Global supply chain control systems: a conceptual framework for the global control centre

Abstract

The operation of global supply chains is challenging due to the complexity in product and information flows, diversity in sites, localisation and processes and the information processing needed for coordination and control. In order to be competitive, manufacturing supply networks should strive to use information to create transparent and visible demand patterns and to create an efficient balance of supply and demand by an integrated and coordinated manufacturing planning and control system. In this article, a framework for developing global control centres (GCCs) is presented that includes a global control model, performance measurement system, information and communications technology (ICT) and organisation of roles and responsibilities. The framework has been further tested in a company for realising a GCC. The main challenges for realisation include control issues, information handling and ICT and management of change and organisational resistance.

Keywords:

• global supply chain control
• global operations management
• case study
• information and communications technology
• manufacturing planning and control systems

Acknowledgements

We would like to thank Freddy Johnsen, Supply Chain Manager at Mustad, for reviewing the Mustad case and for giving his reflections on the text. In addition, our former colleague Ottar Bakås and our present colleague Erik Gran at SINTEF have contributed with important knowledge and inspiration. This research was supported by grants from the Norwegian Research Council.