Market-Driven Management and Global Supply Chain

Globalization and over-supply have pushed companies to face new competitive challenges. In such a competitive space, a new approach in managing the supply chains and the consequent optimization of material flows and intangible assets plays a crucial role for improving long-term performances of both individuals belonging to the chain and the entire supply chain. Companies are part of a systematic network of companies and an efficient management of the network allows to reduce the time-to-market for launching new products, to increase the ability to collaborate with value-chain partners and the ability to generate greater value for the customers.Market-Driven Management; Global Markets; Global Supply Chain; Global Sourcing; Pull/Push Supply Chain; Demand-Driven Supply Network

Paradigmenwechsel im Global Sourcing von Getriebekomponenten

The paradigm shift in global sourcing of transmission components is achieved by developing a part-classification methodology based on a new model of core-competence analysis. The result is shaped by the empirical data analysis of the core-competence and cost-structure analysis. This paradigm shift is defined by a move from local sourcing of the European automotive industry to global sourcing, shaped by modern management philosophies, at the beginning of the new millennium, and then back to “Local for Local” sourcing, due to bad experiences with the quality performance of low cost country suppliers. The latter leads to massively untapped potential, through an intensive analysis of potential global sourcing-capable commodities. The goal is to create a portfolio of optimal global-sourcing-capable components, thus responding to the precarious changes in market structures throughout the industry in global purchasing in recent years. However, no overarching, general, commodity-independent rules can be established; rather, a deep analysis of cost structures and technological requirements is required. This initial situation requires that the structures of the most important commodities be examined in detail using a core competence and cost-structure analysis to develop optimal sourcing strategies for these commodities and derive an optimal and strategically-oriented purchasing organisation from them, in order to contribute to a significant improvement in the Group's earnings. With regard to the scope, it should be noted that this method is generally suitable for purchased parts in the automotive industry, but the basic data comes from tier 1 transmission suppliers or OEMs with their own transmission production. The basic methodology as well as the method developed here is widely applicable. However, the definition of the individual and relevant parameters is primarily characterised by specific data for transmission components and the underlying manufacturing processes

Local sourcing of multinational enterprises in China

Purpose – Local sourcing from indigenous firms by multinational enterprises (MNEs) is an important channel through which the former may benefit from the positive externalities generated by the latter. The purpose of this study is to analyze the extent and determinants of local sourcing of MNEs. Design/methodology/approach – Employing a survey dataset covering 493 multinational subsidiaries in China during 1999-2005, this paper applies the two-limit Tobit model. Findings – It is found that an MNE's local sourcing decision is influenced by its strategies, characteristics such as size and learning ability and country-of-origin. More specifically, export-orientation strategy, joint venture strategy and networking with local suppliers positively affect local sourcing. Small and autonomous subsidiaries tend to source more locally. Age has a non-linear effect. The importance of these determinants varies with regions. Research limitations/implications – Aiming at capacity building and competitiveness of indigenous firms, the Chinese government has initiated local content requirement. This study shows that such policy intervention could be counterproductive. The creation of a more competitive business environment by the government could promote more linkages. Originality/value – Given its critical role in economic development, local sourcing by MNEs has attracted much attention. Only limited research has been carried out on FDI linkage effects in China, and the location effect on FDI linkages has not been examined. This study aims to fill the gap by using Chinese survey data

Design for Low-Cost Country Sourcing: Motivation, Basic Principles and Design Guidelines

Organised by: Cranfield UniversityNot every product can be successfully sourced in low-cost countries. Disadvantageous cost structures or extremely complex workpiece designs are the most frequent reasons for failures. A design that has been tailored to low-cost country sourcing offers the possibility of increasing potentials while reducing risks and costs at the same time. The wbk Institute of Production Science at the Universität Karlsruhe (TH) developed a new approach which ensures that the product design meets the requirements of the supplier. This paper identifies the factors influencing the design, deduces basic principles and illustrates guidelines for an adapted product design.Mori Seiki – The Machine Tool Compan

Information Systems Skills Differences between High-Wage and Low-Wage Regions: Implications for Global Sourcing

Developing Information Systems (IS) skills for a company’s workforce has always been challenging, but global sourcing growth has caused the determination of needed IS skills to be more complex. The increased use of outsourcing to an IS service provider and from high-wage regions to low-wage regions has affected what IS skills are required globally and how to distribute the workforce to meet these needs. To understand what skills are needed in locations that seek and those that provide outsourcing, we surveyed IS service provider managers in global locations. Results from 126 reporting units provide empirical evidence that provider units in low-wage regions value technical skills more than those in high-wage regions. Despite the emphasis on commodity skills in low-wage areas, high- and low-wage providers value project management skills. Low-wage regions note global and virtual teamwork more than high-wage regions do. The mix of skills and the variation by region have implications for domestic and offshore sourcing. Service providers can vary their staffing models in global regions which has consequences for recruiting, corporate training, and curriculum

Contextual factors, knowledge processes and performance in global sourcing of IT services: An investigation in China

Copyright @ 2011, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Reuse of this article has been approved by the publisher.In this paper, the authors explore the influences of two major contextual factors—supplier team members’ cultural understanding and trust relationship—on knowledge processes and performance in global sourcing of IT services. The authors discuss a joint investigation conducted by a cross-cultural research team in China. Cultural understanding is measured by individualism with guanxi and mianzi, two Chinese cultural concepts, and trust relationship is measured by adjusting trust, a notion reflecting the uniqueness of the Chinese people. Knowledge processes are characterized by knowledge sharing. Performance is measured by the outcomes of global sourcing, which is represented by product success and personal satisfaction. Data are collected in 13 companies in Xi’an Software Park, with 200 structured questionnaires distributed to knowledge workers. The results of quantitative data analysis indicate that cultural understanding influences trust relationship greatly, as well as knowledge sharing and performance in global sourcing of IT services. Trust relationship significantly impacts knowledge sharing, whereas trust relationship and knowledge sharing have no impact on performance. This study suggests that special aspects of the Chinese context have significant direct impacts on knowledge processes while no direct and immediate impacts on performance in global sourcing of IT services.National Natural Science Foundation of China, Program for Humanity and Social Science Research, Program for New Century Excellent Talents in University in China and Brunel University's Research Development Fund

Job Creation Through Building the Field of Impact Sourcing

Provides an overview of the field of impact sourcing - using business process outsourcing to create sustainable jobs for the lowest-income populations. Offers case studies, examines models, outlines challenges, and presents an action agenda