Global Supply and Sustainability

Global Supply ManagementCautions:

Evaluation of Sources Lead Times and Variability Logistical and Delivery Problems Quality Questions Political Issues Labor Conflicts Security Finding Real Total Cost

Global Supply ManagementCautions:

Lean and Global Supply Chains Sustainability Governmental Regulations Natural Disasters Intellectual Property Protection Currency Exchange Rate Fluctuation Warranty Claims Ethics

Finding and Managing Global Suppliers

Foreign Purchasing OfficesBrokersTrading CompaniesDirectoriesTrade ShowsForeign EmbassiesSubsidiaries

Countertrade International Reciprocity

Offsets Counterpurchase Buyback

Barter Switch

Sustainability

Sustainability ModelThree Components of the Model

Environmental Sustainability Social Responsibility Organizational Sustainability

The Importance of Supply Chain Management

Changes in Supply Chains Extensive Lengthy Complex Geographically Disbursed

Global Nature Creates Uncertainty, Risk and Questions of Sustainability

Risk and SustainabilitySupply Chain Risk

External Governmental Infrastructure Supplier Logistical Terrorism Natural Disasters Accidents

Internal Policies Administrative Operational Organizational Ethics

Sustainability Environmental

Non-Renewable Resource Energy Consumption Emissions Hazardous Materials

Social Responsibility Ethics Gender Equity Living Wage Labor and Relationships

Organizational Profitability, LT Viability Customer Perceptions Customer Relationships

Global Population Forecast

The Global Example

UN ForecastWorld Population 2007: 6.78 BillionWorld Population 2050: 9.2 Billion

Today: 50% of Population in Urban Areas2050: 70% in Urban Areas2050: 27 Mega-Cities of Over 10 Million

How Will Infrastructure Support Growing Population?

Global Sustainability Changes Population

7 Billion (October, 2012) Over 5.5 Billion in Less Developed Countries Africa: Growth So High Population Will Triple

1 Bil Now, 3.6 Bil Forecast by 2100

Yemen: 25 to 100 Million Nigeria 162 to 730 Million U.S. Faster Than Most Developed Countries

Immigration and High Hispanic Birthrate (311M – 478M)

All of This Assumes Food & Water AvailableSource: UN Forecasts

The Environment and Supply Management

Planning for Population ExplosionResource Scarcity Increased Pressure on Supply

Managers to Provide Positive Environmental Results.

What Does This Mean for Supply Management?

Increasing Emphasis on Sustainability and Green Activities

Changes in How We SourceChanges in Inventory PoliciesChanges in How We Use Transportation

and Logistics Increased Scope of the Supply Function

Questions, Comments, Observations, Conclusions,

Arguments?

Review