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1、International Supply Chain Management International Supply Chain ManagementHistorical Development of International LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of International Logistics

2、The Economic Importance of LogisticsThe Economic Importance of International Logistics International Supply Chain ManagementHistorical Development of International LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Cha

3、in ManagementDefinition of Elements of International Logistics The Economic Importance of LogisticsThe Economic Importance of International LogisticsHistorical Development of International LogisticsFramework The term “Logistics” is based on the physical movement of goods.The modern interpretation of

4、 the term “logistics” has its origins in the military.Business logistics include all the activities related to the physical movement of goods (upstream and downstream) and related paperwork.Historical Development of International LogisticsThe Early, Slow Days Very early international logisticians we

5、re traders who bought and sold goods internationally (Silk Road, for example).As trade expanded, international logistics grew.In the early days, international logisticians were concerned about making sure that the goods arrived in good condition and at the lowest possible cost.Historical Development

6、 of International LogisticsThe Move Toward SpeedThe advent of containers in ocean trades (mostly 1960s and 1970s) lowered transit times substantially.International air shipments became an increasing percentage of all shipments in the 1980s: the number of destinations served by airlines grew.air ship

7、ments became increasingly cost competitive with surface alternatives.Historical Development of International LogisticsThe Emphasis on Customer SatisfactionIn the 1980s, with very high interest rates, companies shifted their emphasis to inventory reductions.International logisticians became ever more

8、 focused on transit times in order to minimize inventory costs, raising the expectations of customers.Fast delivery times facilitated the adoption of different inventory management techniques: Just-In-Time MRP MRP IIHistorical Development of International LogisticsThe Emphasis on Customer Satisfacti

9、on Just-In-Time A management philosophy that consists of planning the manufacturing and shipment of goods in such a way that they are produced and delivered just before they are needed in the next step of the assembly process. In the US, JIT is often accomplished with the adoption of MRP and MRP II

10、systems.Historical Development of International LogisticsThe Emphasis on Customer Satisfaction Materials Requirement Planning (MRP) A computer-based management tool that allows a manufacturing firm to determine what to produce, and in which quantity, in function of what it sells to its customers.Man

11、ufacturing Resources Planning (MRP II) A computer-based management tool that uses MRP at its core, and that includes other functions in the firm, such as finance and marketing. International Supply Chain ManagementHistorical Development of International LogisticsDefinition of Logistics and Supply Ch

12、ain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of International Logistics The Economic Importance of LogisticsThe Economic Importance of International LogisticsDefinition of Logistics and Supply Chain Management Logistics “Logistics is

13、 that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements.”Definition of Logist

14、ics and Supply Chain Management Definition of Logistics and Supply Chain ManagementSupply Chain Management Encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination a

15、nd collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. Definition of Logistics and Supply Chain ManagementThree views on the

16、 relationship between logistics and SCM Definition of Logistics and Supply Chain ManagementSupply Chain Management Supply Chain Management includes more activities than Logistics Management: the “Inclusionist” viewpoint prevails. International Supply Chain ManagementHistorical Development of Interna

17、tional LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of International Logistics The Economic Importance of LogisticsThe Economic Importance of International LogisticsDefinition of Internat

18、ional Logistics International Logistics The process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country. International Supply Chain ManagementHistorical Development

19、 of International LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of International Logistics The Economic Importance of LogisticsThe Economic Importance of International LogisticsDefinition

20、of International Supply Chain Management Definition of International Supply Chain ManagementInternational Supply Chain Management Supply Chain Management is inherently global, with firms buying from foreign suppliers or selling to foreign customers, but domestic logistics activities and internationa

21、l logistics activities are distinct and managed differently. International Supply Chain ManagementHistorical Development of International LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of I

22、nternational Logistics The Economic Importance of LogisticsThe Economic Importance of International LogisticsElements of International LogisticsInternational Logistics Characteristics: The environment in which international logisticians operate is quite different from the domestic environment.The de

23、cisions regarding international transportation are eminently more complicated.The number of intermediaries involved is greater .The inherent risks and hazards of international transportation are much more significant. Elements of International Logistics International Logistics Characteristics:Intern

24、ational insurance is much more complex.International means of payment are more involved.Terms of trade are much more complicated.The crossing of borders represents specific challenges.Inventory is managed differently. International Supply Chain ManagementHistorical Development of International LogisticsDefinition of Logistics and Supply Chain ManagementDefinition of International Logistics Definition of International Supply Chain ManagementElements of International Logistics The Economic Importance of L

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