200711 global sourcing presenation

8/15/2019 200711 Global Sourcing Presenation

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THE GLOBAL eMARKETPLACE

TM

Global SourcingStrategies to Achieve Long-Term Success

Brandon Spear

Senior Vice President - Operations

[email protected]


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Global SourcingA Fundamental Strategic b!ective

!at is G"oba" Sourcin#$T!e business process o% identi%&in#' e(a"uatin#' ne#otiatin# andcon%i#urin# supp"& c!ains across mu"tip"e supp"iers and #eo#rap!ies

)ommon *easons %or a G"oba" Sourcin# Strate#& *educin# o(era"" cost structure A(ai"abi"it& o% ne+ tec!no"o#& and capacit&. O%ten domestic

supp"iers "ac, capacit& and or are not ma,in# t!e necessar&in(estments to sta& competiti(e.

Estab"is!in# a"ternati(e sources o% supp"& reduced ris,. Access to ne+ desi#ns or specia"i/ed inte""ectua" capita". Superior qua"it&. T!is is t&pica""& due to supp"ier in(estment in

tec!no"o#& and capacit& to attract #"oba" business.


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Global Sourcing Strategies

0. 1e(e"op and imp"ement a p"an2. Ta,e a mu"ti-countr& approac!

3. Mo(e more spend to 4Lo+ )ost )ountries5

6. 1e(e"op a p"an be&ond cost sa(in#s

7. )reate e%%ecti(e Loca" Procurement O%%ices8. 1e(e"op a strate#& to miti#ate ris,


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Global Sourcing PlanA t"#ical a##roach

0. *eco#ni/e t!e

need %or #"oba"

sourcin# and L))

opportunities

2. Estab"is! G"oba"

Sourcin# Steerin#

)ommittee 9inc"ude

business unit

e:ecuti(es;

3.


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Emerging Mar$etsMulti Countr" A##roach

)!ina is t!e primar& Lo+ )ost )ountr& 9L));

But near s!ore countries need to part o% strate#& Bra/i"' Me:ico and Ar#entina are (iab"e mar,ets and

c"oser to


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Emerging Mar$etsMulti Countr" A##roach

%ra&il' ()

%ra&il' ()

Argentina' *)

Argentina' *)

Me+ico' ,)

Me+ico' ,)

.ndia' ,/)

.ndia' ,/)

China' 01)

China' 01)

Poland' ,0)

Poland' ,0)

C&ech Re#' ,/)

C&ech Re#' ,/)

China' ,*)

China' ,*)

2ungar"' ,)

2ungar"' ,)


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Financial %ene3its

=ncreasin# Procurement Spend in L))

Leadin# )ompanies e:pect to doub"e t!e spend (o"ume in L)) o(er t!ene:t 3 &ears' %rom 06C to 2?C

=ncrease in o(era"" sa(in#s e:pected to be D0C

Bene%its )ost reductions a(era#in# 0C %rom 06C to 2?C Tota" )ost o% O+ners!ip reductions a(era#in# 02C

1o+nside =n(entor& =n(estment increase o% 3C =ncreased Transportation Lo#istics cost 2C

)ost reduction bene%it is signi3icant)ost reduction bene%it is signi3icant


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Local Procurement 33ice 4 Cont5dCa#abilities to achieve success

Step 2 To materia"i/e t!e sa(in# opportunities t!e LPO

s!ou"d !a(e transactiona" capabi"ities

E:ecute biddin# processes

Estab"is! and pro(ide Lo#istics Mana#ement Procurement transactions

)ontract and proIect mana#ement

=n(oicin# and Pa&ments


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Local Procurement 33ice 4 Cont5dCa#abilities to achieve success

Step 3 To ma:imi/e and maintain sa(in#' t!e LPO

s!ou"d !a(e ad(anced capabi"ities

)ate#or& mana#ement 1e(e"op supp"ier mar,et strate#ies

=n(entor& mana#ement

Procurement and Sourcin# trainin#


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Ris$ Mitigation 6cont78

*is,s are mana#eab"e +it! time and resources LPOJs must +or, c"ose"& +it! #"oba" supp"iers

Estab"is! ris, miti#ation strate#ies

1ua" source +it! "o+-cost supp"iers 9?C to one supp"ier'2C to anot!er;


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Summar"

or"d+ide competition is increasin# G"oba" Sourcin# )ompanies are "oo,in# at 30 6C o% annua" e:penditure

)!ina is t!e primar& countr& but near s!ore is (iab"e Bra/i"' Me:ico' Ar#entina' Eastern Europe

A corporate strate#& %or G"oba" Sourcin# is critica"

T!e LPO is critica" to creatin# and maintainin# bene%its Must be inte#rated into core procurement or#ani/ation


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9uestions


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THE GLOBAL eMARKETPLACE

TM

T2A:K-;<

Brandon Spear Senior Vice President - Operations

[email protected]

200711 global sourcing presenation

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