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This Paper has won Third Prize in "Opsyrus 2005", the CoolAvenues.com - OIG (IIM Lucknow) Paper Writing Competition held in October 2005.

EXECUTIVE SUMMARY

The end of the last millennium and the beginning of the new millennium has seen supply chain management emerge as a new management paradigm and a source of competitive advantage. This is especially true in a global marketplace where "getting the right goods at the right place at the right time and at the right cost" is imperative.
It is essential for firms to develop an understanding of supply chain management issues, opportunities and problems in a global context. It is important to keep in mind the various cultural and distribution nuances existing around the world, together with the macro-economic and country specific factors while designing a global supply chain and when developing global solutions. This article begins by defining global supply chain management and the drivers of globalization. These two concepts form the basis of understanding the reason behind envisaging the need for an efficient global supply chain.

With increased globalization and offshore sourcing, global supply chain management is becoming an important issue for many businesses. Like traditional, supply chain management, the underlying factors behind the trend are reducing the costs of procurement and decreasing the risks related to purchasing activities. The big difference is that global supply chain management involves a company's worldwide interests and suppliers rather than simply a local or national orientation.

Traditionally, the global supply chain has not been considered the domain of the treasurer. But within the increasingly complex business environment that is the hallmark of globalization, the supply chain stands front and center among the treasurer's concerns.

The strategy and issues regarding the development of supply chain in discussed in the paper. Further, the GSCM framework is discussed which involves the strategy, structure, function and implementation as its key elements.

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* Contributed by -
Ashwani Singh, PGDIE XXXIV,
Karuna Ladoti, PGDIE XXXV,
NITIE, Mumbai.