15000 14000 13000 12000 90% of global demand is not fully satisfied by local supply 11000 10000 Index: 1970 = 100 9000 Supply chains are driving growth in world trade 8000 7000 Exports GDP 6000 5000 4000 3000
Seri es 1 2013 2018 2023 Global Supply Chain Strategy 17% in 2005 21% in 2013 25% in 2018 25 23 22 22 21 21 21 21 21
20 19 19 18 17 16 15 15 14 13 10 5 0 D
ell A BB A l s ev tta en i B In em rM h Si lo c e s u rc A -B
r e us e nh N tl es N ia ok U er v e l ni ic M t of
s ro ia nd a Sk Sw h atc O V M G up ro A ex m ex
m e C x dE e F d ce r e M es Global Supply Chain Management Conversion (Firm and SBU Activities, Behaviors) Value
Stakeholder Performance Goals of Global SCM Develop and maintain strategic and operational aspects of global supply chains Identify and leverage industry globalization drivers that affect global supply chains Have knowledge of and leverage the worldwide infrastructure for global supply chains Manage coordination and integration of global supply chains But most importantly, identify leverage points for Identify leverage points for: Global logistics in global supply chains Global purchasing in global supply chains Global operations in global supply chains Global market channels in global supply chains How global is the industry? How global should the firms strategy be? How global should the supply chains be? 100% Globalized
Need to educate the global marketplace (e.g., potential wasting of resources) Ideal Strategy Alignment Range Industry Average Not leveraging the global marketplace (e.g., potential wasting of market opportunities) 100% Domestic All Industries In Five Years All Industries Current 100 90 All Industries In Ten Years
80 70 69 69 ry ne i h C ac d n M a ial es r h t us atc d n W I
s rd a C 62 64 65 ce an r su In t en m Ce ks c lo 70
71 76 75 72 60 50 40 30 20 10 0 it ed r C t on en i t m
tw ta ip of or u p S q s ter an cE r i u T n p m ir tro o c A e C El
e ar A les i ob m o ut Cost Globalization Drivers C ter u p om H dw ar e ar
Raw Materials Work-inProcess Finished Goods 32.30% 17.94% 49.76% Global Customers Global Suppliers Inventory Positions Purchasing Activities: The View by C-Suite Executives Domestic Purchasing 2013
2018 2023 Level I Engage in domestic purchasing activities only 9% 5% 5% Level II Engage in international purchasing activities only as needed 23% 15% 12% Level III
International purchasing activities as a part of SCM strategy 19% 15% 12% Level IV Global purchasing activities integrated across worldwide locations 19% 13% 10% Level V Global purchasing activities integrated across worldwide locations & functional groups
30% 52% 61% International Purchasing Global Purchasing Explaining Performance 70% 21 25% Global Strategy Global Supply Chains To stay competitive, companies need to increase the globalization efforts of their supply chain by 25 percent in the next five years and 43 percent in the next 10 years. Total Cost Analysis
Chain Coordination Strategic Alignment Human Resources
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