JANUARY 24, 2024
A107
GLOBAL SUPPLY CHAIN MANAGEMENT
INTRODUCTION, GLOBAL TRENDS, DIGITAL SUPPLY CHAINS,
ECOMMERCE & OUTSOURCING
BIRTHE WECKX
UC LEUVEN-LIMBURG
, Table of Contents
Table of Contents ......................................................................................................................... 1
Module 1: Intro to GSC & Strategic Supply Chain Management ...................................................... 5
1. Supply Chain Management Introduction ........................................................................ 5
What is Supply Chain Management? ................................................................................. 5
What is a disruption of a Supply Chain? ............................................................................ 5
The different entities within the Supply Chain .................................................................. 5
The four flows .................................................................................................................... 6
The top-5 world’s best supply chains ................................................................................. 6
The 5 objectives of SCM..................................................................................................... 6
The 5 benefits of SCM ........................................................................................................ 8
2. What is a warehouse? .................................................................................................. 11
What is a Warehouse? ..................................................................................................... 11
What is a Distribution Center? ......................................................................................... 11
Today’s Warehouses ........................................................................................................ 11
Warehousing Objectives .................................................................................................. 11
Warehousing Functions ................................................................................................... 13
3. Strategy ........................................................................................................................ 17
Business Strategy ............................................................................................................. 17
Organizational Strategy ................................................................................................... 17
Supply Chain Strategy ...................................................................................................... 18
4. Central vs. Decentral .................................................................................................... 18
5. The Right Number......................................................................................................... 19
6. What do we store? ....................................................................................................... 19
Types of Inventory ........................................................................................................... 19
Basics of Inventory ........................................................................................................... 20
Functions of Inventory ..................................................................................................... 22
Safety Stock ..................................................................................................................... 22
Not every item is the same .............................................................................................. 23
7. About variability in the Supply Chain ............................................................................ 24
8. Conflicts of interest ...................................................................................................... 25
Module 2: Global Trends ............................................................................................................ 26
1. Reshaping the Supply Chain.......................................................................................... 26
Vertical vs. Horizontal (& Keiretsu) .................................................................................. 26
Push/Pull & Chain Inversion............................................................................................. 27
1|Page
, 2. Reverse & Circular Logistics .......................................................................................... 31
Circular Logistics .............................................................................................................. 31
Reverse Logistics .............................................................................................................. 31
3. Mass Customization...................................................................................................... 32
4. Nearsourcing, Crowd Sourced Delivery & Q-Commerce ............................................... 33
Nearsourcing ................................................................................................................... 33
Crowd Sourced Delivery................................................................................................... 34
q-Commerce .................................................................................................................... 34
5. Grow Broader ............................................................................................................... 34
6. Containerization ........................................................................................................... 35
7. Relations ....................................................................................................................... 35
8. Continuous Process Improvement ................................................................................ 36
9. City Distribution ............................................................................................................ 37
10. Self-Driving Logistics ..................................................................................................... 37
11. Hyperloop/Cargoloop ................................................................................................... 38
Chapter 3: Digital Supply Chain ................................................................................................... 39
1. A brief history ............................................................................................................... 39
2. Technology Overview ................................................................................................... 40
Whole Technology Framework ........................................................................................ 40
eCommerce Platform ....................................................................................................... 41
ERP – Enterprise Resource Planning Systems .................................................................. 41
APS – Advanced Planning Systems ................................................................................... 42
SCEM – Supply Chain Event Management ....................................................................... 42
WMS – Warehouse Management System ....................................................................... 43
TMS – Transport Management System ............................................................................ 44
T&T – Track & Trace System ............................................................................................ 44
3. AIDT .............................................................................................................................. 45
Introduction ..................................................................................................................... 45
RFID ................................................................................................................................. 45
Voice Picking .................................................................................................................... 46
Smart Glasses................................................................................................................... 46
4. Building a Digital Supply Chain...................................................................................... 46
What & Why .................................................................................................................... 46
8 Key Elements of a DSC .................................................................................................. 47
Technologic Building Blocks ............................................................................................. 48
Chapter 4: eCommerce ............................................................................................................... 51
2|Page
, 1. Facts & Figures.............................................................................................................. 51
2. eCommerce Mechanisms ............................................................................................. 54
eCommerce Value Chain .................................................................................................. 54
The Influence of Social Media .......................................................................................... 55
Long Tail........................................................................................................................... 55
Multi-Channel vs. Cross-Channel ..................................................................................... 56
Customer Service ............................................................................................................. 57
3. Amazon Case ................................................................................................................ 57
4. Zoom on Asia ................................................................................................................ 58
The Great Firewall............................................................................................................ 58
Why Asia, not America? ................................................................................................... 58
The power of WeChat ...................................................................................................... 59
Focus on defining your online future ............................................................................... 59
Alibaba’s global expansion............................................................................................... 59
Focus on India .................................................................................................................. 60
5. Top 10 Trends ............................................................................................................... 60
The fast dominate the slow ............................................................................................. 60
V-Commerce .................................................................................................................... 61
Augmented and Virtual Reality ........................................................................................ 61
Online and Offline hand in hand ...................................................................................... 61
AI & Personalization......................................................................................................... 62
Social Commerce & Photo Shopping ............................................................................... 62
The rise of Ethical eCommerce ........................................................................................ 63
Luxury, Furniture & spare parts ....................................................................................... 63
In-Car-Commerce............................................................................................................. 64
The battle for your payment transaction ......................................................................... 64
6. Supply Chain ................................................................................................................. 64
Chapter 5: Outsourcing ............................................................................................................... 67
1. Introduction .................................................................................................................. 67
2. Definitions .................................................................................................................... 67
Core Competence ............................................................................................................ 67
Outsourcing ..................................................................................................................... 68
Insourcing ........................................................................................................................ 68
Offshoring ........................................................................................................................ 68
3PL vs. 4PL ....................................................................................................................... 68
Virtual Organization ......................................................................................................... 69
3|Page
A107
GLOBAL SUPPLY CHAIN MANAGEMENT
INTRODUCTION, GLOBAL TRENDS, DIGITAL SUPPLY CHAINS,
ECOMMERCE & OUTSOURCING
BIRTHE WECKX
UC LEUVEN-LIMBURG
, Table of Contents
Table of Contents ......................................................................................................................... 1
Module 1: Intro to GSC & Strategic Supply Chain Management ...................................................... 5
1. Supply Chain Management Introduction ........................................................................ 5
What is Supply Chain Management? ................................................................................. 5
What is a disruption of a Supply Chain? ............................................................................ 5
The different entities within the Supply Chain .................................................................. 5
The four flows .................................................................................................................... 6
The top-5 world’s best supply chains ................................................................................. 6
The 5 objectives of SCM..................................................................................................... 6
The 5 benefits of SCM ........................................................................................................ 8
2. What is a warehouse? .................................................................................................. 11
What is a Warehouse? ..................................................................................................... 11
What is a Distribution Center? ......................................................................................... 11
Today’s Warehouses ........................................................................................................ 11
Warehousing Objectives .................................................................................................. 11
Warehousing Functions ................................................................................................... 13
3. Strategy ........................................................................................................................ 17
Business Strategy ............................................................................................................. 17
Organizational Strategy ................................................................................................... 17
Supply Chain Strategy ...................................................................................................... 18
4. Central vs. Decentral .................................................................................................... 18
5. The Right Number......................................................................................................... 19
6. What do we store? ....................................................................................................... 19
Types of Inventory ........................................................................................................... 19
Basics of Inventory ........................................................................................................... 20
Functions of Inventory ..................................................................................................... 22
Safety Stock ..................................................................................................................... 22
Not every item is the same .............................................................................................. 23
7. About variability in the Supply Chain ............................................................................ 24
8. Conflicts of interest ...................................................................................................... 25
Module 2: Global Trends ............................................................................................................ 26
1. Reshaping the Supply Chain.......................................................................................... 26
Vertical vs. Horizontal (& Keiretsu) .................................................................................. 26
Push/Pull & Chain Inversion............................................................................................. 27
1|Page
, 2. Reverse & Circular Logistics .......................................................................................... 31
Circular Logistics .............................................................................................................. 31
Reverse Logistics .............................................................................................................. 31
3. Mass Customization...................................................................................................... 32
4. Nearsourcing, Crowd Sourced Delivery & Q-Commerce ............................................... 33
Nearsourcing ................................................................................................................... 33
Crowd Sourced Delivery................................................................................................... 34
q-Commerce .................................................................................................................... 34
5. Grow Broader ............................................................................................................... 34
6. Containerization ........................................................................................................... 35
7. Relations ....................................................................................................................... 35
8. Continuous Process Improvement ................................................................................ 36
9. City Distribution ............................................................................................................ 37
10. Self-Driving Logistics ..................................................................................................... 37
11. Hyperloop/Cargoloop ................................................................................................... 38
Chapter 3: Digital Supply Chain ................................................................................................... 39
1. A brief history ............................................................................................................... 39
2. Technology Overview ................................................................................................... 40
Whole Technology Framework ........................................................................................ 40
eCommerce Platform ....................................................................................................... 41
ERP – Enterprise Resource Planning Systems .................................................................. 41
APS – Advanced Planning Systems ................................................................................... 42
SCEM – Supply Chain Event Management ....................................................................... 42
WMS – Warehouse Management System ....................................................................... 43
TMS – Transport Management System ............................................................................ 44
T&T – Track & Trace System ............................................................................................ 44
3. AIDT .............................................................................................................................. 45
Introduction ..................................................................................................................... 45
RFID ................................................................................................................................. 45
Voice Picking .................................................................................................................... 46
Smart Glasses................................................................................................................... 46
4. Building a Digital Supply Chain...................................................................................... 46
What & Why .................................................................................................................... 46
8 Key Elements of a DSC .................................................................................................. 47
Technologic Building Blocks ............................................................................................. 48
Chapter 4: eCommerce ............................................................................................................... 51
2|Page
, 1. Facts & Figures.............................................................................................................. 51
2. eCommerce Mechanisms ............................................................................................. 54
eCommerce Value Chain .................................................................................................. 54
The Influence of Social Media .......................................................................................... 55
Long Tail........................................................................................................................... 55
Multi-Channel vs. Cross-Channel ..................................................................................... 56
Customer Service ............................................................................................................. 57
3. Amazon Case ................................................................................................................ 57
4. Zoom on Asia ................................................................................................................ 58
The Great Firewall............................................................................................................ 58
Why Asia, not America? ................................................................................................... 58
The power of WeChat ...................................................................................................... 59
Focus on defining your online future ............................................................................... 59
Alibaba’s global expansion............................................................................................... 59
Focus on India .................................................................................................................. 60
5. Top 10 Trends ............................................................................................................... 60
The fast dominate the slow ............................................................................................. 60
V-Commerce .................................................................................................................... 61
Augmented and Virtual Reality ........................................................................................ 61
Online and Offline hand in hand ...................................................................................... 61
AI & Personalization......................................................................................................... 62
Social Commerce & Photo Shopping ............................................................................... 62
The rise of Ethical eCommerce ........................................................................................ 63
Luxury, Furniture & spare parts ....................................................................................... 63
In-Car-Commerce............................................................................................................. 64
The battle for your payment transaction ......................................................................... 64
6. Supply Chain ................................................................................................................. 64
Chapter 5: Outsourcing ............................................................................................................... 67
1. Introduction .................................................................................................................. 67
2. Definitions .................................................................................................................... 67
Core Competence ............................................................................................................ 67
Outsourcing ..................................................................................................................... 68
Insourcing ........................................................................................................................ 68
Offshoring ........................................................................................................................ 68
3PL vs. 4PL ....................................................................................................................... 68
Virtual Organization ......................................................................................................... 69
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