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

This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, redistribution , reselling , loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up to date. The accuracy of any instructions, formulae and drug doses should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of this material. 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. 1. Introduction In recent years, there has been an increasing interest in supply chain management in both research and industry. In an operations management context, the supply chain perspective basically implies to expand the focus from internal operations in a single site/ company to operations in a multi-site supply network. The main idea is to optimise supply chain operations in order to improve the overall performance. For manufacturing planning and control (MPC), the supply chain perspective imposes challenges regarding coordination and integration (Vollmann et al. 2005). Lack of information sharing and transparency is often recognised as a key issue for companies that seek to increase coordination and integration in their supply chains. A highly transparent supply chain, where relevant information can be accessed in real time, can ensure that decision making and execution are consistent throughout the supply chain (Strandhagen et al. 2006). A few attempts have been …