic and tactical logistics strategies to reduce cost and increase responsiveness of the global supply chain. 

Braithwaite A., 2003, The Supply Chain Risks of Global Sourcing, Supply Chain Strategy and Trends - Globalization, UK LCP Consulting. 

Kotzab, H., 2000. Managing the grocery industry in an efficient consumer response manner. In Global purchasing supply chain strategies. December 2000. 

Two thirds of the 300 businesses surveyed for the report-which include makers of mechanical equipment, plastics manufacturers, food manufacturers and suppliers to the automotive industry - plan to re-evaluate their supply-chain strategies as a result of the global recession. 

The tendency towards internationalisation three strategies for improving the transition to global supply chains. 

Phase I starts with a clear definition of the firm s competitive strategy as the set of customer needs that the supply chain aims to satisfy. The supply chain strategy then specifies what capabilities the supply chain netwoik must have to support the competitive strategy (see Chapter 2). Next, managers must forecast the likely evolution of global competition and whether competitors... 

Explain different strategies that may be used to mitigate risk in global supply chains. 

It is thus critical for global supply chains to be aware of the relevant risk factors and build in suitable mitigation strategies. Table 6-3 contains a categorization of supply chain risks and their drivers that must be considered during network design. 

Appropriate flexibility is an effective approach for a global supply chain to deal with a variety of risks and uncertainties. Whereas some flexibility is valuable, too much flexibihty may not be worth the cost. Strategies such as chaining and containment should be used to maximize the benefit from flexibility while keeping costs low. 

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