[국제경영론] Global Production and Supply Chain Management (2)

국제경영론 International Business

Chapter. Global Production and Supply Chain Management (2) 

Global sourcing & purchasing

• 생산과 판매 단계 → 각 단계에서의 sourcing, production, sales 위치
  • sourcing of raw materials, parts, and components
  • manufacture and assembly of components and final products
  • sale of products

⇒ 어디서 소싱하고, 생산하고, 판매할지 !

• sourcing
  • Sourcing : process of a firm having inputs (supplied from outside suppliers (both domestic and foreign)) for the production process 생산과정에 필요한 인풋들을 공급자로부터 소유하는 과정
    • Domestic sourcing 장점: language, culture, currency, tariffs 등의 문제가 없음
    • Foreign sourcing 장점: reduce costs and improve quality, among other things
• production outsourcing : MNC는 최종 제품에 들어가는 부품을 만들까 or 아웃소싱할까? & 국내에서 할까 or 해외에서 할까?
  • Make-or-buy decisions (in-house or outsource it to another firm)
    & decide whether activities should be carried out in the home market or abroad
  • advantages of make : make in-house (vertical integration)
    • 목적: (1)quality control, (2)limited suppliers, (3)excess capacity, (4)having control, (5) assurance of continual supply, (6) industry drivers
    1. lower cost : 다른 회사보다 더 효율적으로 생산할 수 있을 때
    2. facilitates investments in highly specialized assets : when substantial investments in specialized assets (assets whose value is contingent upon a particular relationship persisting) are required to manufacture a component
    3. protecting proprietary tech : 독점, 우월기술,,→ in house → maintain control over the technology
    4. facilitates scheduling of adjacent processes : 인접 프로세스의 coordination, planning 등을 보다 쉽게 할 수 있음 (manufacturer에게 큰 영향력, 통제)
  • advantages of buy
    • 목적: (1) multisource policy (2) lack of expertise (3) supplier competency (4) small volumes (5) brand preference (6) nonessential item
    1. Strategic Flexibility : 상황에 따라 공급업체 간 주문을 전환할 수 있는 유연성 (환율, 무역장벽 등의 변화가 공급원의 매력을 변화시킴,, 중요한 능력 !!)
    2. Lower Costs: Firms can avoid challenges involved with coordinating and controlling additional subunits, lack of incentive associated with internal suppliers, the difficulties with setting appropriate transfer prices
    3. Offsets : capture more orders from suppliers’ countries

outsourcing terms and options

• outsourcing : MNC buys from one of its suppliers that produces them somewhere else =buy (opposite insourcing)
• insourcing : MNC decides to stop outsourcing and instead starts to produce them internally =make
• offshoring : MNC buys from one of its suppliers that produces them somewhere globally (outsourcing outside MNC’s home)
• nearshoring : MNC transfers business to suppliers in a nearby country, shares a border with home country
• co-sourcing : acquiring same set of inputs both by buying from external suppliers and carrying out in house production
• multi-sourcing : raw materials are contracted to various suppliers instead of using single (mono) sourcing
• dual-sourcing : similar to multi sourcing (sourcing from multiple suppliers)
• bi-sourcing : similar to co-sourcing (sourcing from multiple sites of a single supplier)

 

procurement: overall process of sourcing and purchasing

• procurement, sourcing, and purchasingpart of procurement : sourcing is initial state → purchasing is last stage
  • Procurement: covers a complete range of activities from identifying the need of goods to their allotment in production.
  • Sourcing : finding a source from where the goods can be procured
  • Purchasing: transaction-oriented function is only restricted to receiving and making payments
  • Supply chain : infrastructure needed to get a specific product to the company and, subsequently, the customers.
  • Logistics: movement, storage, and operations around the utilization of purchased goods

 

 

Global logistics

• core activities performed in logistics
  1. global distribution center management
  2. inventory management
  3. packaging and materials handling
  4. transportation
  5. reverse logistics
  • global distribution center management
    • Global distribution center: A facility that positions and allows customization of products for delivery to worldwide wholesalers or retailers or directly to consumers anywhere in the world
    • These centers are the foundation of global supply network because they allow either a single location or satellite warehouses to store quantities and assortments of products and allow for value-added customization
  • inventory management (아마존은 너가 샴푸가 떨어졌는지 너보다 더 잘 안다)
    • decision making process regarding the raw materials, work in process, and finished goods inventory for an MNC
  • packaging and materials handling
    • packaging can be divided into (3 types of packaging)
      • Primary packaging holds the product itself
      • Secondary packaging is designed to contain several primary packages
      • Transit packaging is used when primary and secondary packages are assembled for transportation
      • Packaging is intended to perform, protect, and inform
  • transportation
    • Transportation is the movement of raw material, component parts, and finished goods throughout the global supply chain
    • Transportation is the largest percentage of any logistics budget
    • Transport mode influences rates: ocean is the least expensive and air is the most expensive
  • reverse logistics
    • process of moving inventory from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal
    • ultimate goal is optimize the after-market activity or make it more efficient