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GLOBALISATION (Offshoring (Problems # (Supply chain failings (Insufficient…
GLOBALISATION
Offshoring
Attractions
Low labour costs
Short-term
Increases home exports
Supply chain cost
Total landed cost
Inventory holding cost
Obsolesence
Nearshoring
Bringing home
Recession
Exchange rate fluctuations
Rising cost of raw materials
Piracy
Fuel Prices
Problems
#
Transportation delays
Poor infrastructure
Government regimes
Supply chain failings
Insufficient flexibility
Logistics networks
Cost Trade-off
Fluctuating exchange rates
Increases home exports
Complex operations
Country specific
Cultural influence
Unique supply chain needs
Non-standardised
Distribution network plan
Overseas site selection
Business strategy?
Foreign real estate
Service impact?
Local infrastructure
Flexibility
Adaptability to market growth
Barriers to market entry
Location & logistics
Customs & legal
Import/export licenses
Local supply base?
Adequate investment?
Governance, finance & legal
Duties & Tariffs
Index of logistics performance
150 countries
World Bank & Turku School of Economics
7 points of assessment
Global Vision
Best Practice Characteristics: Handfield & Nichols
Primary driver for investment
Focus for global supply base
Management structures & systems
Optimise local & global supplier mix
Align supplier capabilities with competitive & manufacturing strategies
Understanding cost drivers to reduce cost
Supply chain visibility essential