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Globalization: It's a not-so-small world (Logistics performance index,…
Globalization: It's a not-so-small world
Offshoring: Savings short term rather than long term
Failing to calculate the total supply chain cost of offshoring
Inventory holding cost
Cost of product obsolescence
Total landed cost
Distribution methods: Vary depending on country
Egypt & South Africa - Sell to distributors, expected monthly
Russia - Distributors collect from warehouse
Hong Kong - Expected within a few hours
China - Biggest offshoring capital of the world
Inadequate in-country transportation
Customs fines, for documentation errors
Unexpected supply chain costs
Understanding the new markets
Wage rises imminent, to grow economy
Site Selection decisions overseas
Cost of facilities near key distribution areas (airports, seaports, highways, railroad etc..)
Location - availability of logistic services
How quickly can you enter and serve the market (i.e. can you afford to quickly enter)
Customs department - licences obtained to move goods in and out of country.
Flexibility of Market Strategy
Local supply base, local labour laws and culture of region
Logistics performance index
Competence of local logistics providers
Capability to track and trace international shipments
Ease and affordability of arranging international shipments
Cost of domestic logistics
Quality of transportation and information technology infrastructure for
logistics
On-time delivery performance
Efficiency of the Customs clearance process
Managing offshore sourcing
Improving market skills and language capabilities a high priority
Plans in place to increase supplier base for global sources
Lack of strategies, for a clear understanding of supply chain and logistical costs
Understanding the other parties interests
Particular problems that occur when managing operations internationally.