Benefits of Global Operations
Reduce Direct and Indirect Costs Reduce Capital Cost Reduce Taxes
Reduce Logistics Costs Overcome Tariff Barriers
Provide Better Customer Service Spread Foreign Exchange Risk Build Alternative Supply Sources Preempt Potential Competitors Learn from:
Local Suppliers/Customers/Competitors/Foreign Rearch Centers
Attract Talent Globally
Tangible
Intangible
Offshoring Opportunities
Source: Offshoring and Beyond, McKiny Quarterly, 2003
Changing Conditions
z Need to treat foreign facilities or activity centers as sources of competitive advantage {Trade pacts, reduction of tariffs
z Lower need to t up foreign factories to overcome trade barriers
{Incread manufacturing/rvice sophistication z Less emphasis on low wages
{Pressure to create faster transfer of ideas from development to delivery
z Need for clor inter-functional relationships
Upgrading the Strategic Role
z Focus on intangible benefits
{e.g. learning from local suppliers, gaining experience
z Cultivate competencies
{Improve the inside
{Develop external resources {Take a global mandate
z Create a robust network
{Can absorb impacts of changes in the environment
z Plan for long-term commitment
Paths to Higher Strategic Roles
Types of Product or Service Factories
z Offshore product or rvice factory
{Minimum tup investments, low-cost production z Source product or rvice factory
{Broader strategic role, greater local control z Server product or rvice factory
{Set up to offt costs (taxes, duties) and risk (FOREX)
z Contributor product or rvice factory
{Separate functions (R&D), more responsibilities z Outpost product or rvice factory {Primary role: information collection z Lead product or rvice factory
{Creates new process, products, and technologies
Sourcing Strategy Five Themes
扬州留学
z Historical and Current Frameworks of Sourcing
z Global Outsourcing
z Supplier Relationships
z Supplier Development
z Advances in Sourcing –Practices and Tools
Historical and Current Frameworks in Sourcing
Theme 1
Profit
Margin Inbound
Logistics
bas(raw
materials
handling
and
warehous-
ing)
Operations
(machining,
asmbling,
testing
Outbound
Logistics
(warehousing
and
distribution工程造价审计
of finished
product)
P
r
i
m
a
r
y
A
c
t
i
v
i
t
i
e
s Marketing
and Sales
(advertising,
promotion,
pricing,
channel
hinirelations)
S
u
p
p
npr newso
r
t
A
c
t
i
v
i
t
i
e
s
Service
(installation
repair,
parts)
Procurement
(purchasing of raw materials, machines, supplies)
Technology Development
(R & D, product and process improvement)
Human Resources Management
(recruiting, training, development)
Firm Infrastructure
(general management, accounting, finance, strategic planning)
PORTER’S MODEL
Source: Porter (1980)
Disintegrated Supply Chain
Information, Product, Service and Financial Flows M
A
T
E
R
I
A
L
S E N D C U S T O M E R S
INTERNAL ENTERPRISE
Procurement
and Manufacturing Integration Distribution
and Marketing Integration
The Great Divide
Source: Global Benchmarking and Supply Chain Project -MSU
Internal Integration
Information, Product, Service and Financial Flows
E
N
D
C
U
S
T
O
M
E
R
S M
A
T
E
R
I
A
L
S
northward
INTERNAL
ENTERPRISE
Sourcing
Operations
Logistics
Source: Global Benchmarking and Supply Chain Project -MSU
SUPPLIER NETW ORK
INTEGRATED ENTERPRISE
DISTRIBUTIVE NETW ORK
Information, Product, Service, Financial and Knowledge Flows
M A T E R I A L S
Relationship Management
E N D C U S T O M E R S
Enterpri Extension
Source: Global Benchmarking and Supply Chain Project -MSU Stages of Global Sourcing Evolution*
IV-Fully Integrated Supply Chains
II -Moderate Development
I -Basic Beginnings
III -Limited Integration
Quality/cost teams
Longer -term contracts Volume leveraging Supply ba consolidation
Ad hoc supplier alliances Cross-functional
sourcing teams International sourcing
Cross-location sourcing teams
Global sourcing Strategic supplier alliances Supplier development Total cost of ownership
Parts/rvice standardization Early supplier involvement
Global supply chains with
青鸟培训学校external customer focus
Cross-enterpri decision making Full rvice suppliers
Early sourcing Insourcing/ outsourcing to maximize core competencies of firms throughout the supply chain
* Adapted from Monczka et al (2000)
Global Outsourcing Principles
Theme 2
Factors affecting Global Outsourcing Decisions
z Comparative Advantage-low price contracts;z Hassles in manufacturing –If can not be made
in-hou outsource
z Decisions are made about individual parts
rather than product families
Result of wrong outsourcing strategy
z Lost Focus-Companies are trying to catch up
with small manufacturers in cost and quality;z Companies are manufacturing commodity
products to achieve economies of scale; and z Erosion in capability or core competency of the
company.
Reasons for wrong outsourcing decisions
z Lack of coordination between different functions,
inconsistent priorities and lack of accountability;z Manufacturers fear long contracts/relationship
would increa the bargaining power of suppliers;z Managers lack of focus. They suffer from “Do it all
here ”attitude;
z Companies had no analytical tool to
distinguishing core parts from commodities; and z Capacity & Labor issues-Capacity utilization and
labor efficiency.
Outsourcing Model
Bad on the following three main principles:
z Focus on critical components and core competency;
z Outsource components where suppliers have distinct competitive advantage; and
z U outsourcing to generate employee commitment and improve productivity.Supplier Relationships
Theme 3
Kieretsu
z A complex network of Japane firms which pursues sourcing (goods, rvices & finances) from within the
network
z Characteristics of a typical kieretsu
{Several large firms like a major bank, trading company, chemical firm, steel unit, automobile industry etc {Cross-holding, favoritism, long-term relationship & interlocking directorates Evolution of Kieretsu
z Article compares the different approaches to Kieretsu by Matsushita, Hitachi and Toyota
z Additional article –HBR article on Chrysler’s experience with Kieretsu
Interesting updates
z The collap of the powerful Mitsubishi Kieretsu
z Nissan comes out of heavy loss and survival uncertainty when Carlos Ghosn takes charge and breaks the Kieretsu
model Supplier Development
Theme 4
Steps to Effective Supplier Development
z Identify critical commodities
z Identify critical suppliers
z Form a cross-functional team (internally) z Meet with suppliers’top management
z Identify key projects
z Define details of projects
z Monitor status and modify strategies Pitfalls
z Bad on 200 companies with 83 actually responding in a variety of industries.
z Pitfalls generally occur in the last 3 or 4 steps.
z Three types of pitfalls
{Supplier-specific
{Buyer-specific
{Buyer-supplier interface
Advances in Sourcing : Practices and Tools
Theme 5
Key Sourcing Process and Associative Tools
Supplier
Scoring
And Asssment
Supplier
Selection
And
Contract
Negotiation
Design
Collaboration
Procurement
女孩你该知道的事
Sourcing
Planning
And
热门专业排名前十名Analysis
Supplier Scorecards
Total Cost of Ownership
Target Costing
Value Analysis/
Value Engg.
E-catalogs
Online market places
Rever auctions
Spend Analysis
Supplier Relationship
Management (SRM)
Sourcing Process
z Supplier Scoring and Asssment z Supplier Selection and Contracts
z Design Collaboration
z The Procurement Process
z Sourcing Planning and Analysis The Role of Sourcing
in a Supply Chain
z Sourcing is the t of business process
required to purcha goods and rvices
z Sourcing process include:
{Supplier scoring and asssment
{Supplier lection and contract
negotiation
{Design collaboration
新年贺岁片{Procurement
{Sourcing planning and analysis
