Supply Chain Challenges Ijaz Yusuf Director Center for

Supply Chain Challenges Ijaz Yusuf Director Center for Supply Chain Research School of Business and Economics University of Management and Technology, Lahore Email: director. cscr@umt. edu. pk Ijaz_yusuf 2002@yahoo. com Cell: 03054440603 , 0333 -4302970

Center for Supply Chain Research (CSCR) Supply Chain Forum q Awareness Sessions q e-newsletter q Concept Offerings q MS / M Phil. in Supply Chain Management q Research Funded Projects q

Logistical Performance Index (LPI) Int LPI Rank 1 Country Germany LPI Customs Infrastructure International Shipments Logistics Competence Trackin g and tracing Timeliness 4. 11 4. 00 4. 34 3. 66 4. 14 4. 18 4. 48 7 Japan 3. 97 3. 79 4. 19 3. 55 4. 00 4. 13 4. 26 15 USA 3. 86 3. 68 4. 15 3. 21 3. 92 4. 17 4. 19 27 China 3. 49 3. 16 3. 54 3. 31 3. 49 3. 55 3. 91 39 Malaysia 3. 44 3. 11 3. 50 3. 34 3. 32 3. 86 47 India 3. 12 2. 70 2. 91 3. 13 3. 16 3. 14 3. 61 79 Bangladesh 2. 74 2. 33 2. 49 2. 99 2. 44 2. 64 3. 46 110 Pakistan 2. 53 2. 05 2. 08 2. 91 2. 28 2. 64 3. 08 155 Somalia 1. 34 1. 33 1. 50 1. 33 1. 17 1. 38 Email: director. cscr@umt. edu. pk Cell: 03054440603

Stakeholders of LPI q Government q. Customs (Laws, SRO, Duties, Levies etc) q. Infrastructure (Road Density, Ports, etc) q. Implicit (Exchange Rate, Political Stability, Good Governance) q Academia q. Tracking and Tracing (Systems, IT, Products etc) q. Timeliness (Systems, Attitude, Behaviour etc) q. Logistics Competence (Systems, KPI, LPI etc) q Corporate World

Linkages among Govt, Academia & Corporate World Internatio nal Shipments Tracking and Tracing Infrastruc ture Timeliness Logistics Compete nce Customs Email: director. cscr@umt. edu. pk Cell: 03054440603

Types of Challenges Implicit Challenges Explicit Challenges

Implicit Challenges Customer Focus On time delivery Quality as per agreed specifications Collaboration Win-Win Approach Supplier / Partnership Relationship Cost Control

Explicit Challenges Innovation and Creativity Globalization Supply Chain Volatility Risk Management JIT Inventory Searching for Working Capital Intellectual Property Interchange Standardization Global Eye for Consumer Product Safety Resurgence of LOC Shortening Cycle Time

Innovation and Creativity Quality Circles Idea Boxes Kaizen Teams Kaizen Blitz Small Group Activities Out of Box Thinking Awards Process Improvement Teams Email: director. cscr@umt. edu. pk Cell: 03054440603

Globalization Ø Know the cultures, languages, laws, customs Ø Learn to optimize beyond the corporate and supply chain spheres of influence Ø Exploit global efficiencies Ø Optimize pipeline inventory, the global supply chain network and cost structures. Ø Create cost-efficient sustainable products. Email: director. cscr@umt. edu. pk Cell: 03054440603

Supply Chain Volatility Ø Oscillatory waveform of exchange rate Ø Market transparency Ø Fluctuating price sensitivity Level Ø Affect of Global commodities Ø Absence of price regulatory bodies Email: director. cscr@umt. edu. pk Cell: 03054440603

Risk Management Ø Risk and opportunity management should span the entire supply chain Ø---From demand planning to expansion of manufacturing capacity Ø--- Cash Coverage Ø--- Disruption of Quality Ø--- Financial uncertainties of the partner Email: director. cscr@umt. edu. pk Cell: 03054440603

JIT Inventories Ø JIT inventory is the result of ØJIT Mindset ØInformation integration ØCo-ordination ØResource sharing ØOrganizational relationship linkages Email: director. cscr@umt. edu. pk Cell: 03054440603

Searching for Working Capital Ø Buyers look to extend their payment terms whereas suppliers want receive- able quickly to manage the supply chain finance. Ø To look their trade flows to derive to create additional liquidity Ø To mitigate the brewing payables/receivables conflict Email: director. cscr@umt. edu. pk Cell: 03054440603

Intellectual Property Interchange Standardization o Establish standards for generalized and industry specific solutions o Design and develop taxonomies, terms, technical jargon and semantics generalized and industry specific o Need standardized syntax and schemes for expressing and interchanging intellectual property and another business information Email: director. cscr@umt. edu. pk Cell: 03054440603

Global Eye for Consumer Product Safety o Establish safety standards and regulations especially for children products o In November 2008, representatives from China, the European Union and the United States met in Brussels for the first high-level trilateral summit on product safety to discuss key developments and further joint activities to improve cooperation and the exchange of information relating to consumer product safety. for generalized and industry specific solutions Email: director. cscr@umt. edu. pk Cell: 03054440603

Resurgence in letter of Credit Reviving the use of letters of credit to facilitate the financing of international trade. With credit getting tighter in all sectors, the supply of letters of credit have been declining while the cost has risen dramatically q For the right borrower and the right transaction there are still deals to be done, but the market will remain tight for the near future. ".

Shortening the Supply Chain Cycle Time Manufacturing will continue to reconfigure their supply chain by moving operations and sourcing points near to customer’s warehouse Email: director. cscr@umt. edu. pk Cell: 03054440603

Thanks for lending your ears