Source: The World Bank World Development Indicators

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description

90% of global demand is not fully satisfied by local supply. Supply chains are driving growth in world trade. Source: The World Bank World Development Indicators. Globalization of Supply Chains (n=7,642 Companies). Companies’ Expected SCM Globalization. 14%. 43%. Companies’ Expected SCM - PowerPoint PPT Presentation

Transcript of Source: The World Bank World Development Indicators

Page 1: Source:  The World Bank World Development Indicators
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Source: The World Bank World Development Indicators1960.0

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Exports

GDP

Inde

x: 1

970

= 1

00

90% of global demand is not fully satisfied by local supply

Supply chains are driving growth in world trade

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Globalization of Supply Chains(n=7,642 Companies)

2013 2018 20230

10

20

30

40

50

60

Series 1

25%

14%43%

Companies’Current SCMGlobalization

Companies’Expected SCMGlobalization

Companies’Expected SCMGlobalization

40

50

57

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DellABB

Siemen

s

Anheu

ser-B

usch I

nBev

Arcelor

Mittal

Nestlé

Nokia

Unilev

er

Microso

ft

Skand

ia

Swatch

OMV Grou

pAmex

Cemex

FedEx

Merced

es0

5

10

15

20

2523

22 2221 21 21 21 21

19 1918

1716

1514

13

Global Supply Chain Strategy17% in 2005 21% in 2013 25% in 2018

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Conversion (Firm and SBU

Activities, Behaviors)

Global Supply Chain Management

Value Stakeholder Performance

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Goals of Global SCMDevelop and maintain strategic and operational aspects of global supply chainsIdentify and leverage industry globalization drivers that affect global supply chainsHave knowledge of and leverage the worldwide infrastructure for global supply chainsManage coordination and integration of global supply chains

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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

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How global is the industry? How global should the firm’s strategy be? How global should the supply chains be?

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Need to educate the global marketplace(e.g., potential wasting of resources)

Not leveraging the global marketplace(e.g., potential wasting of market opportunities)

100%Globalized

100%Domestic

IndustryAverage

IdealStrategyAlignmentRange

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Insura

nce

Cemen

t

Watc

hes a

nd C

locks

Indust

rial M

achine

ry

Credit C

ards

Compu

ter Soft

ware

Air Tran

sporta

tion

Electro

nic Equ

ipmen

t

Automob

iles

Compu

ter H

ardware

0

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100

62 64 6569 69 70 71 72 75 76

All IndustriesCurrent

All IndustriesIn Five Years

All IndustriesIn Ten Years

Cost Globalization Drivers

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Inventory Positions

RawMaterials

Glob

al S

uppl

iers

Global Customers

Work-in-Process

Finished Goods

32.30% 17.94% 49.76%

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23%

19%

19%

30%

9%

15%

15%

13%

52%

5%

12%

12%

10%

61%

5%

Purchasing Activities:The View by C-Suite Executives

Engage in domestic purchasing activities only

Engage in international purchasing activities

only as needed

International purchasing activities as a part of

SCM strategy

Global purchasing activities integrated across

worldwide locations

Global purchasing activities integrated across worldwide locations & functional groups

Level II

Level III

Level IV

Level V

Level I

2013 2018 2023

International Purchasing

Domestic Purchasing

Global Purchasing

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70% 21 25%Global Supply ChainsGlobal Strategy

Explaining Performance

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.

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Total Cost Analysis

Strategic AlignmentChain Coordination

Human Resources

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