Global Production,
Outsourcing, and Logistics
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Background
1
where to locate productive activities
2
what the long-term strategic role of
foreign production sites should be
3
whether to own foreign production
activities or outsource those activities
4
whether to manage global
logistics or outsource
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 Production refers to activities
involved in creating a product
 Logistics refers to the procurement
and physical transmission of
material through the supply chain,
from suppliers to customers
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What is the strategic objectives
of the production and logistics
function?
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 Two other objectives are important
for international companies:
1. production and logistics functions
must be able to accommodate
demands for local responsiveness
2. production and logistics must be
able to respond quickly to shifts in
customer demand
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Diagram
country factors
technological factors
Where should
production
activities be
located?
product factors
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Philips in China Moves with – “Go West
Strategy” to Chengdu
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Locating Production Facilities
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Outsourcing Production:
Make-or-Buy Decisions
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Nike Sweatshop Problem
Source: Business Insider, 2013
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Brands Caught In Sweatshop Scandals
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Diagram
Text
Text
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ThemeGallery is
a Design Digital
Content &
Contents mall
developed by
Guild Design
Inc.
ThemeGallery is
a Design Digital
Content &
Contents mall
developed by
Guild Design
Inc.
ThemeGallery
is a Design
Digital Content
& Contents mall
developed by
Guild Design
Inc.
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Diagram
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Cycle Diagram
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Diagram
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ThemeGallery is a
Design Digital
Content & Contents
mall developed by
Guild Design Inc.
ThemeGallery is a
Design Digital
Content & Contents
mall developed by
Guild Design Inc.
ThemeGallery is a
Design Digital
Content & Contents
mall developed by
Guild Design Inc.
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Diagram
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Diagram
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Block Diagram
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Block Diagram
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