Chapter 9: International issues in SCM
9-1 Chapter 9: International issues in SCM
9. 1 Introduction o About one-fifth of the output of U.s. firms is produced overseas o One-quarter of U.S. imports are between foreign affiliates and U.s. parent companles o Since the late 1980s. over half of u.s companies increased the number of countries in which they operate
9-2 9.1 Introduction ⚫ About one-fifth of the output of U.S. firms is produced overseas. ⚫ One-quarter of U.S. imports are between foreign affiliates and U.S. parent companies. ⚫ Since the late 1980s, over half of U.S. companies increased the number of countries in which they operate
International Supply Chain Management o Dispersed over a larger geographical area o Offers many more opportunities than just the domestic supply chain e Risk factors are also present
9-3 International Supply Chain Management ⚫ Dispersed over a larger geographical area ⚫ Offers many more opportunities than just the domestic supply chain ⚫ Risk factors are also present
International Supply Chains International distribution systems Manufacturing still occurs domestically, but distribution and typically some marketing take place overseas International suppliers Raw materials and components are furnished by foreign suppliers Final assembly is performed domestically In some cases, the final product is then shipped to foreign markets Offshore manufacturing Product is typically sourced and manufactured in a single foreign location Shipped back to domestic warehouses for sale and distribution o Fully integrated global supply chain Products are supplied, manufactured, and distributed from various facilities located throughout the world
9-4 International Supply Chains ⚫ International distribution systems ⚫ Manufacturing still occurs domestically, but distribution and typically some marketing take place overseas. ⚫ International suppliers ⚫ Raw materials and components are furnished by foreign suppliers ⚫ Final assembly is performed domestically. ⚫ In some cases, the final product is then shipped to foreign markets. ⚫ Offshore manufacturing ⚫ Product is typically sourced and manufactured in a single foreign location ⚫ Shipped back to domestic warehouses for sale and distribution ⚫ Fully integrated global supply chain ⚫ Products are supplied, manufactured, and distributed from various facilities located throughout the world
Forces toward globalization ● Globa| market forces o Technological forces ● Globa| cost forces o Political and economic forces 9-5
9-5 Forces toward Globalization ⚫ Global market forces. ⚫ Technological forces. ⚫ Global cost forces. ⚫ Political and economic forces