BUILDING RELATIONSHIPS IN SUPPLY

CHAIN Global Supply Chain Operations

Global supply chain management
TWO CRUCIAL FACTORS TO COMPANY'S is the process of deciding how
GROWTH the whole supply chain will
-The ability to maintain market collaborate to deliver the
share by selling products at a greatest possible customer
profit. service while being as cost-
-The ability to access a effective as possible.
consistent and high-quality
supply of necessary products. they must consider several key
factors:
SUPPLY CHAIN RELATIONSHIPS 1. Borderless
Relationships with Suppliers In terms of procurement,
-timely and honest promotion, production, and
communication; -a spirit of delivery, national boundaries
collaboration a are no longer a barrier to
-similar vision for the future supply chain growth.
Relationships with Regulatory 2. Cyber-Connected
Bodies government, local, or The global business environment
federal has developed from a series of
Relationships with Industry indigenous decentralized local
Voices markets to an integrated single
economy dependent on highly
THREE TYPES OF SUPPLY CHAIN significant cyber links.
RELATIONSHIPS 3. Deregulated
Deregulation is the process of
VERTICAL - The traditional reducing or eliminating the
linkages between firms. regulations and prohibitions
HORIZONTAL - Business that stifle corporate control
arrangements between firms that 4. Environmental consciousness
occupy "parallel" positions in Concerns regarding the negative
the supply chain. FULL impact of manufacturing and
COLLABORATION - Business economic development on the
arrangements between firms that environment have risen in the
occupy both vertical and last decade. The global movement
parallel. toward greener and more
environmentally sustainable
Range of Supply Chain business practices are crucial
Relationships Transactional - in today's global supply chain
Both parties are at "arm's development.
length, " with limited 5. Social Responsibility
commitment. A growing number of consumers
Collaborative - Two or more are basing their purchasing
business organizations cooperate decisions on the supply chain's
to drive better long-term ethical standards and social
combined results. responsibility
Strategic - This represents deep 6. Strategic Challenges in
and long-term commitments among Global Supply Chain
supply chain partners.
At the macro level, four major 4. Develop the "Blue Ocean
systemic challenges will have a Strategy"
long-term and overall effect on 5. Pursuing World Class
the hospitality industry, as Excellence
well as the global supply chain
management network.
7.Market Dimensions SUPPLY CHAIN PERFORMANCE MEASURE
The continuing commodity AND QUANTITATIVE MEASURE
instability in the global
economy has hindered various SUPPLY CHAIN METRICS
supply networks' capacity to The numbers, ratios, and
manage responsiveness parameters used to measure
efficiently. supply chain performance or KPI'
8. Technology Dimensions s (Key performance indicators).
The main strategic difficulties Supply chain metrics are
of supply chain management have essential for measuring a
long been identified as company’s progress in achieving
technology and the degree of their goals.
difficulty in using technology
for competitive advantages. 5 SUPPLY CHAIN METRICS TO TRACK
9. Resource Dimensions  On-time delivery
Worldwide supply chain growth is  Damage-free delivery
driven by the demand for global  Customer order cycle time
access to fresh capital and the  Freight bill accuracy
requirement to allow the  Inventory turnover
productive use of existing
resources to generate economic
output. THE SUPPLY CHAIN OPERATIONS
10. Time Dimensions REFERENCE (SCOR) MODEL
The bulk of big global supply The six processes are:
chain challenges are time- 1. Plan
related, and they are more so 2. Source
than ever before. 3. Make
4 Deliver
1. Collaboration 5.Return
There are a number of obvious 6. Enable
reasons why collaboration is one
of the most favorite supply QUANTITATIVE MEASUREMENTS
chain management approaches. For measuring logistics, there
A. Sharing resources are a range of quantitative
B. Achieve Synergy measures to assess – and
C. Risk sharing improve – the performance of
D. Innovation each element of a supply chain.
2. Supply Chain Integration
The nature of a supply chain is THE RANGE OF QUANTITATIVE
that it is usually a network MEASUREMENTS
which consists of a number of  On-time delivery (OTD)
participating firms as its  Logistics costs as a
member percentage of sales
3. Divergent Product Portfolio
 Inventory turnover ratio
(ITR)
 Complete order fill rate
 Average order cycle time and
variability
 Items picked per person per
hour
 Average backorder fill rate
 Sales lost due to stock-out
 Percentage error pick rate
 Logistics cost per unit