The Effect that Globalisation has on Supply Chains

Question 1

What are the main stages that have lead organisation to go global?

Answer 1

1 - core strategic focus
2 - internationalise
3 - worldwide structure (country specific strategies)
4 - global strategy (connected strategies)

Question 2

What the difference between global sourcing and international procurement?

Answer 2

global sourcing is strategic, globalised supply network, able to meet orgs global sourcing requirements
International procurement - importing

Question 3

What are the risks associated with global sourcing?

Answer 3

Process Risk - complex, heavily reliant
control Risk - logistics, non-compliance, child labour, IPR
Supply Risk - not meeting specs, lead times
Demand risk - failure to be agile and lean
Environmental risk - force majeure

Question 4

What are the rewards of global sourcing?

Answer 4

competitive advantage, 
opportunities for savings (labour and other), 
sourcing advantages,
new customer markets, 
better quality products

Question 5

What are some of the challenges that need to be taken into consideration when managing logistics on a global scale?

Answer 5

Wide supply network 
Law 
Finance
culture , customs and practice 
Formalities 
Insurance

Question 6

What tool can you use to identify the macro environmental factors associated with global supply chains

Answer 6

STEEPLE

Question 7

What issues does ethical sourcing focus on within the supply chain?

Answer 7

Human rights
Child labour
Bribery 
Fair treatment of suppliers 
Protection is only as strong as the weakest link in the supply chain

Question 8

Name the 4 main things that need to be in place to help ensure your supply chain is ‘ethical’

Answer 8

Standard and policies
Appropriate supplier selection processes
Measures/performance standards
Monitoring of the ethical standard and practices

Question 9

Other than STEEPLE name 4 other tools you can use to understand the vulnerabilities within the supply chain

Answer 9

SWOT 
Porters 5 forces - bargaining power, threat of new entrants & substitutes 
Supply Chain analysis
Value chain analysis
Risk impact

Question 10

What can be put in place to reduce supply chain vulnerability

Answer 10

• Writing good specifications
• Set up contract correctly
• Undertake effective supplier selection
• Relationship management
• Implement supplier performance
• Understand changes in the market, management is an ongoing process

Question 11

name 5 advantages for increasing local sourcing

Answer 11

shorter SC
Carbon footprint
reduce transaction costs
easier comms
currency exchange 
easier payment methods