GSC 5620 Exam 1

• -Reduced transport intensity of freight
• -Falling Product prices
• -Deregulation of transport
• -Productivity Improvements
• -Emphasis on inventory reduction
• -Changes in company structure

Getting the right product, quantity, quality, place, & time for the right customer and cost.

- Network of organizations that are involved through upstream and downstream linkages

• - Different processes and activities that produce value in the form of products and
• services for the consumer

- Management across and within a network of upstream and downstream organizations of both relationships and flows of material, information, & resources .

– Purpose of SCM are to create value, enhance efficiency, and satisfy customers

• - Physical flow of material
• - Flow of information
• - Resources (Finance, people, & equipment)

• -World Exports grew from $62 Billion in 1950 to $16,000 Billion by 2008
• (Subsequently declined after)

• -Word Trade Organization 1995
• -Asia-Pacific Trade Agreement (APTA) 1975
• -Central European Free Trade Agreement (CEFTA) 1992
• -North American Free Trade Agreement (NAFTA) 1994
• -Trans Pacific Strategic Economic partnership (TPP) 2005

• -China
• -Germany
• -US

• –Customs
• –Infrastructure
• –International shipments
• –Logistics competence
• –Tracking & tracing
• –Timeliness

• 1.Germany
• 2.China (Singapore)
• 3. Sweden
•     (The US is #15)

• –Maximum vessel size in a country’s ports
• –Number of companies providing services to ports
• –Number of services offered by the liner companies
• –Number of ships deployed on services to ports
• –TEU capacity on the deployed ships

• -Maximum Vessel Sizes and TEU have increased
• -Services, Vessels, and Companies have decreased

• The port of Shanghai
• (In 2010, it handled 29.07 million 20ft TEU's)

• The APL Southampton
• -Size: 347m X 45m
• -Capacity: 10740 TEU
• -Speed: 5.7/5.5 Knot

A company when doing business abroad thinks and acts as if they were still operating in their home country

A company adopts the host country perspective

A company acts completely independent of geography and adopts a global perspective, and will tailor to the local environment as appropriate

• Financial flows from a company in one country to invest (for example in a factory) in another country
•  -Very significant in overall global economy

The offered $1 Billion in Incentives for employees which encouraged $7 Billion in Foreign Automaker investment

Traditional: Vessels move in both directions on each route

Circular: Vessels move in one direction only. Usually in the direction of greatest traffic volume.

• The transfer to a third party of the management & delivery of a process previously performed by the company itself
• -Requires: SLA's, Order winners & qualifiers, supplier development
• -Creates: Virtual Organizations

• The transfer of specific processes to lower cost locations in other countries
• (In offshoring, the company may still own and control the process itself in the lower cost location)

They moved it to Indonesia because of the lower wages

• -Need for frequent reminders
• -Late delivery
• -Mistakes
• -Cultural Differences

• 1. Master - Servant
• 2. Consultant
• 3. Peer to peer relationship
• 4. Competitive

• 1. Open market Negotiation
• 2. Cooperation
• 3. Coordination
• 4. Collaboration

Corporate Strategy => Business Unit Strategy => Functional Strategy

• - Eliminating waste in a pull based value stream of activities with level production
• - Just-In-Time inventory management

• -Overproduction
• -Waiting
• -Transportation
• -Inappropriate processing
• -Unnecessary inventory
• -Unnecessary motion
• -Defects

• - A demand-pull chain designed to cope with volatile demand
• (Structured to allow maximum flexibility)

• -Enabled by mass customization
• (Often incorporates postponed production)