GMMCH10.ppt 57KB Jun 05 2011 09:30:25 PM
GLOBAL SOURCING
STRATEGY:
R & D,
MANUFACTURING, AND
MARKETING INTERFACES
Chapter Ten
John Wiley & Sons, I
1
Global Sourcing Strategy: R & D,
Manufacturing, and Marketing
Interfaces
Overview
1. Extent and Complexity of Global
Sourcing Strategy
2. Trends in Global Sourcing Strategy
3. Value Chain and Functional Interfaces
4. Logistics of Sourcing Strategy
5. Costs and Consequences of Global
Sourcing
John Wiley & Sons, I
2
Overview
Three major limitations of the
international product cycle theory
1. The trend to increased pace of new product
introduction and reduction in innovational lead
time
2. Ability to preempt the product life cyclepredictable sourcing development during the
product life cycle.
3. More active management of locational and
corporate resources on a global basis.
John Wiley & Sons, I
3
1. Extent and Complexity of Global
Sourcing Strategy
Exhibit 10-1 Honda’s Worldwide
Production and Sourcing Network
John Wiley & Sons, I
4
2. Trends In Global Sourcing Strategy
Exhibit 10-2 Factors that Affect Global
Sourcing Strategy
Trend 1: The Decline of Exchange Rate
Determinism of Sourcing
Trend 2: New Competitive Environment
Caused by Excess Worldwide Capacity
Exhibit 10-3 Key Factors for Sourcing from
Abroad
John Wiley & Sons, I
5
2. Trends in Global Sourcing Strategy
(cont)
Trend 3: Innovations in and
Restructuring of International Trade
Infrastructure
Trend 4: Enhanced Role of
Purchasing Managers
Trend 5: Trend Towards Global
Manufacturing
John Wiley & Sons, I
6
3. Value Chain and Functional
Interfaces
Exhibit 10-4 Value Chain Concept
Exhibit 10-5 Interfaces Among R&D,
Manufacturing, and Marketing
R&D/Manufacturing Interface
Manufacturing/Marketing Interface
Core Components Standardization
Product Design Families
Universal Product with All Features
Universal product with Different Positioning
Marketing/R&D Interface
John Wiley & Sons, I
7
4. Logistics Of Sourcing Strategy
Exhibit 10-6 Types of Sourcing Strategy
Intra-Firm Sourcing
Outsourcing
John Wiley & Sons, I
8
5. Costs and Consequences of Global
Sourcing
Need for Coordination
Functional Mismatch
Long - Term Consequences
Strategic Alliances
Dependence
Gradual Loss of Design and
Manufacturing Abilities
John Wiley & Sons, I
9
STRATEGY:
R & D,
MANUFACTURING, AND
MARKETING INTERFACES
Chapter Ten
John Wiley & Sons, I
1
Global Sourcing Strategy: R & D,
Manufacturing, and Marketing
Interfaces
Overview
1. Extent and Complexity of Global
Sourcing Strategy
2. Trends in Global Sourcing Strategy
3. Value Chain and Functional Interfaces
4. Logistics of Sourcing Strategy
5. Costs and Consequences of Global
Sourcing
John Wiley & Sons, I
2
Overview
Three major limitations of the
international product cycle theory
1. The trend to increased pace of new product
introduction and reduction in innovational lead
time
2. Ability to preempt the product life cyclepredictable sourcing development during the
product life cycle.
3. More active management of locational and
corporate resources on a global basis.
John Wiley & Sons, I
3
1. Extent and Complexity of Global
Sourcing Strategy
Exhibit 10-1 Honda’s Worldwide
Production and Sourcing Network
John Wiley & Sons, I
4
2. Trends In Global Sourcing Strategy
Exhibit 10-2 Factors that Affect Global
Sourcing Strategy
Trend 1: The Decline of Exchange Rate
Determinism of Sourcing
Trend 2: New Competitive Environment
Caused by Excess Worldwide Capacity
Exhibit 10-3 Key Factors for Sourcing from
Abroad
John Wiley & Sons, I
5
2. Trends in Global Sourcing Strategy
(cont)
Trend 3: Innovations in and
Restructuring of International Trade
Infrastructure
Trend 4: Enhanced Role of
Purchasing Managers
Trend 5: Trend Towards Global
Manufacturing
John Wiley & Sons, I
6
3. Value Chain and Functional
Interfaces
Exhibit 10-4 Value Chain Concept
Exhibit 10-5 Interfaces Among R&D,
Manufacturing, and Marketing
R&D/Manufacturing Interface
Manufacturing/Marketing Interface
Core Components Standardization
Product Design Families
Universal Product with All Features
Universal product with Different Positioning
Marketing/R&D Interface
John Wiley & Sons, I
7
4. Logistics Of Sourcing Strategy
Exhibit 10-6 Types of Sourcing Strategy
Intra-Firm Sourcing
Outsourcing
John Wiley & Sons, I
8
5. Costs and Consequences of Global
Sourcing
Need for Coordination
Functional Mismatch
Long - Term Consequences
Strategic Alliances
Dependence
Gradual Loss of Design and
Manufacturing Abilities
John Wiley & Sons, I
9