BUILDING SCM COMPETENCY FOR GLOBAL CHALLENGES

Dr V K Gupta dr.vkgupta@gmail.com Mobile 9811039584

World is flat Developed and developing Rich and poor Haves and Have not's Club of select nations or MNCs Changed to --- global village ---- digitally connected ------ interdependent --------- information revolution -------- low entry barrier

Time and Distance Competitive edge earlier ----------- losing relevance

A majority of companies believe they are executing Chinese outsourcing strategies less effectively than the competition

CHALLENGES IN GLOBAL LOGISTICS EXECUTION INCLUDE:

Sub-optimal sourcing results due to inadequate total cost data High overhead costs to manage the global sourcing and logistics function High inventories and lost sales as companies struggle to match supply and demand in the long supply chain High costs for expedited freight High levels of inbound lead-time variability Reactive rather than proactive logistics management Disconnect between inbound international movements and domestic transportation operations

Global Logistics and Trade Management Requires Learning the Rules of a New Game

FOCUS AREAS FOR GLOBAL SUPPLY CHAINS

Total Delivered Cost Management Global Logistics Process Automation End-to-End Visibility Supplier Portals and ASN (Advance Ship Notices ) Capabilities

Total Product Identification and Regulatory Compliance

Dynamic Routing Variability Management

Integrated International and Domestic Workflow

Integrated Planning and Execution Platform Financial Supply Chain Management

COMPETENCIES REQUIRED

Business Perspective - Global and Local

World Economy and its inter relationships Political systems in countries you have interests in International and local laws as applicable to your business Technologies exiting and emerging and trends Demographic shifts Environment Analysis - PEST, Immediate environment Industry analysis - Porters 5 forces analysis
Linking business goals with Supply Chain function goals

Strategic thinking and ability

Foresight recognizing global and local changes impacting your business Internal Analysis SWOT Risk Management Risk assessment and risk mitigation strategies , Currency risk and Hedging Ability to align Cos Vision, Mission and Goals with SCM Objectives and Strategies

MANAGEMENT CYCLE FOR EFFECTIVE SCM

SC Planning

Forecasting Network design Networking Supplier selection, development and evaluation Efficient IT backbone Relationship management Building Efficiency and Agility in SC design Financial Supply Chain Fund Flow Management

Technology Ability to understand and take advantage of Political initiatives Trade Agreements, Tariffs, Changes in tax structure etc.

COMPETENCIES REQUIRED
Cross culture management skills Leadership and team building skills

Managing people Motivational skills Communication skills Negotiation skills

Change Management - Ability to change strategies with change in external or internal environment Execution Skills - Ability to focus on efficiency while maintaining agility

Never losing sight of triple bottom line Profit, environment and people

People impact Social impact Environmental impact

Work together to reduce environmental impacts of the supply chain Relationship management

3 Rs

REFERENCES

http://www.businesslink.gov.uk accessed on April 19, 2012 http://media.treehugger.com accessed on April 19, 2012 The 10 Keys to Global Logistics Excellence http://www.scdigest.com/assets/Reps/SCDigest_Global_Logistics _Excellence.pdf accessed on April 19, 2012 Supply Chain 2006 a Case Study; Supply Chain Digest, June 1, 2006; http://www.scdigest.com/assets/FirstThoughts/06-0601.cfm The Challenges in Chinese Procurement; McKinsey Quarterly, 2006 Special Edition; http://www.mckinseyquarterly.com Client Issues for Global Trade Management; Dwight Klappich, Gartner Group; Sept. 12, 2005 Why are Enterprise Engines Running in Reverse?; Erik Keller, in Manufacturing Business Technology; January, 2005; http://www.mbtmag.com/current_issues/2005/jan/col2.asp http://www.meiji.ac.jp/cip/english/frontline/yamashita/index.html accessed on April 19, 2012