Tài liệu tiếng Anh thương mại quản lý Chapter 12 Global supply management

Tài liệu tiếng Anh thương mại quản lý Chapter 12 Global supply management

Chapter 12

Global Supply

Management

Key Concepts

• Global Management Perspective

• Supply Channels

Key Concepts

• Direct Suppliers

• Currency And Payment Issues

Quotes on Global Thought

the world”

» Socrates

world, leading companies perceive competition

as global and are moving to implement an

integrated strategy worldwide Global

competitors are learning to develop and

manufacture products that can be introduced and marketed simultaneously in many countries In

doing so, they are sourcing technology, materials, and components from sites and suppliers located throughout the world.”

» Carl R Frear, Lynn E Metcalf, and Mary S Alguire

Global Management Perspective

• Future of Global Supply Management

• Stages to Global Supply Management

• Reasons for Global Sourcing

• Potential Problems

• Questions Before Going Global

Future of Global Supply Management

• World financial markets are closely linked through 24-hour trading

• International business is no longer limited

to large multinational corporations

• Fewer marketplace differences exist

» “Westernization” of global consumer markets is occurring at a rapid rate

• Manufacturing firms in “developing”

countries have improved their capabilities

• Productivity and quality is dramatically

improving worldwide

CAPS Study

• “…much has happened to change the world of

business and supply management - more to

come.

• …the main reason for global sourcing is to

reduce costs.

• …global sourcing resulting in cost reductions of

19% and a total cost-of-ownership reduction of 12%.

• “China, India, Eastern Europe and Brazil will

continue to gain importance as sources of supply over next five years…

• …sourcing from U.S., Canadian and Western

European markets will decline.”

Stages to Global Supply Management

• Stage One: International Purchasing

- Organizations focusing on leveraging

volumes.

• Stage Two: Global Sourcing –

Organizations focused on global

opportunities.

• Stage Three: Global Supply Management- Organizations optimize supply networks.

Reasons for Global Purchasing

• Superior Quality

• Better Timeliness

• Lower Total Costs

• More Advanced Technology

• Broader Supply Base

• Expanded Customer Base

• Social and Labor Problems

• Higher Costs of Doing Business

• High Opacity

Questions Before Going Global

assembly?

defined?

competitive price and quality?

Supply Network Evaluation

efficiently facilitate ECOs when they occur?

phase out existing “in the pipeline" inventory?

responsibility?

commitment for expensive trips to the supplier?

how business and transactions are conducted?

Supply Channels

• After deciding to source globally is to

decide what supply channels to use

• The lowest price method for direct

Global Trade Intermediaries

• Import merchants

• Commission houses

• Agents or reps

Global Trade Intermediaries

• Import brokers

• Trading companies

• Subsidiaries

International Procurement Offices

• Expands buyer’s supplier base

• Allows personal contact

• Better understanding of local conditions

• On-site support

• Staffed by ex-patriates in the past, but not necessarily true today

Direct Suppliers

• Eliminating Intermediaries

• Identifying Direct Suppliers

• Qualifying Direct Suppliers

• Preparing for Direct Relations

• The Initial Meeting

Eliminating Intermediaries

• Results in lowest purchase price

beyond price

• Requires knowledge

aspects of the procurement

Identifying Direct Suppliers

to deal directly right from the start

Qualifying Direct Suppliers

• Country and regional analysis

• Financial condition

Preparing for Direct Relations

» Prepare and review specifications and drawings

» Pack samples or photos of required materials if helpful

» Clearly prepare the quality requirements

» Identify specific scheduling requirements

» Determine what % of production can be placed offshore

» Determine requirements for special packaging

» Identify likely lead times

» Develop a clear idea of the price objective

Briefing on Your Firm for the Supplier

• Information on the relevant product line

and related lines

• Actual and forecasted sales volume

• An indication of why the buying firm is

soliciting the potential global supplier's

interest (quality? price?)

The Initial Meeting

• Provide a briefing on your firm

• Provide a tour of your facility

» If the initial meeting is at the supplier’s facility, then tour the supplier’s facilities

• Meet with critical personnel

• Describe how and when the supplier’s firm would get paid

• Always remember that the potential

supplier is judging your firm at the same time

Currency and Payment Issues

• Preferred method of payment is after

receipt and inspection of the goods

• It may be customary in many countries for advance payments to be made prior to

Potential Situations in the Absence of Fixed

Case 1

• Contract was awarded for 1 million euros

• Rate of exchange was $1.00 = Eur 0.689

Case 2

• Contract is for payment in foreign

currency and the exchange rate improves

• Simplified when an intermediary or IPO

used

• Direct payments are more difficult

– Irrevocable or Revocable

– Confirmed or Unconfirmed

– Revolving or Non-revolving

• Refers to any transaction in which

payment is made partially or fully with

goods instead of money

• Countertrade links sale of a product into a foreign country and sale of goods out of that country

• Foreign governments may impose

countertrade requirements

Countertrade Definitions

with no money involved

purchases of items produced in the buying

country

» Types: direct offset and indirect offset

exchanged

» Normally involves two separate contracts

seller of turnkey plants, machinery, or other

capital equipment to accept as partial or full

payment products produced in the plants and/ or

on the capital equipment

Countertrade Advantages

• Avoiding exchange controls

• Selling to countries with inconvertible

currencies

• Marketing products in less-developed

countries

• Reducing risks with unstable currency

• Goodwill with foreign countries

• Fuller use of plant capacity

Example of Countertrade

Political And Economic Alliances

• European Union

• North American Free Trade Agreement

• MERCOSUR

• Association of Southeast Asian Nations

• Asia Pacific Economic Cooperation

European Union (EU)

• Common foreign policy

Advantages of the Euro

• Greatly Reduced Transaction Costs

• Increased Competition

• Reduced Exchange Rate Risk

• Increased Trade and Capital Movement

North American Free Trade Agreement

• U.S., Canada, Mexico

• Original Goals of NAFTA

Closing Remarks

• With respect to global supply management, supply professionals must learn to:

» Develop a global supply management view

» Learn to deal with changing global

environments

» Deal with diverse cultures effectively

» Work within distributed organizational

structures

» Work with teams composed of global members

» Learn to communicate effectively with cultural beliefs and values different than their own

Appendix A

Currency Risk

Currency Issues

» Currency not associated to the U.S dollar

» Stability of the currency is more questionable

» Currency associated to the U.S dollar

» More stable than floating or unpegged currency

» Few if any competitors

» Supplier can set price based on supplier costs

» Prices are set on the world market

» Supplier can’t sell at a higher price

• Used to minimize market risk

• Requires organized commodity exchange

sold in large quantities

• Addresses risk of buying in dollars

cash flow

usually cost more since risk is lowered for

buyer

• Common types of hedging

» Futures contracts

– Give a fixed cost for foreign currency

– Effectively freezes the exchange rate

Additional Slides

Common Terms in

Global Supply

Management

Common Terms

• Dutiable or free of duty

– Basically means “Duty Free”

– Duty rates are lower than full rates (statutory rates).

– Full rates for tariffs

Common Terms

» Used in aiding the production outside of the buying

firm’s country and are provided by the buying firm

» With respect to duties, these occur after entry

documents have been filed and the entry is liquidated

– Also - there is no guarantee that subsequent shipments will receive the same tariff

Common Terms

• Customs brokers

– Handle clearance of shipments through customs

• Customs invoice

– Not a commercial invoice

– Supplied by U.S Treasury

– Filled out by the supplier

Common Terms (Continued)

• Pro forma invoice

banking & permit needs

exchange permit

• Packing list

(weights, markings, measures)

Common Terms (Continued)

• Bill of lading

– A contract for shipment of merchandise

– A receipt of merchandise

– Document of freight charges

– List of Handling Instructions

– May contain a title

– Ocean bill of lading

– Air way bills

Common Terms (Continued)

• Inspection certificate

• Certificate of origin

actually have been made there, so this is an

effort to trace product origins

END