global supply chain managament

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GLOBAL SUPPLY C Unit 1: Introduction DIPL. JUR. JAN NICOLAI HENNEMANN B.ENG. (HONS), M HAIN MANAGEMENT MANNHEIM | GERMA NY | JAN | 16 V2.1

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Page 1: Global Supply Chain Managament

G L O B A L S U P P L Y C H A I N

Unit 1: Introduction

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A

C H A I N M A N A G E M E N T

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A N Y | JAN | 1 6 V 2 . 1

Page 2: Global Supply Chain Managament

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 2

Page 3: Global Supply Chain Managament

WHY AM I

ROBERT DILTS‘ UNIFIED FIELD OF NLP

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE?

SPIRITUAL

ROBERT DILTS‘ UNIFIED FIELD OF NLP

IDENTITY

BELIEF

CAPABILITY

BEHAVIOR

EVIRONMENT

3

Page 5: Global Supply Chain Managament

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

5

Page 6: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 6

Page 7: Global Supply Chain Managament

Start

MultipleTransitions

through ages

1

ProcurementManufacturingWarehousingDistribution

Sales

2

Innovation is keyevolutive ordisruptive

3

GSCM - HISTORY

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Hungry?Ch. 2

Innovation is keyevolutive ordisruptive

3

Global economicpower keeps

moving

4

What‘s next ?

5

HISTORY 7

Page 8: Global Supply Chain Managament

EPIC -

04

01

03Infrastructure

Competence

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INTRO01

02

03

Economics

Politics

8

Page 9: Global Supply Chain Managament

• Economic output of a country

• Potential for future growth

• Ability to attract foreign directinvestment

• Ability to generate a steady returnon investments made in the country

EPIC – ECONOMY

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

returncountry

ECONOMY (1/4) 9

Page 10: Global Supply Chain Managament

EPIC – ECONOMY

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Indicate overall potential forconsumer sales

• Determine supply chain activity

• Help to craft future investmentstrategy

Economic Output &Growth Rate

• Indicate overall potential forconsumer sales

• Predict existing sales potential

• In relation with economic outputindicator for market attractiveness

Population Size

ECONOMY (2/4) 10

Page 11: Global Supply Chain Managament

EPIC – ECONOMY

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Measure global market‘s belief insingle economy

• Compare FDI inflow & outflow overtime

• Indirect Investments

Foreign Direct Investment(FDI)

• Devaluation: reduces trade deficit

• Depreciation: improves exportprice attractiviness

• Comfort level for investmentthrough stability

Exchange Rate Stability &Consumer Price Inflation

ECONOMY (3/4) 11

Page 12: Global Supply Chain Managament

EPIC – ECONOMY

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Transportation and logistics coststend to be affected

• Bottle-necks may occur

• Imbalance is difficult to tackle

Balance of Trade

ECONOMY (4/4) 12

Page 13: Global Supply Chain Managament

EPIC – POLITICS (1/3)

• Ease of doing business

• Bureaucracy & corruption

• Legal & regulatory framework

• Tax & tariff barriers

• Risk of political instability

• Protection of property rights

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

POLITICS (1/3) 13

Page 14: Global Supply Chain Managament

EPIC – POLITICS (2/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Drives cost and time efficiences onvarious levels

• Bureaucracy and corruption hinderssmooth flow of goods and services

Ease of Doing Business

• Governs the level of governmentoversight and any accompanyingrestrictions on doing business & supplychain investment

• Influences investment decisions

Legal & RegulatoryFramework

POLITICS (2/3) 14

Page 15: Global Supply Chain Managament

EPIC – POLITICS (3/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Affects long-term viability of investmentand business model

• Measures economic distress andsocial unrest

• Differs from stability of government

Political Stability

• Safeguards company‘s efforts toinnovate

• Absence puts brand image at risk

Intellectual Property Rights

POLITICS (3/3) 15

Page 16: Global Supply Chain Managament

EPIC – INFRASTRUCTURE(1/3)

• Physical infrastructure

• Energy infrastructure

• Telecommunications infrastructure

• Influences how SCM takes place

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INFRASTRUCTURE(1/3)

Telecommunications infrastructure

Influences how SCM takes place

16

Page 17: Global Supply Chain Managament

EPIC – INFRASTRUCTURE(2/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Consists of road, rail, air and water

• Highly dependent on country specifics

Transportation Infrastructure

• Relates to generation and transmissionof electricity

• Measures interruptions of powersupply and voltage fluctuations

Utility Infrastructure

INFRASTRUCTURE(2/3) 17

Page 18: Global Supply Chain Managament

EPIC – INFRASTRUCTURE(3/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Measures how well information iscommunicated

• Measured by number of telephonelines and number of internetsubscriptions

• Need to be scaled on per capita basis

Telecommunication &Conncetivity Infrastructure

INFRASTRUCTURE(3/3) 18

Page 19: Global Supply Chain Managament

EPIC – COMPETENCE

• Labor productivity

• Labor relations

• Availability of skilled labor / level ofeducation

• Influences the speed of SCM

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

COMPETENCE (1/3)

Availability of skilled labor / level of

19

Page 20: Global Supply Chain Managament

EPIC – COMPETENCE (2/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Determines effectiveness of offshoring

• Metrics: productivity, cooperation, skillset

Labor Relations

• Understanding costs of quality is key

• Sustain initiatives

• Ability to solve problems

Education Levels for LineStaff and Management

COMPETENCE (2/3) 20

Page 21: Global Supply Chain Managament

EPIC – COMPETENCE (2/3)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

• Measures effectiveness of variouslogistics functions within a country

Logistics OperationalCompetence

• Efficiency of clearance proceduresused by customs authorities

• Existence of proper security controls toensure protection of internal market

Customs & Security

COMPETENCE (2/3) 21

Page 22: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 22

Page 23: Global Supply Chain Managament

Variables

EPIC - ASSESSMENTWHAT‘S NEXT ?

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Data Sources

Decision Uses

ASSESSMENT 23

Page 24: Global Supply Chain Managament

E

I

EPIC - WEIGHTINGWHAT‘S NEXT ?

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

P

C

WEIGHTING 24

Page 25: Global Supply Chain Managament

G L O B A L S U P P L Y C H A I N

Unit 2: First Steps

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A

C H A I N M A N A G E M E N T

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A N Y | JAN | 1 6 V 2 . 1

Page 26: Global Supply Chain Managament

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 26

Page 27: Global Supply Chain Managament

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 27

Page 28: Global Supply Chain Managament

EPIC -

04

01

03Infrastructure

Competence

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INTRO01

02

03

Economics

Politics

28

Page 29: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 29

Page 30: Global Supply Chain Managament

Variables

EPIC - ASSESSMENT

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Data Sources

Decision Uses

ASSESSMENT 30

Page 31: Global Supply Chain Managament

EPIC - SOURCES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

SOURCES 31

Page 32: Global Supply Chain Managament

EPIC - SOURCES

https://www.wto.org/english/res_e/res_e.htm

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

SOURCES

https://www.wto.org/english/res_e/res_e.htm

32

Page 33: Global Supply Chain Managament

EPIC - SOURCES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

SOURCES 33

Page 34: Global Supply Chain Managament

EPIC - SOURCES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

SOURCES 34

Page 35: Global Supply Chain Managament

ECONOMY -Variables

• GDP / GDP Growth

• Population Size

• Foreign DirectInvestment

• Exchange RateStability & ConsumerPrice Index

• Balance of TradeD I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

- CONNEX A

GDP / GDP Growth

Stability & Consumer

Data Sources

• CIA World Book, WTO

• CIA World Book, NationalCensus Bureaus

• UNCTAD FDI AttractionIndex

• CIA World Factbook,National Central Banks,National Chambers

35

Page 36: Global Supply Chain Managament

ECONOMY -Variables

• GDP / GDP Growth

• Population Size

• Foreign DirectInvestment

• Exchange RateStability & ConsumerPrice Index

• Balance of Trade

Decision Uses

• Investments

• Investments, SalesPotential

• Investment,Manufacturing, ExportBusiness

• Investors, ImportBusiness, Trade (int. /ext.)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

- CONNEX BDecision Uses

Investments

Investments, SalesPotential

Investment,Manufacturing, ExportBusiness

Investors, ImportBusiness, Trade (int. /ext.)

36

Page 37: Global Supply Chain Managament

POLITICS -Variables

• Ease of doingbusiness

• Legal & regulatoryframework

• Risk of politicalstability

• Protection of propertyrights

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

CONNEX A

Legal & regulatory

Protection of property

Data Sources

• World Bank

• Deloitte InternationalTax Survey, Rule ofLaw Matrix

• Economist PoliticalInstability Index

• International PropertyRights Index, HKOrdinance

37

Page 38: Global Supply Chain Managament

POLITICS -Variables

• Ease of doingbusiness

• Legal & regulatoryframework

• Risk of politicalstability

• Protection of propertyrights

Decision Uses

• Retail Store Location,Supply Network,Sourcing and ManuLocation

• R&D Center,Innovation Hubs,Trade & CommercePioneers

• Banking & Finance

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

CONNEX BDecision Uses

Retail Store Location,Supply Network,Sourcing and ManuLocation

R&D Center,Innovation Hubs,Trade & CommercePioneers

Banking & Finance

38

Page 39: Global Supply Chain Managament

INFRASTRUCTUREVariables

• TransportationInfrastructure

• Utility Infrastructure

• Telecommunication &Connectivity

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INFRASTRUCTURE - A

Utility Infrastructure

Telecommunication &

Data Sources

• World EconomicForum

• CIA World Factbook

• Eurostat, RegionalStatistic Bureaus

• World Bank

• IMF, OECD Library

39

Page 40: Global Supply Chain Managament

INFRASTRUCTUREVariables

• TransportationInfrastructure

• Utility Infrastructure

• Telecommunication &Connectivity

Decision Uses

• Different RegionsPreferrableDifferent Purposes(Producing, Sourcing,Retail, Selling)

• Connectivity,Determines DecisionsOn Outsourcing,Offshoringetc.

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INFRASTRUCTURE - BDecision Uses

Different RegionsPreferrable ForDifferent Purposes(Producing, Sourcing,Retail, Selling)

Connectivity,Determines DecisionsOn Outsourcing,Offshoring, Insourcingetc.

40

Page 41: Global Supply Chain Managament

COMPETENCEVariables

• Labor Relations

• Education Level

• LogisticsCompetence

• Customs & Security

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

COMPETENCE - CONNEX A

Customs & Security

Data Sources

• WEF GCI, NationalLabor Statistics,Eurostat, OECD

• National Bureaus ForEducation

• WTO PerformanceIndex

• Defense Offices

41

Page 42: Global Supply Chain Managament

COMPETENCEVariables

• Labor Relations

• Education Level

• LogisticsCompetence

• Customs & Security

Decision Uses

• Sourcing,Manufacturing, Retail

• E-Logistics

• Six Sigma, TotalQuality

• Just In TimeManufacturing,Express Logistics

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

COMPETENCE - CONNEX BDecision Uses

Sourcing,Manufacturing, Retail

commerce,Logistics

Six Sigma, TotalQuality Managament

Just In TimeManufacturing,Express Logistics

42

Page 43: Global Supply Chain Managament

E P

I C

EPIC - WEIGHTING

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

P POLITICSEase of Doing Business |Bureaucracy & Corruption |Legal & Regulation | Tax &Tariffs | Stability

E ECONOMYEconomic Output | PotentialGrowth | Attract FDI | SteadyROI

I INFRASTRUCTUREPhysical | Energy | Telecom

C COMPETENCEProductivity | Labor Relations |Availabily of Skilled Labor |Level of Training & Education

WEIGHTING 43

Page 44: Global Supply Chain Managament

15%POPULATION

SIZE

25%

ECONOMY30% of total EPIC score

EXCHANGERATE

EPIC - WEIGHTING

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

45%

ECONOMICOUTPUT

35%

FDI

20%

5%

ECONOMYtotal EPIC score

WEIGHTING

TRADE

44

Page 45: Global Supply Chain Managament

15%

FRAMEWORK

POLITICS20% of total EPIC score

INTELLECTUALPROPERTY

EPIC - WEIGHTING

EASE OF DOINGBUSINESS

35%

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

45%POLITICALSTABILITY

25%LEGAL

FRAMEWORK

35%

POLITICStotal EPIC score

INTELLECTUAL

WEIGHTING 45

Page 46: Global Supply Chain Managament

15%

PHYSICAL

50

INFRASTRUCTURE30% of total EPIC score

EPIC - WEIGHTING

CONNECTIVITY

25%

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

45%ENERGY

25%PHYSICAL

50%

INFRASTRUCTUREtotal EPIC score

WEIGHTING 46

Page 47: Global Supply Chain Managament

10%

COMPETENCE

COMPETENCE20% of total EPIC score

CUSTOMS ANDSECURITY

EPIC - WEIGHTING

LABORRELATIONS

25%

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

45%EDUCATION

LEVELS

25%LOGISTICS

COMPETENCE

40%

COMPETENCEtotal EPIC score

AND

WEIGHTING 47

Page 48: Global Supply Chain Managament

A global supply chain requires asound decision making ground

which is composed ofinterdisciplinary, interdependent

and international layers

IDEA

EPIC – REVISED

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

The EPIC approach provides asystematic and structures way toevaluate the global terrain withrespect to an organizations(prospective) supply chainactivity

RESULT

REVISED 48

Page 49: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 49

Page 50: Global Supply Chain Managament

East Asia is a geographic regionthat encompasses the ancientcultural and economic centres ofChina, Japan, and the Koreas.

East Asia

The countries of Central andEastern Europe are all thecountries covered by the formerEastern bloc as any otherEuropean country that does notbelong to Western Europe.

Central & Eastern Europe

EPIC - CASESWHAT‘S NEXT ?

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Western Europe is the regioncomprising the westerly countriesof Europe.

Western Europe

North and Central America standfor the countries USA; Canadaand Mexico with its adjacentcountries and islands that doesnot belong to any other region.

North & Central America

CASES 50

Page 51: Global Supply Chain Managament

G L O B A L S U P P L Y C H A I N

Unit 3: Next Steps

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A

C H A I N M A N A G E M E N T

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A N Y | JAN | 1 6 V 2 . 1

Page 52: Global Supply Chain Managament

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 52

Page 53: Global Supply Chain Managament

WHY AM I

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

AM I HERE? 53

Page 54: Global Supply Chain Managament

EPIC -

04

01

03Infrastructure

Competence

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INTRO01

02

03

Economics

Politics

54

Page 55: Global Supply Chain Managament

Variables

EPIC - ASSESSMENT

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Data Sources

Decision Uses

ASSESSMENT 55

Page 56: Global Supply Chain Managament

E P

I C

EPIC - WEIGHTING

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

P POLITICSEase of Doing Business |Bureaucracy & Corruption |Legal & Regulation | Tax &Tariffs | Stability

E ECONOMYEconomic Output | PotentialGrowth | Attract FDI | SteadyROI

I INFRASTRUCTUREPhysical | Energy | Telecom

C COMPETENCEProductivity | Labor Relations |Availabily of Skilled Labor |Level of Training & Education

WEIGHTING 56

Page 57: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 57

Page 58: Global Supply Chain Managament

East Asia is a geographic regionthat encompasses the ancientcultural and economic centres ofChina, Japan, and the Koreas.

East Asia

The countries of Central andEastern Europe are all thecountries covered by the formerEastern bloc as any otherEuropean country that does notbelong to Western Europe.

Central & Eastern Europe

EPIC - CASES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Western Europe is the regioncomprising the westerly countriesof Europe.

Western Europe

North and Central America standfor the countries USA; Canadaand Mexico with its adjacentcountries and islands that doesnot belong to any other region.

North & Central America

CASES 58

Page 59: Global Supply Chain Managament

C1: IKEA TO RUSSIA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C1: IKEA TO RUSSIA 59

Page 60: Global Supply Chain Managament

Import necessary – butlocal sourcing could be

developed

Logistics

IKEA came to Russia whenall other international

companies decided to leaveRussia

Background

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

From 2000 to 2008 IKEAinvested 2.5 billion EUR inRussia and became a top

10 investor in Russia

Investment

Service growing middleclass with limited financialmeans

Value Proposition60

Page 61: Global Supply Chain Managament

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

I | 30%Physical

Infrastructure (Air,Rail, Railroad,

Waterways) | Energy| Telecom

E | 30%Economic Output |Potential Growth |

Attract FDI | SteadyROI

EPIC Analysis 61

C | 20%Productivity | LaborRelations |Availability of SkilledLabor | Level ofTraining & Education

P | 20%Ease of DoingBusiness |Bureaucracy &Corruption | Legal &Regulation | Tax &Tariffs | Stability

EPIC Analysis

Page 62: Global Supply Chain Managament

C2: COMAC TO W

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C2: COMAC TO W-EUR 62

Page 63: Global Supply Chain Managament

The Commercial Aircraft Corporation ofChina, Ltd. ("Comac") is a Chinese state-owned aerospace manufacturer establishedon 11 May 2008 in Shanghai. The companyhas a registered capital of USD 2.7 billion asof May 2008. This government-ownedcorporation is designing and will eventuallybuild large passenger aircraft with a capacityof over 150 passengers to reduce thecountry's dependency on Boeing and Airbus.Therefore, China invests more money thanthe EU did when Airbus was formed.

In June 2011 COMAC and Irish low-costairline Ryanair signed an agreement to co-operate on the development of the C919, a200-seat single-aisle aircraft which willcompete with the Boeing 727.

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

May 2008 Foundation

Dec 2009Start C919

2018 First delivery /commercial roll-out of C919

Nov 2010 C919Presentation of C919prototype on airshow

63

Page 64: Global Supply Chain Managament

COUNTRY ORDERS

Thailand 10

USA 20

IrelandCooperation

Agreement (COMAC &RYANAIR)

USA

IRELAND

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

EPIC Analysis

COUNTRY ORDERS

China ~ 500

India ~ 10

(COMAC & Europe ???

THAILAND

IRELAND

CHINA

64EPIC Analysis

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C3: TESLA TO E

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C3: TESLA TO E-EUR 65

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Disruptive understandingof mobility of the 21st

century

Technology

Create most compelling carcompany by driving the

world‘s transition to electricvehicles

Vision / Mission

Aim is to leverage theunique benefit of

electric powertrain

Costs

SpiritRelentlessInnovation

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Nikola TeslaSerbian scientist who created the AC

power system and is the „father ofradio“, re-invented the dynamo andinvented the induction motor. As an

old man he lived in poverty

Create most compelling carcompany by driving the

world‘s transition to electricvehicles

Vision / Mission

Integration is key todeliver a system that isgreater than sum-of-

parts

IP & PP

66

Page 67: Global Supply Chain Managament

TESLA spend severalyears to understandthe large market

before they entered.

ANALYSE

01

TESLA‘s vision: create the most compelling car company ofthe 21st century by driving the world‘s transition to electricvehicles.

“Second place should need a telescope to see us”

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

TESLA spend severalyears to understandthe large market –

before they entered.

From battery cells to the gearbox more than 250 patentswere awarded to TESLA

delivering a comprehensive,yet proprietary technology

EXECUTE

02

A culture of relentless& disruptive productapproach mixed with

an re-inventedcustomer experience

IMPLEMENT

03

TESLA‘s vision: create the most compelling car company ofthe 21st century by driving the world‘s transition to electric

“Second place should need a telescope to see us” –Elon Musk

67

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C4: SBERBANK TO USA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C4: SBERBANK TO USA 68

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

01

Founded in 1841 Sberbank hasfocused on domestic banking thatcreates > 95% of revenues

02

With a focused culture of >17.500branches and 200.000 employeesin Russian Federation Sberbank isready to open up to internationalcultures

03

A unique position in growingdomestic markets and as a linkbetween Europe, Asia and theMiddle East. Sberbank facesmultiple opportunities

69

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

01

02

The Russian banking market is one of the mostattractive among high growth markets in terms ofrevenues and profitability. The US banking secto

provides the largest net revenues world

70

05

03

04

The Russian banking market is one of the mostattractive among high growth markets in terms ofrevenues and profitability. The US banking sector

provides the largest net revenues world-wide and is yetone of the most regulated one.

Growth Meets Attractiveness

Page 71: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 71

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G L O B A L S U P P L Y C H A I N

Unit 4: The Challenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A

C H A I N M A N A G E M E N T

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S ) , M A N N H E I M | G E R M A N Y | JAN | 1 6 V 2 . 1

Page 73: Global Supply Chain Managament

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

WHY AM IAM I HERE? 73

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EPIC -

04

01

03Infrastructure

Competence

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

INTRO01

02

03

Economics

Politics

75

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Variables

EPIC - ASSESSMENT

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Data Sources

Decision Uses

ASSESSMENT 76

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E P

I C

EPIC - WEIGHTING

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

P POLITICSEase of Doing Business |Bureaucracy & Corruption |Legal & Regulation | Tax &Tariffs | Stability

E ECONOMYEconomic Output | PotentialGrowth | Attract FDI | SteadyROI

I INFRASTRUCTUREPhysical | Energy | Telecom

C COMPETENCEProductivity | Labor Relations |Availabily of Skilled Labor |Level of Training & Education

WEIGHTING 77

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East Asia is a geographic regionthat encompasses the ancientcultural and economic centres ofChina, Japan, and the Koreas.

East Asia

The countries of Central andEastern Europe are all thecountries covered by the formerEastern bloc as any otherEuropean country that does notbelong to Western Europe.

Central & Eastern Europe

EPIC - CASES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Western Europe is the regioncomprising the westerly countriesof Europe.

Western Europe

North and Central America standfor the countries USA; Canadaand Mexico with its adjacentcountries and islands that doesnot belong to any other region.

North & Central America

CASES 78

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

79

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Reflect YourPerformance /

Individual Performance

What Will YouUse Next Time

What Are YourKey Take-Aways

EPIC – LESSONS

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Your TeamPerformance / Your

Individual Performance

What Worked BestAnd Second Best

What Will I TellOther People

LESSONS LEARNED80

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2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 81

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C1: SWECO TO CHINA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C1: SWECO TO CHINA

82

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

83

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Population (bn.) Urbanization

´06 ´13 ´06

1.400

1.300

0

The Chinese government knows that ifthis bubble is allowed to burst the marketfor residential and commercial properties

will fall into huge losses directlyimpacting the entire banking sector.

PolicyChina‘s fast-developing poses challenges

on the construction sector. In the pastbuilding investment projects are beingfinanced for the sake of sector / GDP

growth rather than to meet real demand.

Economy

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

100%

50%

0

Construction Sector in ChinaAn overblown market ?

Urbanization Flats sold (mln.)

06 ´13 ´06 ´13

The Chinese government knows that ifthis bubble is allowed to burst the marketfor residential and commercial properties

will fall into huge losses directlyimpacting the entire banking sector.

PolicyAccess to better education for a broader

population has led to higher livingstandards. Real per capita disposable

household income has doubled over thelast 10 years.

Competence

8410

5

0

Construction Sector in China –An overblown market ?

Page 85: Global Supply Chain Managament

theUS

prices in China are50% lower than in

Consumer

1.2trillionUSD

spent $ 1.2 trillionfor construction in

2012

China

41%

of every dollarspent on

construction in theAsia-Pacific were

spent in China

41 cents

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

½billion

past 30 years,more than 500million Chinese

have moved to thecities.

Over the

50%

500

income is in partdue to the shortage

of blue collarworkers whichcame to the

economic forefrontin 2010. Employershave been forced

to offer higher pay.

The rise of 85owners devote 30 -50% of their money

to mortgagerepayments

Avrg. home

Page 86: Global Supply Chain Managament

C2: AMERICAN WATER TOW-EUR

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C2: AMERICAN WATER TOEUR

86

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

87

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

At T Minus 16 Seconds in the launch sequence of NASA‘sspace shuttlethe release of water from a 290stands next to theCenter.

The water has nothing to do with damping the heat or fire fromthe shuttle‘s motor. It acts as a sound suppressant. Theshuttles rockets are so loud that without the soundcushion of water, the roar from the engines would bounce offthe metal and concrete base of the pad and seriously harm thespacecraft.

In the United States and the developed world, we have spentthe last hundred years in a kind of aquatic paradise: our waterhas been abundant, safe and cheap.

The good news is that most of what we know about waterinsn’t really wrong, because we don’t know that much. Thebad news is that the invisibility of water in our lives isn’t goodfor us, and isn’t good for water

Wateryou don‘t understand 88

At T Minus 16 Seconds in the launch sequence of NASA‘sspace shuttle programme the launch control computers triggerthe release of water from a 290-foot-high water tank thatstands next to the launchpad at Florida‘s Kennedy Space

The water has nothing to do with damping the heat or fire fromthe shuttle‘s motor. It acts as a sound suppressant. Theshuttles rockets are so loud that without the sound-absorbingcushion of water, the roar from the engines would bounce offthe metal and concrete base of the pad and seriously harm thespacecraft.

In the United States and the developed world, we have spentthe last hundred years in a kind of aquatic paradise: our waterhas been abundant, safe and cheap.

The good news is that most of what we know about waterreally wrong, because we don’t know that much. The

bad news is that the invisibility of water in our lives isn’t goodfor us, and isn’t good for water

Water – you can‘t appreciate whatyou don‘t understand

Page 89: Global Supply Chain Managament

DIVERSEAmerican Water is engaged inprovoding water andwastewater utility services to15 million people in over 47states of the US.

EXPENSIVEWater policies are driven byboth member states and theEuropean Union making itsprovisions costly and timely tocomply with

COMPLEXAmerican Water divides itsbusiness in two segments:regulated business andmarket-based operations.

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

15Million

DIVERSEAmerican Water is engaged in

water andwastewater utility services to15 million people in over 47

500Billion EUR

EXPENSIVEWater policies are driven byboth member states and theEuropean Union making itsprovisions costly and timely to

47States

89

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C3: EBAY TO CHINA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C3: EBAY TO CHINA

90

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

91

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In China ebay experienced severecompetition from a local competitor

Alibaba Group was founded in 1999 by 18 people led by Jack Ma, a former teacher fromHangzhou, China. Since launching its first website helping small Chinese exporters,

manufacturers and entrepreneurs to enter the international market,into a global leader in online and mobile commerce.

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

experienced severecompetition from a local competitor

Group was founded in 1999 by 18 people led by Jack Ma, a former teacher fromHangzhou, China. Since launching its first website helping small Chinese exporters,

manufacturers and entrepreneurs to enter the international market, Alibaba Group has growninto a global leader in online and mobile commerce.

92

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Cloudstorage

C2Ce-commerce

Mobilemessaging

Carsharing

B2Ce-commerce

93

Cloudservices

Onlinepayments

Page 94: Global Supply Chain Managament

C4: SOLARIS TO USA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

C4: SOLARIS TO USA

94

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

95

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Gives AccessAccess to public

transportation providesaccess to job opportunities

for millio Amercans

Saves MoneyThe average household

spends 17.5 cents of every$ on transportation, the

largest expenditure afterhousing

96

Impacts Your CommunityMore than 1.1 million jobs arecreated or sustained per yearbecause of public transportation

Saves Fuel – ReducesCongestionAmericans save 865 millionhours in travel time and 450million gallons of fuelannually in congestionreduction alone

Page 97: Global Supply Chain Managament

PUBLIC TRANSPORTATION MATTERS

$1communities invest inpublic transportation

generates $ 4 in economicreturn

10.7billion trips on publictransportation were

taken by Americans in2013

7,100organizations

provided publictransportation in the

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

PUBLIC TRANSPORTATION MATTERS

7,100organizations

provided publictransportation in the

U.S.

400 kpeople were employed in publictransportation in a $ 58 billion

industry

97

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C5: M-PESA

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

PESA TO INDIA

98

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D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

99

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M-Pesa (M for mobile, pesa is Swahili for money)is a mobile phone-based money transfer,financing and microfinancing service, launched in2007 by Vodafone for Safaricom and Vodacom,the largest mobile network operators in Kenyaand Tanzania

Banking innovationfor the developingworld

The service enables its users to: deposit and withdrawmoney, transfer money to other users and non-pay bills, purchase airtime and transfer moneybetween the service and a bank account. Expansionplans cover banking services like interest-bearingaccounts, loans, and insurance.

The service enables its users to: deposit and withdraw-users,

and transfer moneyExpansionbearing

M-Pesa customers candeposit and withdrawmoney from a networkof agents that includesairtime resellers andretail outlets acting asbanking agents.

A winning strategy:customer value

Page 101: Global Supply Chain Managament

M-Pesa And The Rise Of The Global MobileMoney MarketSince then, M-Pesa has undergone explosive growth: in 2013, a staggering 43 percent ofKenya’s GDP flowed through M-Pesa, with over 237 million personthe first quarter of 2015, there were over 900 million mobile subscribers in Africa, and 3.7billion in Asia.

2007 20130

43%2007

And The Rise Of The Global Mobile

has undergone explosive growth: in 2013, a staggering 43 percent of, with over 237 million person-to-person transactions. In

the first quarter of 2015, there were over 900 million mobile subscribers in Africa, and 3.7

2014 2015

237MILLION

4.6BILLION

Page 102: Global Supply Chain Managament

2

3

Introductionof EPIC

analysis andweighting

EPIC – NEXT

EPICchallenge

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

Introductionto EPICstructure

START

FINISH

EPIC inaction

NEXT STEPS 102

Page 103: Global Supply Chain Managament

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

NEXT:PRESENTATIONS

NEXT: YOURPRESENTATIONS

103

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Exam

20% (trade)

GRADING

Presentation40% (I / T)

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

ClassParticipation

10%

START

FINISH

GRADING 104

„TheChallenge“30% (I / T)

Bonus

5% Dropbox Keeper

5% Dropbox Class

Page 105: Global Supply Chain Managament

READING

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

READING 105

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NOTES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

NOTES 106

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NOTES

D I P L . J U R . J A N N I C O L A I H E N N E M A N N B . E N G . ( H O N S )

NOTES 107