Managing the Global Supply Chain

By:Shenayal Goel Shruti Sharma Siddharth Sinha Shiva Talwar

Executive Summary
Case - Supply chain management practices

Issues
Customization of supply chain country wise Standardization of business processes across world Integration at the center.

Findings
Use of IT to enhance efficiency Procurement EDI & Shared Service Centers (SSCs) Logistics Third Party Logistics solution providers (3PLs) Warehouse WMS with Radio Frequency scanning.

Conclusion Success
Consistent efforts for global presence Efficient management of global supply chain.

Question 1

In tune with its global vision, Carrefour streamlined and standardized its supply chain processes in various countries. Explain how Shared Services Centers (SSCs) helped the company streamline its procurement process.

SSCs - streamlining the procurement process

Problem Lack of IT application integration across countries

Solution Project Thales

1. 2. 3. 4. 5. 6. Creation of Shared Service Centers (SSCs) in all countries PeopleSoft PO module Common information system platform Order placement at 1 location in 1 country Electronic catalogues Consolidation of orders

Benefits
Automation of procurement process Lesser documentation Enhanced transparency Standard Financial processes Easier flow of information Reduced Operating cost Better bargaining power.

Question 2
(a) Explain how Carrefour used IT in Warehouse Management. (b) What elements of Supply chain must a company Customize and what it should Standardize while managing a global Supply chain?

(a)

IT in Warehouse Management

Warehouse Management System (WMS) Orders for Shipment of goods Radio frequency (RF) scanning Integration of IT systems Elimination of expired products.

Benefits
Centralization Time schedule Better space utilization Inventory management
Reduced stock levels Smooth flow No running out of stock 99.97% inventory accuracy levels.

Elements of Supply chain

Customized
Adaptability Transportation cost Back office operations

Standardized
Logistics Procurement Warehousing

Front office operations

Suppliers

IT
Information(sharing)

Question 3
(a) Carrefour is one of the most Global retailers in the world. Prepare a plan for the company to effectively integrate its supply chain operations across borders.

(b) What issues will the company face in integrating its global supply chain operations? (c) and how should it overcome them?

Plan for Integration

SCM
Demand forecasting tools Planning capabilities

SRM Supplier Relationship Management

TMS Transportation Management System

Use of Intranet & Extranet POS Point of Sale System

BPM Business Process Management

ERP Enterprise Resources Planning
All functional areas Integrate business functions into 1 information system

Issues Integration of global supply chain

Complexity of Supply Chain Network
Large No. of Suppliers and distributors

Delays due to cross-border problems

Customs, Taxes, Politics Price fluctuations

Need of IT support for Communication & Collaboration

Complexity
How much differentiation / customization / localization

Solutions to overcome problems

Internet - effective communication enhancer Share information about consumer demand Increase speed of processing transactions Using IT & Softwares
ERP EDI Intranet & Extranet

References
http://mababdullah1.kau.edu.sa/Files/857/Researches/58325 _28494.pdf http://www.technologyevaluation.com/featuresfunctions/scm/scm-features-functions.html http://www.slideshare.net/hazman/supply-chainmanagement http://en.wikipedia.org/wiki/Supply_chain_management

THANK YOU!