1 MASTER COURSE:...: Mestrado Profissional em Gestão Internacional (MPGI) COURSE : International Supply Chain Management PROFESSOR...: Susana C. Farias Pereira I - COURSE OVERVIEW PROGRAM Supply chain management has emerged as the new key to productivity and competitiveness of manufacturing and service enterprises. The importance of this area is shown by a significant development in research in the last five years and also proliferation of supply chain solutions and supply chain companies. This course focuses on Supply Chain Management within the context of global and international markets. This elective course was developed to provide international business students with an opportunity to study interesting aspects of the international business environment and to improve their capacity to assess and solve international business problems. With increasing levels of internationalization and demands on efficiency and effectiveness in supply chains, the course focuses on the role of management and how international supply chain management can function as a source of competitive advantage. With a mix of teaching methods including seminars and lecturers, the course aims at introducing the student to the complex and dynamic nature of international supply chain management. The course has been designed to introduce greater realism and perspective through actual experiences with the use of case studies, site visit and lectures from practitioners. Student participation is a key element in the learning situation and your active involvement in the course is expected. In order to increase class interaction upon arrival, students will be required to read in advance literature related to the course. II - COURSE DESCRIPTION This course aims to understand the linkage between coordination of global supply chain and functional areas within a company; SCM frameworks for procurement and outsourcing as they relate to different alternatives (develop or buy); common pitfalls of inventory management and positioning in supply chains; role of product development and postponing in supply chains. III - COURSE OBJECTIVES The main objective of this course is to achieve an understanding and orientation in concepts of supply chain management and understanding and knowledge on the contemporary theoretical and practical developments in the area of international supply chain management. The course takes new developments in the field into consideration, in particular global risk management and environmental issues in supply chain.
2 This course will help students enhance their analytical, decision making and implementation skills in an intense, highly challenging project of writing an actual case on International Supply Chain Management topic. The course will place an equal emphasis on managerial and operations issues faced by firms operating in many parts of the world. This course deals with a number of important subjects that arise in the activities of companies at the transnational level. Concepts are taken from business and operations strategy, international economics and other areas of business administration, and they are used to examine empirical international business situations as well as specific company case studies. IV COURSE REQUIREMENTS ATTAINMENTS This advanced course will provide students with the opportunity to apply what they have already learned about the concepts of supply chain management to the diverse and dynamic global marketplaces. By the end of the course, the students should have an understanding of and appreciation to: 1. Recognize the forces underlying the development of international business, and the unique challenges that exist when entering the global marketplace, and how to understand and overcome them. 2. Understand and use the basic concepts of supply chain management and the contemporary theoretical and practical developments in the area of international supply chain management. 3. Understand the complex and interactive nature of participants, functions and flows of international supply chain management. 4. Handle the basic terminology and conceptual tools in international supply chain management and how these can be applied in practice. 5. Work in an international group and to have gained a sense of personal responsibility in preparation for further studies and career development. 6. A real-world perspective on how global business is conducted. V TEACHING METHODS The course is based on the following learning processes: traditional theoryliterature studies, study questions-seminar preparations in groups; a written course project with specific focus on international supply chain management with an international team working together; participation in seminars and field visits in order to achieve increased understanding of the complexity and dynamics of international supply chain management. The traditional learning is primarily based on a self-study of the literature and individual and team preparation of seminar and project work. The learning process is supported by lectures, seminars and cases discussion where both theory and practice are connected. The three learning processes will partly be running in parallel.
3 VI PERFORMANCE EVALUATION Students are required to attend at least 75% of classes. The course is examined in four parts: 1) Class participation- individual assignment (20%) - all students are expected to attend and participate in all sessions. The class participation grade will be based upon contributions during the whole course, including during case discussion. - You all will have good ideas. Those ideas are only useful to the class, or to an organization, if you communicate them. Class Participation is a fundamental feature of this course. Reading assigned material prior to classes and preparing to engage in fruitful discussion are demanded for every session. 2) Case Report group work (30%) - Case discussion Report: each group is to prepare and submit through safe assignment (e-class) a case analysis right before class. Case report should have up to two pages, time news roman 12, single space. The report should either answer proposed questions, if provided. Otherwise, give a concise statement of the major issue(s) faced by the organization and specific recommendations with supporting rationale. 2) Seminars presentation - group work (10%) - each group is to prepare a presentation to cover one of the topics presented in the program. In our first class we will decide together a schedule for presentations; - presentation should be based both literature identified and proposed by the group and on additional information (preferably practical); - presentation should be minutes long; - the use of PowerPoint is strongly encouraged. However you can include or create a video, or something else (be innovative) to make your presentation interesting. You will be evaluated based on the effectiveness, content, style, organization, delivery and professionalism of your presentation; - make sure to send me a copy of your outline for the presentation and slides before the presentation; 3) Final Project Report - group work (30%) - Consists of writing a case on any topic related to International Supply Chain Management. Each group may choose either a Brazilian company which has established an operation abroad or a foreign company which has established its operations in Brazil;
4 - should be double-spaced and pages long (including appendices). Please note that the length requirements for all the written material will be strictly enforced; 4) Presentation of Final Project individual (10%) - presentation should be 15 minutes long. - this is an opportunity to be creative with visual aids and charts. The use of PowerPoint is encouraged. However the group can create a video, or something else (be innovative) to make presentation interesting. Groups will be evaluated based on the effectiveness, content, style, organization, delivery and professionalism of presentation - every student must attend and evaluate other teams presentations. The final grade for each presentation will be an average of students and professor s grades. - every group must hand in a printed copy of Final Project Report, before presentation starts, and also send a digital copy through safe assignment before class starts. I expect this teamwork will enhance learning and be a rewarding experience for you all. However, this also requires responsibility, accountability, punctuality, team spirit and interpersonal skills. During the first class, I will define the formation of groups. You are free to pick your own group mates. Complete guidelines for writing good cases fast are provided in Leenders, Mauffette-Leenders and Erskine (2001) available at FGV Library. According to these authors, a case is a description of an actual situation, commonly involving a decision, challenge, an opportunity, a problem or an issue faced by a person or persons in an organization. Traditional type of case, which is field based and released (someone in the organization give permission to use for educational purpose), is recommend for this term project. However, another type of case, the so called armchair case when the author may not have used real life data and obtained a release, may be accepted upon request and justification by the group. VII PROGRAM CONTENTS (subject to change) Session 1: Supply Chain Concepts and Perspectives Course Introduction Correa (2014) Chapter 1
5 Session 2: Strategic Supply Chain Management Case Analysis to hand in Crocs Case Stanford G5-57 Correa, 2014 (Chapter 2) Session 3: Demand Management and Coordination in Global Supply Chain Case Analysis to hand in Game: Lab (FGV main building 5 th floor, room 506) Correa, 2014 (Chapter 8, pages 1-25 and 47-54) Session 4: Relationships in Global SC Seminar presentation Groups 1 and 2 Groups 3 and 4 Required readings: - Correa, 2014 (Chapter 3) Required readings: - Correa, 2014 (Chapter 4) Session 5: Global Sourcing Invited Lecturer To be confirmed Session 6: Global SC Risk Management and Environmental Issues in International SCM Case Analysis to hand in Mattel s Toy Recalls Case: GS-63 Wal-Mart s Sustainability Strategy - Correa, 2014 (Chapter 5) - Correa, 2014 (Chapter 11) Session 7: Plant Visit Plant Visit To be confirmed
6 Session 8: Final Project Presentation Activity Project presentation Written term Project (every group should hand in a written term project and presentation) Groups: 1, 2, 3 and 4 VIII REFERENCES AITKEN, J., CHILDERHOUSE, P., TOWILL, D. The impact of product life cycle on supply chain strategy. International Journal of Production Economics. Vol 85, pp , BALLOU, R. The evolution and future of Logistics and Supply Chain Management, European Business Review, v. 19, n. 4,pp , BARALDI, Enrico. Strategy in Industrial Networks: experiences from IKEA. California Management Review, Summer 2008, Vol 50, No. 4, Reprint Series, p , CARTER, C. R.; ROGERS, D. S. A framework of sustainable supply chain management. International journal of Phisical Distribution & Logistic Management, v. 38, n. 5, pp , 2008 COOPER, M.C., LAMBERT, D.M. E PAGH, J.D., Supply Chain Management: more than a new name for logistics. The International Journal of Logistics Management, Vol. 8, n.1, pp. 1 14, CORREA, H. Global Supply Chain Management, 2014 (ebook) Required COX, A.; LAMMING, R. Managing supply in the firm of the future. European Journal of Purchasing & Supply Chain Management, v.3, nº 2, p CHEN, I. J.; PAULRAJ, A., Towards a Theory of Supply Chain Management: The Constucts and Measurements. Journal of Operations Management, v. 22, n. 2, p , 2004 CHRISTOPHER, M., MENA, C., KHAN, O., YURT, O. Approaches to Managing Global Sourcing Risk. Supply Chain Management: an International Journal, Vol 16, Issue 2, pp 67-81, DOOLEY, K. J., YAN, T., MOHAN, S., GOPALAKRISHNAN, M. Inventory Management and the Bullwhip Effect During the Recession: evidence from the manufacturing sector. Journal of Supply Chain Management, Vol 46, No. 1, pp 12-18, ELLRAM, L. M.; COOPER, M.C. Supply Chain Management: it s all about the journey, not the destination, Journal of Supply Chain Management, v. 50, n.1, pp FEITZINGER, E.; LEE, H. L. Mass-customization at Hewlett Packard: the power of postponement. Harvard Business Review, v. 75, n. 1, pp , FISHER, M. L. What is the right supply chain for your product? Harvard Business Review, v. 75, n. 2, pp , HARLAND, C. M. Supply Chain Management: Relationships, Chains and Networks, British Journal of Management, v. 7, Special Issue, HUGHES, J. Why Tour Supplier Relationships Fail to Deliver Their True value. Harvard Business Review, March JOHNSON, E. M. Learning from Toys: lessons in managing SC risk from the toy industry. California Management Review, V. 43, N. 3, pp , KLEINDORFE, P. R., SINGHAL, K; VAN WASSENHOVE, L. N., Sustainable Operations. Production and Operations Management, v. 14, n. 4, pp , KLUYVER, C. A. de. Global Supply-Chain Management. Fundamentals of Global Strategy: a Business Model Approach. Harvard Business Publishing: Boston, 2010, chapter nine. LAMBERT, D.M. Supply Chain Management: processes, partnerships, performance. 2nd Edition. Supply Chain Management Institute: Florida, 2006 LAMBERT, D. M.; KNEMEYER, M., We re in This Together. Harvard Business Review, December 2004.
7 LEE, H. L. Aligning supply chain strategies with product uncertainties. California Management Review, v. 44, n. 3, pp , LEE, H. L.; PADMANABHAN, V.; Wang, S. The bullwhip effect in supply chains. Sloan Management Review, v. 38, n. 3, pp , LELYS, M.A.; FLYNN, B.B.; FROHLICK, M. T. All Supply Chains don t Flow through: understanding supply chain issues in product recalls. Management and Organization Review, 4:2, pp , MASSON, P.; IOSIF, L. ; MACKERRON, G.; FERNIE, J. Managing Complexity in Agile Global Fashion Industry Supply Chain. The International Journal of Logistics Management, v. 18, n. 2, pp , MENTZER, John T. et al. Defining Supply Chain Management. Journal of Business Logistics, v. 22, nº 2, p PEREZ-ALEMAM, P.; SANDILANDS, M. Building value at the top and the bottom of the global supply chain. California Management Review, v. 51, n. 1, pp , PRAHALAD, C. K. and HAMEL, G. (1990, May-June), The Core Competence of the Coorporation, Harvard Business review (79-90). RAZ, G. Introduction to Supply Chain Management. Darden Business Publishing, UV5138 ROTH, A.V., TSAY, A.A., PULLMAN, M. E., and GRAY, J.V, Unraveling the food Supply Chain: strategic insights from China and the 2007 Recalls. Journal of Supply Chain Management, Vol 44, Number 1, pp 22-39, SHEFFI, Y.; RICE JR. J. B. A supply chain view of the resilient enterprise. MIT Sloan Management Review, v. 47, n. 1, pp.41-48, SLACK, N.; LEWIS, M. Operations Strategy. Prentice Hall, SPEIER, C., WHIPPLE, J.M., CLOSS, D. J., VOSS, M. D., Global Supply Chain design considerations: mitigating product safety and security risks. Journal of Operations Management, Vol 29, pp , SRIVASTAVA, S. K., Green Supply-Chain Management: A state-of-the-art literature review. International Journal of Management Reviews, v. 9, n. 1, pp 53-80, SEURING, S. and MÜLLER, M. From a Literature Review to a Conceptual Framework for Sustainable Supply Chain Management. Journal of Cleaner Production, V. 16, pp , VAN der VAART, T.; VAN Donk, D. P., Buyer-focused Operations as a Supply chain Strategy. International Journal of Productions & Operations Management, v. 25, n. 1, pp 8-23, VAN HOEK, R.I. Reconfiguring the Supply Chain to Implement Postponed Manufacturing. The International Journal of Logistics Management, v. 9, n. 1, pp , The Rediscovery of Postponement: a literature review and directions for research. Journal of Operations Management, v. 19, pp , WISNER, J. D.; LEONG, G. K.; TAN, K. Principles of supply chain management: A balanced approach. Thomson, IX FACULTY INFORMATION Short-bio at Contacts: Tel Office at: Rua Itapeva, 474, 8th Floor Office Hours: appointments must be booked by .
8 IX APENDIX GUIDELINES FOR PREPARING A CASE Following is a guideline for term project: writing a case. Complete guidelines are provided in Leenders, Mauffette-Leenders and Erskine (2001) available at FGV Library. The Case Plan 1. The opening paragraph 2. The brief statement of teaching objectives 3. The proposed organization or outline of the finished case by subtitles 4. The data requirements list (by subtitles identifying data already available and additional data to be gathered) 5. Time plan Phases of a Case Writing Process Phase 1: - Case origin, lead and Initial Contact: the decision to write a case for a specific course; establishing what case of a case to write; searching for an organization that might supply the case; and set up the first interview. - Case Plan Preparation: based on the first interview, discussed with the professor or supervisor, refined and sent to the contact person in the organization for appraisal. - Second contact: review the case plan with the contact person, decide if it will disguise real names of organization and/or people or use actual figures, test the understanding of information given In the first interview, raises provisional release issue. - Provisional release: confirm in writing that the contributing organization makes a commitment to cooperate in providing the required information and, if the final case conforms the original plan, it will grant the final release. Phase 2: - Data collection - Case draft and preliminary teaching note - Edited case - Case release Phase 3* (NOT REQUIRED FOR THIS COURSE): - Teaching note completion - Class test - Further case and Teaching Note revision - Possible re-release *Considering time constraints and course objective, the phase three will consist of a class presentation of the case by each group. SOME POSSIBLE TOPICS FOR TERM PROJECT Some dimensions that define case quality are: the assurance that the case is original and based on carefully researched data; ability to meet the teaching
9 objective sought; ability of the data and research method used; presentation of the final product. - Quality in terms of objectives is primarily dependent on the choice of issue and the plan for the case format and content. What is currently outlined here is a first level description of some possible topics that may be considered. You can use the leads provided here and do your own search for relevant material (Journal Papers, web resources, field visits, interviews, etc) towards evolving a detailed outline for your case on the chosen topic. - Location on SC facilities: the geographic location of production facilities, stocking points, and sourcing points is an important strategic planning step in supply chain design. Once the size, number, and location of supply chain facilities are determined, so are the possible paths by which the product flows through to the final customer. These decisions have great significance since they determine the way in which customer markets are accessed and they have substantial impact on revenue, cost, and service levels. - Supply Chain Configuration: the decisions here include what products to produce, which plants to produce them in, allocation of suppliers to plants, plants to distribution centers, and distribution centers to customer markets. These decisions assume the existence of supply chain facilities but determine the exact paths through which a product flows to and from these facilities. - Procurement Planning: procurement involves multiple suppliers and a single buyer. It is a critical process in the determination of a company's serviceability and inventory. This function becomes an interesting problem if there is constrained supply and uncertain demand. Cases relating design and development of a webenabled procurement system can also be considered. - Distribution Facilities Planning: this involves determining the number, location, capacity, and layout of an optimal distribution network to maximize customer service levels given the demand distribution and other supply chain parameters. - SC Inventory: inventories exist in every stage of supply chains, as raw materials, work in process, finished goods inventory. The primary purpose of inventory is to buffer against uncertainties and to maintain acceptable customer service levels. Since inventory is expensive, maintaining optimal inventory levels in supply chain stocking points is an important problem. Economic order quantity models, statistical inventory control policies, and Multiechelon inventory management have been used in this context. - SC Risk and environmental issues - Strategic alliances and SC relationship - Others