Chapter 9: International issuesinSCM9-1
9-1 Chapter 9: International issues in SCM
9.1 IntroductionAboutone-fifthof theoutput of U.S.firmsisproducedoverseasOne-quarterof U.S.importsarebetweenforeignaffiliates and U.S.parentcompanies.Sincethelate1980s,overhalfofU.Scompaniesincreasedthenumberofcountries in which they operate9-2
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 ChainManagementDispersedoveralargergeographicalareaOffersmanymore opportunities than justthedomesticsupplychainRiskfactorsarealsopresent9-3
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 SupplyChainsInternational distributionsystemsManufacturingstilloccursdomestically,butdistributionandtypicallysomemarketingtakeplaceoverseasInternationalsuppliersRaw materials and components are furnished by foreignsuppliersFinalassemblyisperformeddomesticallyInsomecases,thefinalproductisthenshippedtoforeignmarketsOffshore manufacturingProduct is typically sourcedand manufactured in a singleforeignlocationShippedbacktodomesticwarehousesforsaleanddistributionFullyintegratedglobal supplychainProductsare supplied,manufactured,anddistributedfromvarious facilities locatedthroughoutthe world.9-4
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 GlobalizationGlobalmarketforcesTechnologicalforcesGlobalcostforcesPoliticalandeconomicforces9-5
9-5 Forces toward Globalization ⚫ Global market forces. ⚫ Technological forces. ⚫ Global cost forces. ⚫ Political and economic forces