Managing Global Supply and Risk Best Practices, Concepts, and Strategies
, by Trent, Robert J.; Roberts, Llewellyn- ISBN: 9781604270143 | 1604270144
- Cover: Hardcover
- Copyright: 9/1/2009
Foreword | p. xiii |
Preface | p. xvii |
About the Authors | p. xxiii |
Web Added ValueÖ | p. xxvi |
Setting the Stage | |
The Changing Global Landscape | p. 3 |
The Growth in International Trade | p. 4 |
The Micro Effects from Macro Events | p. 7 |
Trade Imbalances | p. 7 |
Changing Supply and Demand Markets | p. 8 |
Changing Exchange Rates | p. 10 |
The Growth in International Purchasing | p. 11 |
Why Do We Engage in International Purchasing? | p. 12 |
Evolving Toward Global Supply Management | p. 15 |
A Global Supply Management Success Story | p. 19 |
Don't Forget About Supply Chain Risk | p. 20 |
Concluding Thoughts | p. 21 |
References | p. 22 |
Understanding International Purchasing | |
Managing International Logistics Issues | p. 25 |
International Logistics Complexities | p. 26 |
Longer Material Pipelines | p. 27 |
Increase in Total Supply Chain Costs | p. 28 |
Increased Supply Chain Risk | p. 30 |
Poor and Differing Logistical Infrastructures | p. 31 |
Differing Shipping Terms, Laws, and Acts | p. 32 |
Reverse Logistics Requirements | p. 36 |
Increased Use of Agents and Third Parties | p. 36 |
Environmental Issues and Concerns | p. 38 |
Supply Chain Security and Post 9-11 Requirements | p. 40 |
Concluding Thoughts | p. 41 |
References | p. 42 |
Sourcing in Emerging and Low-Cost Countries | p. 43 |
Overview | p. 43 |
Potential Problem Areas | p. 45 |
The China Syndrome | p. 48 |
The Challenges with China Sourcing | p. 49 |
Protecting Intellectual Property | p. 49 |
Is the Allure of China Fading? | p. 51 |
International Purchasing Offices | p. 55 |
Using IPOs to Support Global Outsourcing-a Case Example | p. 58 |
Finished Goods Outsourcing | p. 58 |
Concluding Thoughts | p. 60 |
References | p. 61 |
Total Cost of Ownership | p. 63 |
What Is Total Cost? | p. 64 |
Measuring Total Cost | p. 64 |
The Hidden Costs | p. 65 |
Types of Total Cost Models | p. 66 |
Total Landed Cost Models | p. 67 |
Supplier Performance Models | p. 69 |
Life Cycle Cost Models | p. 71 |
Total Cost Elements | p. 72 |
The Four A's of Total Cost Data | p. 72 |
Specific Total Cost Elements | p. 74 |
Calculating Total Landed Cost at Pets Supply, Inc | p. 76 |
Identifying Total Landed Cost Elements | p. 76 |
Inventory Carrying Charges | p. 78 |
Low-Cost Country Sourcing at UPS, | p. 80 |
Options Considered by UPS | p. 81 |
How UPS Identified Qualified Suppliers | p. 81 |
Managing the Risks of Low-Cost Country Sourcing | p. 82 |
Lessons Learned | p. 84 |
Concluding Thoughts | p. 85 |
References | p. 85 |
Additional International Topics | p. 87 |
Understanding Cultural Differences | p. 87 |
Eastern vs. Western Cultures | p. 88 |
Greeting Rituals | p. 90 |
Gift Giving | p. 91 |
Gestures and Eye Contact | p. 91 |
Perception of Time | p. 92 |
Meeting Customs and Conduct | p. 93 |
Use of Names, Titles, and Business Cards | p. 93 |
Negotiating Styles | p. 94 |
Language and Communication | p. 94 |
General Cultural Differences and Mannerisms | p. 96 |
Outsourcing Services Internationally | p. 97 |
Choosing the Right Service Provider | p. 98 |
Destination India | p. 101 |
Concluding Thoughts | p. 105 |
References | p. 106 |
Managing Global Supply Risk | |
Understanding Global Risk | p. 111 |
Marketplace Trends and Developments Affecting Risk | p. 112 |
Increased Globalization | p. 112 |
Outsourcing Noncore Capabilities | p. 113 |
Reduced Cycle Times | p. 114 |
State-of-the-Art Information Technology | p. 114 |
Proliferation of SKUs and Mass Customization | p. 115 |
The Environment and Recovery, Recycling, and Reuse of Products | p. 116 |
Changing Nature of the Marketplace | p. 117 |
Pressure to Reduce Cost | p. 117 |
Categories of Global Risk | p. 118 |
Unstable Geopolitical Climates | p. 118 |
Insecure Supply Chains | p. 119 |
Currency Fluctuations | p. 119 |
Local and Regional Economic Changes | p. 120 |
Logistics Infrastructure | p. 120 |
Cultural, Language, and Legal Differences | p. 121 |
Documentation Requirements and Customs Clearance | p. 121 |
Quality and Traceability | p. 122 |
Supplier Financial Solvency | p. 123 |
Appreciating Global Risk at Ohio Art | p. 123 |
A New Set of Issues | p. 124 |
Concluding Thoughts | p. 126 |
References | p. 126 |
Identifying, Preventing, and Managing Global Risk | p. 129 |
Identifying and Assessing Risk | p. 130 |
Identifying and Categorizing Risks | p. 131 |
Risk Assessment and Prioritization | p. 131 |
Risk Mitigation | p. 132 |
Monitoring and Managing Risk | p. 132 |
Approaches and Practices for Preventing and Managing Risk | p. 133 |
Probability and Severity Mapping | p. 133 |
Risk Contingency Planning | p. 134 |
Managing Currency Fluctuations | p. 137 |
Rigorous Supplier Evaluation and Selection Process | p. 139 |
Supplier Development | p. 142 |
International Purchasing Offices | p. 144 |
Total Cost Perspective | p. 144 |
Backup Sources | p. 145 |
Possession of Tooling | p. 146 |
Third-Party Data Services and Data Repository | p. 146 |
Use of Contracts | p. 147 |
Aligning Technology Roadmaps with Suppliers | p. 148 |
The Changing Face of Risk Management at DHL Supply Chain | p. 149 |
Managing Risk for a Health Care Products Company | p. 149 |
Coping with Hurricane Ike | p. 150 |
Insights Gained by the Risk Management Team | p. 151 |
Concluding Thoughts | p. 152 |
References | p. 152 |
Leveraging Supply Market Intelligence | p. 155 |
Defining Supply Market Intelligence | p. 156 |
Determining the Right Supply Strategy | p. 156 |
Uses, Categories, and Levels of Supply Market Intelligence | p. 159 |
Macro-Environmental SMI | p. 161 |
Country-Level SMI | p. 163 |
Industry and Commodity SMI | p. 164 |
Supplier SMI | p. 164 |
Sources of Supplier Market Intelligence | p. 165 |
Macro-Environmental SMI | p. 165 |
Geographic and Country-Specific SMI | p. 166 |
Industry and Commodity SMI | p. 168 |
Supplier SMI | p. 168 |
Concluding Thoughts | p. 171 |
References | p. 172 |
Pursuing Global Supply Management Excellence | |
Making the Case for Global Supply Management | p. 175 |
The Need for a Better Understanding | p. 176 |
Evolving Toward Global Supply Management | p. 177 |
Reaping the Benefits of Global Supply Management | p. 180 |
Linking Global Supply Management to Business Financials | p. 183 |
Reduced Purchase Costs from Global Supply Management | p. 184 |
Reduced Inventory from Global Supply Management | p. 185 |
the Best of Both Worlds | p. 186 |
Exploring the Differences between the Segments187 | |
Concluding Thoughts | p. 194 |
Reference | p. 194 |
Developing Global Supply Strategies | p. 195 |
Understanding the Concept of Supply Strategies | p. 196 |
The Importance of Strategy Objectives and Goals | p. 197 |
Global Supply Strategy Constraints | p. 198 |
Characteristics of Effective Global Supply Strategies | p. 200 |
Global Supply Strategy Development | p. 201 |
A Leader's Approach for Developing Global Supply Strategies | p. 203 |
Asking the Right Questions | p. 206 |
Developing a Global Process at Dennison Chemicals | p. 208 |
Process Absolutes | p. 209 |
Global Facilitators and Inhibitors | p. 212 |
Dennison's Global Supply Process | p. 214 |
Concluding Thoughts | p. 215 |
Reference | p. 215 |
Factors that Define Global Success | p. 217 |
Global Supply Management Success Factors | p. 217 |
Access to Qualified Personnel | p. 218 |
A Formal and Well-Defined Process | p. 220 |
The Right Organizational Design Features | p. 221 |
The Ability to Measure Global Savings | p. 227 |
The Availability of Real-Time Communication Tools | p. 228 |
Systems that Provide Access to Critical Information | p. 228 |
An Awareness of Global Suppliers | p. 230 |
The Availability of Suppliers with Global Capabilities | p. 231 |
Operations, Manufacturing, and Internal Customer Buy-In | p. 232 |
Preselection Supplier Site Visits | p. 234 |
Concluding Thoughts | p. 234 |
References | p. 235 |
Creating a World Class Global Organization | p. 237 |
Characteristics of a Super Global Organization | p. 237 |
Executive Leadership | p. 240 |
A Weil-Defined Process | p. 240 |
Resource Commitment | p. 241 |
Information Technology Systems | p. 243 |
Organizational Design | p. 244 |
Measurement | p. 244 |
Communication and Coordination | p. 245 |
Global Supply Management Best Practices | p. 245 |
Best Practice: Supporting Global Supply Management at the Highest Corporate Levels | p. 246 |
Best Practice: Using Cross-Functional Teams to Support Global Supply Management | p. 246 |
Best Practice: Continuously Identifying and Reviewing Global Opportunities | p. 247 |
Best Practice: Retooling the Supply Management Workforce | p. 248 |
Best Practice: Providing Time to Pursue Global Opportunities | p. 249 |
Best Practice: Making Globalization Work within a Decentralized Culture | p. 250 |
Concluding Thoughts | p. 251 |
References | p. 252 |
Learning from Global Supply Leaders | p. 253 |
Evolving to the Highest Global Level at Air Products | p. 253 |
The Global Sourcing Initiative-the Next Generation of Globalization | p. 255 |
Expected Performance Outcomes | p. 257 |
Making the GSI Work | p. 257 |
Coordinating Supply Management across Many Countries | p. 258 |
Segmenting Worldwide Opportunities | p. 259 |
A Seven-Step Strategic Sourcing Process | p. 260 |
Global Systems Support | p. 263 |
Making Globalization Work-Some Examples | p. 263 |
Packaging | p. 264 |
Fragrances and Flavors | p. 264 |
Raw Materials | p. 266 |
Doing It Like the Textbook Says at Whirlpool | p. 267 |
It Starts with Strong Central Leadership | p. 268 |
Using Global Commodity Business Teams to Get the Job Done | p. 270 |
Establishing International Purchasing Offices | p. 271 |
Component Architecture Management Teams-a Bold, New Initiative | p. 272 |
Supply Chain Improvement Initiatives | p. 274 |
Concluding Thoughts | p. 275 |
Reference | p. 276 |
Looking Toward the Future | |
Defining the Future State | p. 279 |
Predictions Related to Global Supply Management | p. 279 |
Predictions Related to Global Risk Management | p. 287 |
Concluding Thoughts | p. 290 |
References | p. 291 |
Index | p. 295 |
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