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.

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.

Question 1

SSCs - streamlining the procurement process

Problem – Lack of IT application integration across countries

Solution – Project ‘Thales’

1. Creation of Shared Service Centers (SSCs) in all countries

2. PeopleSoft – PO module

3. Common information system platform

4. Order placement at 1 location in 1 country

5. Electronic catalogues

6. 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.

(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?

Question 2

(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

Front office operations

Suppliers

Standardized

Logistics

Procurement

Warehousing

IT

Information(sharing)

(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?

Question 3

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

IssuesIntegration 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/features-functions/scm/scm-features-functions.html

http://www.slideshare.net/hazman/supply-chain-management

http://en.wikipedia.org/wiki/Supply_chain_management

THANK YOU!