Coyle_Chapter_3_PowerPoint_Slides - Chapter 3 Global...

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Chapter 3 Global Dimensions of Supply Chains Learning Objectives ¨ After reading this chapter, you should be able to do the following: n Describe the scope of a global company’s supply chain network and understand what questions are appropriate for the network to function on a competitive basis. n Understand the three major phases of globalization. n Appreciate the complexity and magnitude of the operations of some successful global companies and why global expansion is important to their growth. n Explain how technology and service specialists can help companies, especially small- to medium-size firms, penetrate the global marketplace.
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Learning Objectives (cont.) ¨ After reading this chapter, you should be able to do the following: n Appreciate the importance and magnitude of the trading partner countries of the United States. n Understand the nature of global markets and competitive strategy. n Explain the rationale for global security measures and the balance necessary to ensure that such security measures do not impede trade. n Discuss global transportation options and strategic intermediaries.
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Three eras of globalization ¨ The first era was initially driven by countries (1400– 1800) seeking materials and goods not available in their own land ¨ The second era of globalization (1800–2000) was driven by companies seeking goods and materials, labor, economies of scale, and markets. ¨ In the third era of globalization, said to have begun around the year 2000, the significant characteristic is that it is being powered by individuals and smaller organizations
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Supply Chains in a Global Economy ¨ Economies and companies could improve their “wealth” by allowing specialization of tasks. ¨ The advantage is true as long as you can sell the increased volume that is produced. It is an important role of logistics to help extend the market area of countries or companies through improved efficiency to lower the “landed cost” in new market areas.
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The Scope and Magnitude of Global Business ¨ The ability to connect to individuals and companies across the globe and to connect computer information systems on a 24/7 basis has provided unparalleled opportunity for collaboration horizontally and vertically in supply chains. ¨ The trade volume with China was 18.2 percent of the total of the top 10 for 2006, and it increased its trade volume by 20 percent from 2005 to 2006. In 2000, China was number 4 following Canada, Mexico, and Japan.
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Rank Country Exports (Year-to- Date) Imports (Year-to- Date) Total Trade (Year-to-Date) Percent of Total Trade --- Total, All Countries 1,210.7 1,961.9 3,172.7 100.0% --- Total, Top 15 Countries 830.6 1,423.6 2,254.2 71.1% 1 Canada 244.5 315.9 560.4 17.7% 2 China 66.3 312.7 379.0 11.9% 3 Mexico 141.4 201.7 343.0 10.8% 4 Japan 62.0 129.4 191.5 6.0% 5 Federal Republic of Germany 50.8 90.4 141.3 4.5% 6 United Kingdom 50.2 54.7 104.9 3.3% 7 Korea, South 32.9 44.8 77.7 2.5% 8 France 26.9 40.6 67.5 2.1% 9 Saudi Arabia 11.2
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This note was uploaded on 06/01/2009 for the course FIN 301 taught by Professor Andelin,stevenle during the Spring '07 term at Pennsylvania State University, University Park.

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Coyle_Chapter_3_PowerPoint_Slides - Chapter 3 Global...

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