Episode10PPTSlidesVideo

Episode10PPTSlidesVideo - Episode 10 Global Operations I...

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Episode 10 Global Operations I
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Global Operations – Key Questions Where do all the products we purchase originate? How can companies make money on low cost products produced in far off places? Why do companies source and manufacture goods offshore? 2
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Part 1 Foundation Concepts
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Why focus on global trade and operations? 4 • Global trade continues to grow at impressive rates – 8% in 2006. • To ignore the continuing upward trend is to limit your potential and future options
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What’s Driving Globalization? Greater accessibility to larger customer and supply bases elimination of trade barriers international trading blocs Travel, Internet, and telecommunications Growth opportunities are abroad $1.84 trillion in U.S. exports (2008) expanding income in emerging countries Influx of foreign goods $2.52 trillion in U.S. imports (2008) expanding capabilities of emerging countries Global mergers and acquisitions
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What’s the impact of the freer flow of trade and investment across borders? Integration of the international economy leads to… Expansion of economic freedom Greater product choice and options Spurs competition Focus on improved productivity Raises the standard of living in countries that participate in the global marketplace Greater productivity = lower cost of goods 6
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Why is SCM a critical issue in global trade? 7 The growth of international trade in higher value, time sensitive finished goods requires stronger SCM capabilities
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What is the focus of global SCM? Global SCM - the design and management of a supply chains that control the flows of materials, money, and information into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost Goal - better, faster, cheaper on a global scale Requires additional planning, increases purchasing & production options, but makes 8
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How does global SCM differ from domestic SCM? As companies move from national to global operations, supply chain size and complexity grows dramatically Traditional challenges Language Currency issues Regulation Security 9 KEY FORCES Politics
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How does global SCM differ from domestic SCM? Global networks are more complicated Multiple participants Factory DC Representative National National Supply Chain Multinational Supply Chain Simple Complex High-volume DC
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How does global SCM differ from domestic SCM? Global logistics operations are more challenging Extensive product handling Shipment visibility issues 11 Seller Domestic Carrier Buyer Domestic Exporter Bank Customs Domestic Carrier International Carrier Customs Importer Domestic Carrier Bank Forwarder Broker Global
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How does globalization impact SC operations?
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What are the costs of global SCM? „05 Global logistics spending = $ 3.5 trillion USD
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Episode10PPTSlidesVideo - Episode 10 Global Operations I...

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