Global Supply Chains

Global Supply Chains: The global environment that characterizes the business world of today has pointed out the importance of developing strategies that go beyond the geographical boundaries of one country. Nowadays, it is not uncommon to see a company that develops a new product in the US, manufactures it in Asia and sells it in Europe. The world is becoming a “market place” not only for selling but for also for buying. Wage rate differentials, expanding foreign markets, faster information technologies and improved transportation are breaking down barriers of time and space between countries forcing companies to take a global dimension, i.e., the world is becoming flat. Competing (and being successful) in this “new” world requires a different approach. 

The essential question then becomes what makes some companies more successful than others. And the definition of Global Supply Chains is at the core of the answer (e.g., Who does What and Where becomes critical for an iPhone to reach you in the most efficient and effective manner). Global Supply Chains are the response to the increasing integration of international markets as firms try to remain competitive. More importantly, the battlefield is changing from “my company” against “your company” to “my supply chain” against “your supply chain.” We are competing with everyone from everywhere for everything!  

Competing in this “new” globalized world requires a different approach, and this course will replace conventional thinking about management in a global world with new, fresh approaches. We will study different approaches for coordinating and working with suppliers and strategic partners in the company’s global supply chain, and strategies for aligning the incentives of the different players throughout the supply chain to develop successful collaboration relationships. 

Downturns present interesting opportunities that involve an assessment of vulnerabilities in order to minimize their impact. Resources are limited and successful supply chain management strategies require the incentives of all players to be properly aligned (who does what where). Supplier relationships are then critical to any company faced with the challenge of sustained profitability. Suppliers can directly impact the financial performance as they could influence the cost of purchased goods and services.  

The challenge is to decide what and how to outsource in order to maintain control over the key elements that provide the core competence.  Many leading companies have realized that is worthwhile investing to make sure outsourcing is properly executed and positively influence product development costs, inventory levels, after-sales service and the fulfillment of customer demand.  Shareholders pressures to increase the value added and reduce the capital investment on the non-return generating assets, also influence management decision to consider outsourcing options. 

Why are Global Supply Chains So Important?

In these two sessions the objective is to understand and be prepared to face the managerial challenge involved in developing a global perspective and global capabilities through the right implementation of Global Supply Chain Management Strategies. Using case studies about real companies and original research, we challenge some of the conventional thinking and replace it with new approaches. Change the paradigm: more than the traditional vertical approach (“silo mentality”), the right business processes require a horizontal (“cross functions”) perspective. As mentioned before, the battlefield is supply chain vs. supply chain not company vs. company.

Global Supply Chain Management is conceptualized as the combination of Demand Management, Procurement Management and Fulfillment Management. The learning is based on theoretical frameworks with practical applications based on real world cases from different industries and different regions of the world. We introduce innovative frameworks that characterizes the winning and qualifying criteria for allocation resources in light of the challenges faced in Global Logistics and Supply Chain Management. 

To start getting into the content of what Supply Chain Management is all about, watch this video: 

https://www.youtube.com/watch?v=1KtTAb9Tl6ELinks to an external site.

Other readings of interest:

• https://www.washingtonpost.com/business/interactive/2021/supply-chain-issues/Links to an external site.

• https://www.bloomberg.com/news/newsletters/2021-08-30/supply-chain-latest-one-stuck-container-in-shanghai-reveals-crisis?sref=9KRvFX43Links to an external site.

• https://nationalinterest.org/blog/buzz/how-‘nearshoring’-can-revitalize-us-economy-201775?utm_source=pocket_mylistLinks to an external site.

• https://www.bloomberg.com/opinion/articles/2022-03-13/ukraine-war-will-accelerate-the-decline-of-globalization?sref=9KRvFX43&utm_source=pocket_mylist

• https://www.ti-insight.com/wp-content/uploads/2024/05/Post-Globalization-Supply-Chains-S3.pdf?utm_source=pocket_saves

• https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains?utm_source=pocket_saves

• https://www.mckinsey.com/capabilities/operations/our-insights/operations-blog/canal-delays-and-the-impact-on-global-supply-chains

• Exploring 2023-2024 Logistics Trends in Latin America (attached below)

• A perfect storm for container shipping (attached below)