Chapter 2 International Supply Chain Management

Annotations:

• Introduced in 1956 but had impact in international trade until 1970´s. DHL: 1969 Federal Express (FedEx): 1973 Air transportation.

Annotations:

• -Accurate (right parts, right quantity). -Complete (no back-ordered parts). -Packaging appropriate. -Specific time frame.

1. Materials Requirement Planning (MRP)

   Annotations:

   • Management tool to determine what to produce and what quantity, in function if what it sells to its customers.
2. Just-in-time

   Annotations:

   • Management philosophy (Japan 1970´s-1980´s)->planning the manufacturing of goods in such a way that they are produced just before they are needed in the next step of the assembly process.
3. Distribution Resources Planning (MRP)

   Annotations:

   • Management tool that allows a retail firm to determine what to order from its suppliers and in which quantity, in function of what it sells to its customers. 

1. IBM six greatest challenges
   1. Cost containment

      Annotations:

      • +Fuel Cost +Need for flexibility +Expectations of internal and external customers
   2. The visibility to the supply chain

      Annotations:

      • Management of information that is generated in the supply chain (analized and distributed right).
   3. Risk management
   4. Increasing customer demands

      Annotations:

      • -Delivery performance -Cost containment -Information availability -Levels of service
   5. The globalization of the economy
   6. Sustainability efforts

1. Supply Chain Management
   1. Logistics

      Annotations:

      • Physical aspects of the movement of goods from supplier and customers.
      1. International logistics
         1. Elements
            1. The environment

               Annotations:

               • -Language and culture.  -Differences in the infrastructure of international logistics.
            2. Decisions about transportation

               Annotations:

               • -Distances. -Modes of transportation. -Different carriers. -Transportation documents. -Transit times.
            3. Intermediaries involved

               Annotations:

               • -Banks. -Insurance companies. -Freight forwarders. -Goverments.
            4. Risks and hazards

               Annotations:

               • -Packaging
            5. International insurance
            6. International means of payment
            7. Terms of trade
               1. Incoterms
            8. Crossing of borders
            9. Sustainability
   2. International Supply Chain Management

      Annotations:

      • Integrates domestic and international logistics. Management of relationships with suppliers and customers (domestic and foreign).

Annotations:

• Percentage of GDP spent on logistical: USA->8.5% GDP China-> 18.3% GDP World-> 10.4%

1. International reverse Logistics

   Annotations:

   • Management of products, packaging returned by customers.
2. International logistics

   Annotations:

   • International logistics represents the 15% of the total volume of international trade