Unit 1 - Introduction to Supply Chain Management

What are the key drivers for site selection in internationalisation?

- Labour costs - Employment regulations - Available skills - Land costs and availability of suitable sites - Energy costs - Availability of suitable suppliers - Transport and logistics costs - Transport linkages - Communication and infrastructure costs - Political stability - Environmental regulations - Taxation rates - Government support - Current stability - Access to markets - Community issues and quality of life

Identify value adding activities?

- Source and procure inputs - Materials and labour - Transform - Marketing and sales - Distribution - Services

What should best practice supply chain management and logistics lead to?

Cost reductions and value addition through service enhancements.

Describe directional imbalances?

Directional imbalances occur when freight movement is not equal. In other words, directional imbalances arise in freight markets when there are mismatches in the volume or types of freight moving in opposite directions in a freight market. Directional imbalances can ... - Lead to lack of availability of containers / transport. - Lead to high transportation costs on some routes. - Lead to a lack of space at ports / need to use space out with port areas for container storage. - All lead to an increased cost.

Identify the key attributes of supply chains?

During the 1960s, supply chains were fragmented, however, soon after the 1980s, supply chains were highly integrated. The separate functions of supply chains include: - Transport - Warehousing - Purchasing - Marketing - Finance The process involves: - Extractors - Suppliers - Manufacturers - Distributors - Retailers - Consumers

What are the different ways in which companies can think about internationalisation?

Ethnocentricity - where the company when doing business abroad thinks only in terms of the home country environment. Polycentricity - where the company adopts the host country perspective. Egocentricity - where the company acts completely independent of geography and adopts a global perspective, and will tailor to the local environment as appropriate.

Describe key attributes of globalisation?

In recent decades, there has been considerable growth in World Trade. One of the key facilitators of this trade growth has undoubtably been the humble shipping container.

Demonstrate the links between supply chain management and logistics management?

Supply chain management is an overarching concept that links together multiple processes, while logistics refers to the movement, storage and flow of goods, services and information within the overall supply chain. Henceforth, a unionist view is adopted in which logistics is seen as part of a wider entity, supply chain management.

Define what is meant by supply chain management?

Supply chain management is the management of a network of relationships within a firm and between interdependent organisations and business units.

Describe logistics?

The detailed coordination of a complex operation involving many people, facilities, or supplies. The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods.