Page 247 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management Anand Thakur, Lovely Professional University

Notes Unit 11: Supply Chain Logistics Design

CONTENTS
Objectives
Introduction
11.1 Supply Chain Design

11.2 Global Strategic Positioning
11.2.1 Factors Driving Global Supply Chain Management
11.3 Global Supply Chain Integration

11.3.1 Stages of Regional Integration
11.3.2 Integration Status
11.4 SC Security
11.4.1 The Strategy
11.5 International Sourcing

11.6 Summary
11.7 Keywords
11.8 Review Questions

11.9 Further Readings
Objectives

After studying this unit, you will be able to:
 Understand the Supply Chain Design
 Explain the Global Strategic Positioning

 Discuss the Global Supply Chain Integration
 Describe the SC Security
 Explain the International Sourcing

Introduction

There has been a major change in how companies operated in the 1980s and how they operate
today. Earlier, large multinational companies tended to focus their efforts on establishing leaner
manufacturing processes, total quality controls and new offices in strategic markets as the
means to develop new business. Their logistics functions were generally handled in-house or by
several in-country third-party logistics providers.

But with the advent of the new global economy, previously closed or protected world markets
have begun to open, often with improved regional trading infrastructures. Economies are
beginning to flourish with the increasing growth of mid-sized, high-tech businesses. Senior
managements of successful multinational companies have begun questioning the need to replicate
every element of their organisation in each marketplace.

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