Bachelor 2020/2021

Global Supply Chain Management

Type: Elective course (Logistics and Supply Chain Management)

Area of studies: Management

Delivered by: Department of Operations Management and Logistics

Where: Graduate School of Business

When: 3 year, 3 module

Mode of studies: offline

Instructors: Alexander Demin, Anastasia Ivanova

Language: English

ECTS credits: 3

Contact hours: 30

Course Syllabus

Abstract

Global Supply Chain Management course develops the basic knowledge of SCM in relation to multinational companies operating in a global market. Multinational companies (hereinafter reffered to as MNCs) have sufficient power to build its own supply chains. By doing this, multiple decisions have to be made: different local markets should be assessed, logistics operations should be adjusted to the customer needs, then both infrastructure and business processes should fit the MNC's mission, value proposition and target audience. Besides mentioned above, trade-offs between suppliers' closeness, total costs and quallity should be found. Greater capabilities raise greater responsibility for the right decision making, so this course is aimed to provide required frameworks for decision making process in a global supply chains.

Learning Objectives

• The course intends to make the students familiar with the peculiarities of leading global supply chains in the contexts of cultural differentiations.
• During the learning process, students will gain the ability to make carefully-weighted decisions connected with logistics in multinational companies. Both the process of globalization and national identity will be balanced in the operations (including logistics one) of MNCs in the different target markets taking into account quality and service of the company.

Expected Learning Outcomes

• Describes and makes judgments about supply chain management external factors
• Visualizes supply chain models
• Defines key requirements for supply chain counterparts
• Adjust supply chain decisions to the customers needs
• Evaluates cultural differences and suggest cultural congruence methods

Course Contents

• Global context of supply chain management. External factors of managing supply chain.
  Multinational corporation (MNC) as a focal company in a global supply chain. Interconnection of global supply chain (GSC) and global supply chain management (GSCM). Topicality of global supply chain management studies. The essence of MNC. Peculiarities of MNCs: regional identity and / or global context. The structure of global supply chain. Environmental factors, their classification. Drivers of globalization in various economic sectors. Drivers influencing sourcing, operations, logistics and distribution in GSCs. Methodology for assessing supply chain management (SCM) development in the regions of the world. EPIC model: Economics, Politics, Infrastructure, Competencies. Structure of EPIC model. Components of supply chain maturity level assessment. Preliminary data and applicability of EPIC model to solve SCM issues. EPIC model indicators for Russia and other countries. Logistics Performance Index (LPI) model: basic principles and components of LPI-definition. Evaluation of supply chain strengths and weaknesses in Russia using various models for structuring environmental factors. Value chains of MNCs. Main factors of location for the value chain stages in GSC. Examples of geographical distribution of value chain stages.
• Global supply chain network. Infrastructure of global supply chains.
  Infrastructure facilities in a global supply chain. The network structure of building global supply chains. Global production networks (GPN): prerequisites for creation, its essence, key features. Motives of global production network creation. GPN 1.0, GPN 2.0. Global supply chains in terms of value chain: the role of GPN in setting up GSC. Tasks and subtasks of designing GPN. Strategic, tactical and operational tasks during GPN creation. Model for GPN design and use. MNC management structures. Place and role of logistics department or SCM department in MNC: tasks at the divisional and headquarters levels. Level of centralisation for logistics or SCM functions in departments of MNC. Development of organizational structure to lead company in the process of its globalization. The main conflicts specific to MNCs, role of SCM department in their resolution. Differences in European, American and Japanese MNCs creation. Identification of key business processes in GSCs: The Global Supply Chain Forum model in GSCs of MNCs. Areas of interaction between business partners in GSCs. Comparison of models to replicate MNC business processes in the case of entering a new market. Factors of choosing a model to spread MNC business processes. Adjustment of MNC business processes to features of local management.
• Global supply chain markets. Logistics support of global marketing decisions.
  The client as the main investor in a global supply chain. Strategic marketing solutions in GSCs. Criteria of market segmentation: specifics of choosing segmentation criteria for both B2B and B2C markets, role of customer segmentation in logistics solutions implementation. Place of SCM in “Three values” model. Characteristics and purpose of strategic canvas concept to develop logistics solutions in GSCs. Competitive advantages in GSCs. Impact of customer base characteristics on supply chain management. MNC supply chains in Base-of-Pyramid markets, in Muslim countries. Indicators for marketing solution effectiveness evaluation. Application of marketing indicators in GSCs.
• Cultural intelligence in global supply chain management. Role of national culture in SCM.
  Cultural intelligence: its types and forms, methods to improve. Impact of cultural intelligence on MNC supply chain efficiency. Trust and corporate social responsibility (CSR). CSR practices in supply chains of different companies. Trust in supply chains: ways to build cultural congruence, managerial behaviour to foster trust in supply chain. National culture as a factor in managing GSCs. Concept of national culture. Role and significance of national culture in MNC supply chains. Influence of cultural factors on competitiveness of MNCs. National culture classification on the base of Hofstede measurements and indicators used in GLOBE project. Monoactive, polyactive and reactive national cultures. Application of results gained in the research of Prof. Hofstede and GLOBE project to SCM - Supply Chain Human Performance model. System of motivation for specialists of logistics or SCM department in MNC. Influence of national culture on supply chain management. Role of national culture at a negotiation process in GSCs of MNCs. Value of relationship between counterparties in supply chains of MNCs. Operational roles and rights of counterparties in supply chains of MNCs. Foundations for mutual trust in MNC supply chains. Ways of resolving conflicts between participants in MNC supply chains. Competitive advantages in GSCs. Influence of national culture on customer preferences, on integration practices applied in supply chains, and on relationships with suppliers. Cultural characteristics of counterparties in a supply chain. Developing supplier relationship practices. Development of customer service practices.
• Global supply chain development. Entering new markets with less obstacles.
  Conceptual model for global supply chain development. Procedure for entering and developing new markets for MNCs. Transforming market information into key success factors and competitive advantages. Selection of key counterparties in a supply chain. Establishment of supply chain structure according to the object principle. Establishment of supply chain structure according to the process principle. Models for assessing the economic efficiency of MNCs. Evaluation influence of logistics decisions on profitability of MNCs applying various economic models.

Assessment Elements

• Practice work
  3 short pieces of practice work has to be done on or right after the lecture sessions. Each task is graded in 10 points. Average grade substitutes then in the formula
• Presentation 1. A context of the global supply chain management
  1. Presentations is divided between two workshops (2nd and 3rd). Three main parts are required in presentation: key points of MNC development in modern world, their profit and non-profit goals, using (as recommendation) their annual reviews or other open-access forms; the global economic and geographical challenges company is faced (Oxford Economic Geography Handbook as a recommended literature); local pecularities of some market supply chain and logistics development level (EPIC model and LPI as a basis). Analysis and connections between all of three parts should be provided // 2. Oral presentation is partially peer-assessed
• Presentation 2. Key decisions of global supply chain management
  1. Each formed team evaluates the main decision of their final project and presents it to the audience. The ultimate goal is to receive productive criticism from colleagues to adjust their project. // 2. Presentation requires deep dive into one of the supply chain strategic planning decisions (namely, sourcing, inventory management, production and distribution planning, informational support, marketing, supply chain transportation, geographical spread of supply chain network), and gives the opportunity to convince in this decision orally. // 3. Since the presentation describes management decisions, responsible managers needs to be defined - organizational chart analysis and development is highly recommended. // 4. Oral presentation is partially peer-assessed
• Role play. Intercultural communication in SCM
  Role play takes place in group of 3 students (if online - turning camera on is required). Suggested plan is communication between two members of the team with the comments of the third member, regarding key points of congruence and mutual changing of attitude to find out the best possible solution
• Written asynchronous exam
  Final project has to be done in form of informative PowerPoint presentation, combining all the key course topics. Students needs to choose MNC and their target market, suggest how to cope with the local and global challenges that MNC faces, define target audience and adjust logistics operations to suite it, suggest key requirements for counterparties and infractructure facilities, development the organizational chart and the possible ways of cultural congruence. Defining each team member sphere of responsibility is required, as the final mark will be individual.
• Lecture and workshop activity

Interim Assessment

• Interim assessment (3 module)
  0.1 * Lecture and workshop activity + 0.1 * Practice work + 0.1 * Presentation 1. A context of the global supply chain management + 0.15 * Presentation 2. Key decisions of global supply chain management + 0.05 * Role play. Intercultural communication in SCM + 0.5 * Written asynchronous exam

Bibliography

Recommended Core Bibliography

• Clark, G., Feldman, M., Gertler, M. and Wójcik, D. The New Oxford Handbook of Economic Geography. - Oxford, UK. - 859 p.
• Cultures and Organizations, Software of the mind. Intercultural Cooperation and Its Importance for survival. (2010). McGraw-Hill. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.library.wur.nl.wurpubs.392270
• John Gattorna. (2016). Gower Handbook of Supply Chain Management: Vol. 5th edition. Routledge.

Recommended Additional Bibliography

• Anna Trzuskawska-Grzesińska. (2017). Control Towers in Supply Chain Management - Past and Future. Journal of Economics & Management / University of Economics in Katowice, 5(27), 114–133. https://doi.org/10.22367/jem.2017.27.07
• Kim, W. Chan, Mauborgne, R. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Press. 2005
• Lewis, R. D. (2006). When Cultures Collide : Leading Across Cultures 4th Edition (Vol. 3rd ed). Boston: Nicholas Brealey. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=160054
• Mahapatra, S., William, W. S., & Padhy, R. (2019). Alignment in the Base of the Pyramid Producer Supply Chains: The Case of the Handloom Sector in Odisha, India. Journal of Business Logistics, 40(2), 126–144. https://doi.org/10.1111/jbl.12211
• Pal, R., & Altay, N. (2019). Identifying Key Success Factors for Social Enterprises Serving Base‐of‐Pyramid Markets through Analysis of Value Chain Complexities. Journal of Business Logistics, 40(2), 161–179. https://doi.org/10.1111/jbl.12212