Please enable JavaScript.
Coggle requires JavaScript to display documents.
Sesssion 3 - Coggle Diagram
Sesssion 3
Implications of internationalisation
better sourcing
exposure to international competition
encourage innovation
better supply network
input
flexible for suppliers
new suppliers
pressure for
low cost sourcing
lower cost labour
business process outsourcing
transformation process
increased complexity
multiple/conflictive objectives
pressure to standardise
economies of scale/scope
pressure to specialise
mass customisation
dedicated operations
extended supply chains
foreign facilities
output
pressure to tailor products
risks of alienation customers with standardised products
greater choice/flexibility from suppliers
issues
low cost labour
working conditions
transportation
Offshoring and reshoring
domestic
companies start
source local
ease of control
lack of complexity
no active sourcing from offshore suppliers
any goods made abroad
purchased indirectly through intermediaries
less risk/administration
Reactive international sourcing
lack of domestic supply of raw materials or components
forcing international purchasing
issues with domestic suppliers’ performance
creating motivation to source globally.
Proactive international sourcing
sophisticated purchasing practices
help develop a wider supply chain
better prices and quality
awareness
opportunities for price reduction
buying overseas and proactive sourcing
Global sourcing networks
develop collaborative supply networks
each element
supply chain
works towards a common goal to supply a market
International operations strategies
Home country operations with exports
traditional
large domestic operation
exports product overseas
fully produced form
Multi-domestic operations
separate
self contained
operations
in each country
extreme differences in market characteristics
practical reasons - language problems
support functions have to be duplicated.
Global coordinated operations
international operation
facilities in many countries
operate in most regions
lot of transfer of goods/services
across regions
Regional operations
balance
local specialisation
economies of scale
ability
serve local markets
logistics costs of transporting goods
Internationalisation of Operations
supply chain
offshore
geographic spread
raw materials
limited control
issue
not locally sourced
advantage
costs
disadvantage
carbon footprint
delay
orders placed in advance
planning complex
currency
tax
quality problem
planning error
not sustainable