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