BÀI GIẢNG 8: CHIẾN LƯỢC GLOBAL LOGISTICS pdf

GLOBAL LOGISTICS MANAGEMENT
GLOBAL LOGISTICS MANAGEMENT
LECTURE 8: GLOBAL LOGISTIC
STRATEGIES
Agenda
Agenda

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 Summary
1 Definition of Global Logistic
1 Definition of Global Logistic
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

cost
2 Barriers to Global Logistic
2 Barriers to Global Logistic
Operation
Operation

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
operations
2 Barriers to Global Logistic
2 Barriers to Global Logistic
Operation
Operation

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 globally
2 Barriers to Global Logistic
2 Barriers to Global Logistic
Operation
Operation

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
3 Basic conditions for GLO

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 company
4 Global business organization
4 Global business organization
Firms 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 with GLO
5 Some specific problems with GLO

Political and 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 training
5 Some specific problems with GLO
5 Some specific problems with GLO

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 for
6 Strategic competencies needed for
Efficient GLO
Efficient GLO
Positioning


The selection of strategic and structural
approaches to guide global operations
Integration

The establishment of what to do and how to do
it creatively
Agility

The achievement and retention of global
competitiveness and global customer success
Measurement

The internal and external monitoring of global
operations
7 Strategies for Global Logistic
7 Strategies for Global Logistic
Operation
Operation

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 margin

7 Strategies for Global Logistic
7 Strategies for Global Logistic
Operation
Operation

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