BSB119 Lecture Notes - Reverse Logistics, Iso 9000, Vertical Integration
Document Summary
With a shift towards globalisation of production, firms increasingly source goods and services from various locations to take advantage of national differences in cost and quality of various factors of production. Has resulted in the creation of complex global supply networks for the distribution of finished products and for the inbound supply of raw materials and components. Strategic objectives in global operations management: lowering costs while raising efficiency (maximise productivity, increase quality, reduce waste) Can be achieved by dispersing production activities to various locations which are able to perform the activity more efficiently. Manage the global supply chain efficiently better match supply and demand. Increases inventory turnover and decreases inventory write offs: responding to customer demands and satisfying customer needs need to be flexible and efficient, the aim is to control the costs of production while ensuring timely delivery. Additional international logistics challenges: geographical distances, different regulatory requirements: pricing, packaging, safety, documentation.
