Global Sourcing Ppt
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Transcript of Global Sourcing Ppt
Global sourcing
Content 1. Global sourcing2. Global sourcing trends3. Global sourcing strategic 4. Excellence in global sourcing - From fringe to core business - The profit life cycle - Moving national competitive advantages
- The learning supplier
1. Global sourcing • Sourcing as a global game • Smart sourcing saves € 6-9
m for every € 1 bn turnover • Speed Sourcing of Catering
& Training is a non-brainer • China the global factory,
India the global office • The global product • IT/engineering
tools/commodities/consumer goods/packaging
Global Sourcing Moving Target: o Driven by lack of (IT) resources o Contribution to lower costs o Improved flexibility and quality
Moving across regions o West EU meets Far East o Old EU greets Eastern Europe
Moving towards “the global product”
Strategic Global Sourcing A business model related decision on the trade-off
between:
o Full Costso Qualityo Potential for Commoditisationo Lead Timeo Delivery reliabilityo Product Innovationo Capabilities of Suppliero Public Security and Safety Risko In-company focus
Global Sourcing ExcellenceFrom Fringe to Core
• Sourcing as integral part of the business model
• Securing Business Buy-In • From potential cost savings to
monitoring the real benefits • From low cost to high quality
sourcing • Managing the Sourcing
Business Processes – recall management
• End-User Involvement
Global Sourcing ExcellenceThe Profit Life Cycle
• Changing Costs Structure o Total Cost of Ownership • Eroding Margins • Increasing Speed to Market • Global Commoditisation Cases:Philips LightingWalmart
Global Sourcing ExcellenceMoving NationalCompetitive Advantages
Drivers of Competitive Advantage:
o Exchange rateso World Wide Capacityo Trade Patternso Cheap Labouro Capacity to Innovate
Global Sourcing ExcellenceThe Learning Supplier
At The Speed of Trusto Quicker Supplier Identificationo Better Supplier Integrationo Sustainable Supplier developmento The Supplier as Competitive Weapon
Cases: Asus, Embraer
Conclusions 2007: Sourcing moves around the globe 2012: Production moves around the globe
Focus on profit and risks remains key