BÀI GIẢNG 8: CHIẾN LƯỢC GLOBAL LOGISTICS

Global logistics is defined as the designand management of a system that directsand controls the flows of materials into,through and out of the firm acrossnational boundaries to achieve itscorporate objectives at a minimum totalcost...
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BÀI GIẢNG 8: CHIẾN LƯỢC GLOBAL LOGISTICS GLOBAL LOGISTICS MANAGEMENTGLOBAL LECTURE 8: GLOBAL LOGISTIC STRATEGIESAgendaAgenda1 Definition of Global Logistics2 Barriers to Global Logistic Operation3 Basic conditions for GLO4 Global business organization5 Some specific problems with GLO6 Strategic competencies needed for an efficient GLO7 Strategies for Global Logistic Operation8 Summary1 Definition of Global Logistic Definition Global logistics is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost2 Barriers to Global LogisticOperationOperationtrue global operations need so many resources that they are limited to very large companiescustomers in different countries may demand different types of productsproducts may have features which mean that they are not suitable for global operations2 Barriers to Global LogisticOperationOperationglobal products of any kind are not viewed favourably by some customers( Sony, Toyota, Pepsi)organisations lack the human and technical resources needed to work globallyorganisations may not be able to build the right structures or design strategies that work globally2 Barriers to Global LogisticOperationOperationmanagers in different regions have fundamentally different objectives for themselves and the organisationother cultural and economic differences make co-ordination too difficulteach country, has different infrastructure, facilities and capabilities that make common operations impossible.3 Basic conditions for GLO BasicOutsource logisticsHave operations with limited needs of logisticsConcentrate production and sourcing in one area and then sell globallyOr concentrate production in one area and source and sell globallyUse postponement to move the finishing of production down supply chainsOperate as a local company4 Global business organization GlobalFirms may organize as the following formsNational companiesInternational companiesMulti-national companiesGlobal companies There are clear benefits of moving towards global operations (e. g expand market and economies of scale)5 Some specific problems withGLOPoliticaland legal systems: each country has its own political and legal systems so international company must adapt to local environment.Economic conditions: developed countries vs developing countriesTechnology available: technological difference may cause extra operational costInfrastructure: potential extra transportation costSocial systems and culture: extra cost may be incurred due to cultural training5 Some specific problems withGLOFinance: e.g exchange rate fluctuation, international financial managementCompetition in logistics: global company vs local companyGeography: geographical difficulties increase cost for transportationCustoms: Each country or economic zone has its own policy on customsDocumentation: many types of documentation depends on each country. E.g potential extra cost ( corruption)6 Strategic competencies needed forEfficient GLOEfficientPositioning The selection of strategic and structural approaches to guide global operationsIntegration The establishment of what to do and how to do it creativelyAgility The achievement and retention of global competitiveness and global customer successMeasurement The internal and external monitoring of global operations7 Strategies for Global LogisticOperationOperationLicensing or franchising: less risk of failure but less control of logistic systemExporting finished goods: the need to set up local business partner for distribution, small risk, less profit marginSetting-up local sales and distribution networks: higher investment, better control and higher profit margin7 Strategies for Global LogisticOperationOperationExporting parts and using local finishing and assembly: involve in global and regional logistic. High initial investment, high risk, lower cost of operation.Joint venture with a local company: small risk, shared knowledge,partly control, fast access to local distribution channelFull local production: high initial investment, full control, high risk, high profit margin and can get competitive advantages locally.SummaryGlobal logistic operation has to face with many barriersSome specific factors have great influence over GLO to be efficiently operatedIn order to move global successfully, firms need strategic competenciesAccording to local environment, global companies must choose appropriate strategies to expand its supply chain