Global Logistics Strategy (L6M10)

1.0  Understand the strategic logistical implications of globalisation

1.1  Evaluate the logistics challenges that globalisation presents

• Consequences for inventory handling and transport such as:
• Centralised vs. regionalised inventory holdings
• International logistics practices – storage and handling practices
• Extended transportation pipelines and time tomarket – obsolesce and inventory holding costs
• Global consolidation
• Economies of scale and batching
• Price and currency fluctuation
• Multiple freight modes and cost
• Location analysis
• Trade-offs between responsiveness to local markets and economies of scale

1.2 Assess the structure of a global strategic logistics and supply chain network

• Layering and tiering
• Information flow and coordination
• 3 and 4PL
• Influence of Original Equipment Manufacturers (OEM)
• Time horizons – preparation, finalisation, shipment and delivery
• Individual plants
• Changing role of distribution centres
• Flexibility to respond to local markets
• Response to governmental incentives – adjusting taxes, incentives and infrastructure to favour selection
• Reconfiguration processes
• Changing the global pipeline
• Local vs. global postponed manufacturing

1.3 Assess the strategic logistical risks of globalisation and the associated responses

• Supply chain volatility:
• Geopolitical threats
• Transportation and/or pipeline breakdowns
• Security threats
• Responses such as:
• Inventory policies and levels
• Transport network redesign
• Sole vs. global trading arrangements
• Contingency planning and risk protocols

2.0  Understand global governance of the supply chain

2.1  Contrast the strategic influences on globalised supply chain governance

• Geographical spread and supply chain/network complexity
• Coordination between units and elements of the supply chain/network
• Embedded teams vs. virtual centralisation
• ‘Decentralised centralisation’ - central reporting andworking but not centrally co-located
• Incorporating new regions into global governance
• The flow of goods vs. the flow of ownership

2.2 Assess the impact of international legislation on the globalised supply chain

• The role of international courts in deciding precedence
• Which legal system is generally accepted by all parties – multiple countries passed through during the course of the trade
• Which court has jurisdiction over form of contract, disputes, underperformance etc. – exporter, importer or third country
• Legal considerations in global markets, shipment, insurance, handling, clearance, payment and other related matters

3.0  Understand the concept of reverse logistics and its impact on global logistics strategy

3.1  Assess the concept and requirements of reverse logistics

• What is reverse logistics
• Waste reduction
• Point of consumption back to point of origin
• Why is the concept becoming more influential:
• Product returns
• Repairs and maintenance
• Reuse
• End of life returns and recycling or dismantling

3.2 Assess the strategic factors which influence reverse logistics

• Government policy and legislation
• Economic considerations
• Increasing landfill costs
• Increasing cost of disposal vs. profit from recoverable manufacturing
• Environmental considerations
• Triple bottom line and sustainability
• Corporate Social Responsibility
• Green logistics
• Buying sets of services
• E.g. include maintenance contract covering repairs and parts – return of broken products and take back at life-end

3.3 Contrast factors that influence strategic reverse logistics

• External factors such as:
• Legislation
• Customer demand
• Incentives
• Internal factors such as:
• Environmental concerns
• Strategic cost/benefits
• Volume and quality returns
• Resource
• Integration and coordination

3.4 Compare factors which affect the implementation of reverse logistics strategy

• No infrastructure and insufficient resources
• Difficult to forecast flow and composition
• Not a priority
• Driven by legislation and not identified business value
• Regarded as an additional cost
• Unpopular as regarded as a sign of failure

Select a module below for more information:

Choose three ELECTIVE module to make up the final 18 remaining credits.