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Managing operations internationally (Site selection (Governance (Customs…
Managing operations internationally
Site selection
Property
Ownership?
Rent or Lease?
Scale
Can you keep pace with demand?
Market access
Can you get in quick?
Transport hubs
Airports
Seaports
Major highways
Rail
Is there supporting infrastructure?
Governance
Customs relationships
Licenses/bonds
Labour laws
Cultural boundaries
Developing a Global Vision
Corporate vision inclusive of all staff
Enablers
Management structures
Systems
Reporting
Functional knowledge sharing
Suppliers
local and global
Strategic and cultural alignment
The total supply chain cost
includes
total landed cost
inventory holding cost
cost of product obsolescence
viewpoints
cost to produce/transport
cost to end customers (time)
Evaluation
Exchange rate changes
Capital costs
Transportation costs
The advent of nearshoring
Mitigating
Transportation costs
Fluctuating exchange rates
Regulation / transportation delays
Increase in offshore wages
Increase in raw material costs
Stages of manufacturing
Domestic sourcing
New startups
Sourcing locally
No active sourcing offshore
Offshore manufactured products
purchased through intermediaries
Reactive international sourcing
Lack of domestic supply
Forced international sourcing
Performance issues with domestic sourcing
Proactive international sourcing
Development of wider supply chain
Seeking better pricing
Seeking cost reduction
Global sourcing networks
Collaborative sourcing
Supply meeting market needs
Manufacturers and suppliers work
together outside home countries
International operations strategies
Home country operations with exports
Large domestic operation
Exports finished goods overseas
Service based businesses ran from home
Multi-domestic operations
Self-contained in-country operations
Usually setup due to extreme barriers
Duplicates functional costs
Erodes economies of scale
Regional operations
Continental strategy
Distribution channels in region
to support multiple countries
Balances local market needs
and logistics cost reductions
Global coordinated operations
Multi-country presence
Transfer of goods and services across regional boundaries
Exports products when local demand drops
May specialise products in certain
regions and export to all other regions