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Source: The World Bank World Development Indicators

90% of global demand is not fully satisfied by local supply. Supply chains are driving growth in world trade. Source: The World Bank World Development Indicators. Globalization of Supply Chains (n=7,642 Companies). Companies’ Expected SCM Globalization. 14%. 43%. Companies’ Expected SCM

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Source: The World Bank World Development Indicators

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  1. 90% of global demand is not fully satisfied by local supply • Supply chains are driving growth in world trade Source: The World Bank World Development Indicators

  2. Globalization of Supply Chains(n=7,642 Companies) Companies’ Expected SCM Globalization 14% 43% Companies’ Expected SCM Globalization 25% 57 Companies’ Current SCM Globalization 50 40

  3. Global Supply Chain Strategy17% in 2005  21% in 2013  25% in 2018

  4. Value Stakeholder Performance

  5. Goals of Global SCM • Develop and maintain strategic and operational aspects of global supply chains • Identify and leverage industry globalization drivers that affect global supply chains • Have knowledge of and leverage the worldwide infrastructure for global supply chains • Manage coordination and integration of global supply chains

  6. But most importantly,identify leverage points for • Identify leverage points for: • Global logisticsin global supply chains • Global purchasingin global supply chains • Global operationsin global supply chains • Global marketchannels in global supply chains

  7. How global is the industry? • How global should the firm’s strategy be? • How global should the supply chains be?

  8. 100% Globalized Need to educate the global marketplace (e.g., potential wasting of resources) Ideal Strategy Alignment Range Industry Average Not leveraging the global marketplace (e.g., potential wasting of market opportunities) 100% Domestic

  9. All Industries In Five Years All Industries In Ten Years All Industries Current Cost Globalization Drivers

  10. Inventory Positions Raw Materials Work-in-Process Finished Goods Global Suppliers Global Customers 32.30% 17.94% 49.76%

  11. Purchasing Activities: The View by C-Suite Executives 2013 2018 2023 Level I 9% 5% 5% Domestic Purchasing Engage in domestic purchasing activities only Engage in international purchasing activities only as needed Level II 23% 15% 12% International Purchasing Level III International purchasing activities as a part of SCM strategy 19% 15% 12% Global purchasing activities integrated across worldwide locations Level IV 19% 13% 10% Global Purchasing Global purchasing activities integrated across worldwide locations & functional groups Level V 30% 52% 61%

  12. Explaining Performance 70% 21 25%  Global Supply Chains Global Strategy To stay competitive, companies need to increase the globalization efforts of their supply chain by 25 percent in the next five years and 43 percent in the next 10 years.

  13. Total Cost Analysis Chain Coordination Strategic Alignment Human Resources

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