Download to read offline
Session 7_Lecture PPT NMMMIIMMMSSSSS Mumbai
- 1. Logistics Management– Session7 Managing global pipelines Chapter 9 from the Recommended Textbook Logistics and Supply chain Management by Martin Christopher Presented by Dr Anandhi Muralidharan 4th August, 2025
- 2. Session Topic (Includingsub topics) Learning outcomes Pedagogical tools Textbook chapters & readings 1 Logistics, the supply chain and competitive strategy To understand the mission of logistics management, supply chain and competitive performance, changing competitive environment, elements of Logistics, role of logistics management and concept of value chain Lecture sessions with caselets, examples and simulation exercises Chapter 1 2 Role of logistics in delivering value to customer, Going to market-Distribution channels and omni channel revolution To know how logistics interfaces with marketing, understand customer service objectives, delivering customer value, and understand Omni channel revolution Lecture sessions with caselets, examples and simulation exercises Chapter 2 & 3 3 Transportation & Logistics cost and performance measurement To familiarise with modes of transport, take transport decisions, face challenges and potential solutions, To understand what service means to various internal stakeholders, understanding cost to serve, total delivered cost and impact on the bottom-line Lecture sessions with caselets, examples and simulation exercises Chapter 4 4 Matching demand and supply and Creating the responsive supply chain To calculate volume/Variability Matrix, Managing supply/demand, what is agile supply chain, and route map to responsiveness Lecture sessions with caselets, examples and simulation exercises Chapter 5 & 6 5 Leadtime management and Sychronous supply chains To conceptualize lead-time, Logistics pipeline management, reducing logistics lead-time, To analyse extended enterprise and Virtual supply chain, role of information in virtual SC, quick response and logistics system dynamics and ERP systems Lecture sessions with caselets, examples and simulation exercises Chapter 7 & 8 6 Complexity and supply chains To understand the sources of supply chain complexity, cost of complexity, product design and supply chain complexity and how to master the complexity Lecture sessions with caselets, examples and simulation exercises Chapter 9 7 Managing global pipelines To get exposed to the trend towards globalization of supply chains, financing global supply chains, organizing global supply chains and future of global sourcing Lecture sessions with caselets, examples and simulation exercises Chapter 10 8 Managing risk in supply chain & Overcoming the barriers to supply chain integration To formulate triple Bottomline, understanding SC risk profile, Creating the logistics vision, developing a logistics organization Lecture sessions with caselets, examples and simulation exercises Chapter 12 & 14 9 Network competition & Sustainable supply chain Managing supply chain as a network, from 3PL to 4PL, Sustainable and green supply chains, compliance environment and risk mitigation Lecture sessions with caselets, examples and simulation exercises Chapter 13 & 15 10 Service logistics supply chain, SC future To identify what is service and its importance, servitisation of logistics and implications, service supply chain processes, managing service supply chains and emerging megatrends Lecture sessions with caselets, examples and simulation exercises Chapter 11 & 16
- 3. Session agenda • Globalisationin supply chain • Visibility in the global pipeline • Financing global supply chains • Organizing for global logistics • Future of global sourcing
- 4. Globalisation in supplychain • The term “globalization” refers to the free movement of goods, services, and people across the world. • In regards to supply chain management, globalization refers to the process in which a business operates on an international scale.
- 5. Its all aboutleverage • Consider how to turn an aircraft. Aircrafts are steered through the use of a system of ailerons on the wings and the rudder at the tail of the aircraft. • In comparison to the aircraft, the ailerons and the rudder are very small; however, leverage allows them to turn the large aircraft. • In other words, putting the right combination of a little leverage on the right places allows incredible maneuvering.
- 6. Globalization of globalbrands Apple-global suppliers and manufacture rs Zara-lean and agile, twice a week, store delivery Ikea-global sourcing, process automation and e commerce Kia motors- core and high risk suppliers to make priority improvements Nike- outsourcing and diversification- 100% McDonald’s- partnership with contracted supplier Coca cola- global supply chain council- to share insights and best practices Tesla-global procurement, logistics and automation
- 7. Areas to beconsidered while moving from domestic to International supply chain 1. Substantial geographical distances 2. Forecasting problems/difficulties in foreign markets 3. Fluctuations in exchange rates for different currencies 4. Demand for great variety of products 5. Inadequate infrastructures such as • labor skills, • availability of supply • Supplier quality • Lack of local process equipment and technologies • Inadequate transportation facilities and • Inadequate telecommunication facilities
- 8. Managing global supplychain by creating visibility- DHL international supply chain Global sourcing Global distribution
- 9. Global sourcing • Globalsourcing refers to buying the raw materials or components that go into a company’s products from around the world, not just from the headquarters’ country. • For example, Starbucks buys its coffee from locations like Colombia and Guatemala. • The advantages of global sourcing are quality and lower cost. • https://www.youtube.com/watch?v=ElYNhGbOTOQ
- 10. Global distribution-Manufacturing andDistributing the COVID-19 Vaccine- Pfizer way • Pfizer consistently and diligently monitors the supply of the medicines. • They operate one of the most sophisticated supply chain systems in the industry, with over 40 Pfizer-owned sites and over 200 suppliers globally, which provides capacity and redundancy as needed. • Their manufacturing and supply chain professionals have been working non-stop to ensure that the global supply of Pfizer medicines continue to be available to patients. • They have implemented an unprecedented and comprehensive preparedness plan to control their site operations and continued to provide timely updates if there is any new information to be shared. • https://www.pfizer.com/science/coronavirus/vaccine/manufacturing-and- distribution
- 11. Positioning • Selection ofstrategic and structural approaches to guide global operations Integration • Establishment of what to do and how to do it creatively Agility • Achievement and retention of global competitiveness and global customer success Measurement • Internal and external monitoring of global operations Competencies needed for efficient Global SCM
- 12. Global supply chainrisks Economic risks- currency fluctuations, instability in demand and prices, changing labor costs, inflationary pressures etc Environmental risks- internal like fire, chemical leaks etc and external like natural disasters to companies Political risks-Terrorism, government policy changes, corruption, energy crises etc Supplier risk-inaccurate and delayed shipments, erratic communications, unresponsive and inflexible operations etc
- 13. Making global SCrisks under uncertainty Combine strategic planning and financial planning during global network design. Use multiple metrics to evaluate global supply chain networks. Use financial analysis as an input to decision making, not as the decision- making process. Use estimates along with sensitivity analysis.
- 14. Financing global supplychains- SCF • It is a solution designed to benefit both suppliers and buyers; suppliers get paid early and buyers can extend their payment terms. • This solution allows businesses which import goods to unlock working capital as well as reduce the risk associated with buying goods in bulk and/or transporting them globally. • SCF is generally defined as ‘an arrangement whereby a buyer agrees to approve his suppliers’ invoices for financing by a bank or other financier’.
- 15.
- 16. Organizing for globallogistics 1. Map the process • Terms of trade • Terms of payment • Cargo insurance 2. Select transportation mode 3. Validate systems 4. Executing strategy and moving the goods
- 17. Future of globalsupply chains • Future supply chains will need to be much more dynamic—and be able to • predict, • prepare, and • respond to rapidly evolving demand and a continually changing product and channel mix. • In short, supply chains will need to become agile
- 18. Future of globalsourcing- mega trends Sustainable products Smart products Health products Lifestyle products
- 19. Outsourcing • Outsourcing isabout moving internal operations to a third-party. • To move transactional activities to the experts in order to give an organization the capacity to focus on its expertise. • Almost every company has 'spun off' its functions and sort greater specialization on the areas which earns the most profit. Offshoring • Unlike outsourcing, offshoring is primarily a geographic activity. • In the West, goods are expensive because the staff required to produce and distribute them are costly. • In the developing world, by contrast, vast inexpensive labor pools provide an easy bedrock for a low-cost economy.
- 20. Apple’s Supply ChainStrategy • Apple’s supply chain is a complex and intricate system responsible for the manufacturing and distribution of its products. It is a global network of suppliers, manufacturers, and distributors who collaborate to ensure that Apple products are delivered to consumers quickly and effectively. • The beginning of Apple’s supply chain is the procurement of basic materials. Apple works with global suppliers to acquire the necessary components to manufacture its products. These components are then transported to Apple’s manufacturing facilities, where they are used to assemble finalized products. • Once products have been assembled, they are sent to Apple’s distribution centers. The products are packaged and dispatched from this location to Apple’s retail stores, its online store, and other retailers. Apple collaborates with third-party logistics providers to ensure timely and efficient delivery of products to customers. • Apple also employs a rigorous quality assurance procedure to ensure that all of its products satisfy the company’s stringent requirements. This includes thorough inspections of the manufacturing process and testing of components and finished products.
- 21. Apple’s Global SupplyChain Management • Apple is a successful business due to its global supply chain, which allows it to quickly and efficiently source parts and materials from all over the globe and deliver them to its factories. Apple has many distinct partners, including suppliers, manufacturers, and logistics companies, and maintains constant communication with them to ensure they can uphold the company’s standards for dependability and quality. Additionally, Apple collaborates with its suppliers to make sure they can adhere to its manufacturing deadlines and schedules. • Apple works with logistics partners to manage its supply chain, organizing parts and supplies, and supporting inventory management efforts. Apple uses SCM and ERP systems to track and manage its inventory levels. • Finally, Apple has implemented a variety of various strategies to guarantee the effectiveness and efficiency of its global supply chain. Among these tactics are just-in- time manufacturing, which aids Apple in lowering inventory costs, and lean manufacturing methods, which aid Apple in cutting waste and boosting productivity. • The global supply chain for Apple is very successful and economical. Apple is able to obtain parts and materials from all over the world and deliver them to its factories quickly and affordably by utilizing its partnerships, technologies, and business strategies.
- 22. The Prospects forApple’s Supply Strategy • Apple Inc. is one of the most successful tech companies in the world, and its supply chain management is a big reason why. As the company grows, its supply chain must change to keep up with the business’s needs. In the future, Apple’s supply chain management will have to focus on sustainability, efficiency, and customer service. • Sustainability • Apple is embracing sustainability in the tech sector. The firm uses renewable energy and reduces packaging waste. Apple keeps investing in renewable energy, lowering emissions, and using sustainable materials in its goods. • Efficiency • Apple’s supply chain strategy prioritizes efficiency. The supply chain must meet consumer demand at low cost. Apple engages automation and AI to streamline its processes. The firm saved money and improved service. • Customer Service • Apple thrives on customer service. The firm delivers orders quickly and accurately. Apple uses chatbots and automated customer support systems to do this. This improves customer care and lowers costs.
- 23. BMW’s Supply ChainOverview • BMW, Bayerische Motoren Werke AG, is a renowned German luxury automobile manufacturer with a reputation for producing high- performance vehicles focusing on innovation and quality. One of the critical factors behind BMW’s success lies in its well-optimized and efficient supply chain. • BMW’s supply chain journey dates back to its inception in 1916. Over the years, the company has continuously evolved its supply chain practices to adapt to changing market dynamics and customer demands. In the early days, BMW’s supply chain was relatively simple, serving mainly local markets. • However, with its global expansion, the complexity of its supply chain increased significantly.
- 24. Key Components ofBMW’s Supply Chain • The Role of Technology and Innovation in BMW’s Supply Chain • Advanced analytics, augmented reality, artificial intelligence (AI), and the Internet of Things (IoT) • BMW has implemented various digital tools to streamline communication and collaboration with suppliers
- 25. Supply Chain Planningat BMW • Demand forecasting and planning help the company effectively align production schedules and manage inventory levels. • BMW’s just-in-time (JIT) production approach ensures that materials arrive at the production line precisely when needed, reducing storage costs and enhancing flexibility. • Supplier relationship management is also a crucial aspect of BMW’s planning efforts.
- 26. Challenges and Risksin BMW’s Supply Chain • Supply chain resilience and flexibility • Supplier dependencies • Cost efficiency and sustainability • Through meticulous planning, proactive risk management, and continuous improvement efforts, BMW endeavors to navigate these challenges and uphold its reputation for operational excellence.
- 27. Future Trends and Innovationsin BMW’s Supply Chain • Digitalization and automation are set to play a pivotal role in optimizing BMW’s supply chain operations. • Integrating artificial intelligence, machine learning, and data analytics will enable predictive maintenance, real-time monitoring, and intelligent decision-making. • Autonomous vehicles will bring about a paradigm shift in logistics, with self-driving trucks and drones transforming the transportation of parts and finished vehicles. • Blockchain technology will enhance transparency and traceability across the supply chain, ensuring ethical sourcing and reducing counterfeiting risks.
- 28. To summarise…… • Globalisationin supply chain • Visibility in the global pipeline • Financing global supply chains • Organizing for global logistics • Future of global sourcing
- 29.