WINNING GLOBALLY
Chair: Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain
Opening Remarks &
Introduction
Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain
Going Global Case Study
Craig Simon
President and CEO, FedEx Supply Chain
Why should I do
How does customer
business globally?
demand affect my
sourcing decision?
How do I organize
internationally?
Is there sufficient
infrastructure?
What are the
regulations?
What time is it
in Sri Lanka?
But I only
speak English. What does it cost to source
from another country?
What is a
frontier market?
Which countries are
most important?
Do they have
paved roads?
How does Colombia
compare to Panama?
Should I use one
operating system How do
globally?
exchange rates
affect profits?
Who can sign
contracts in Tunisia?
What will the
price of oil be Where should I
store my finished
next year?
goods?
How do I keep my
products secure?
Should I use a
distributor or go
What is
direct?
CTPAT?
Should I worry
about FCPA?
Is it safe
over
there?
Brent Crude Oil Prices 1982–2014
1986:
$8.75
Source: Trading Economics
2008:
$145.61
2014:
~$109
Export Trends for Top Markets
Exports from some of these countries have been slowing down
since CY2010 (YOY% Total Export Value in USD)
Source: IMF, National Authorities
World Trade Volume vs. Global Real GDP
• During the globalization of manufacturing, trade grew 2-3 times faster than GDP
• In 2012 and 2013, trade volumes failed to grow at their historical rate
• Since the “Great Recession,” trade has been steadily improving but not at the
prior pace
Source: CPB Netherlands Bureau for Economic Policy and Analysis,
Economic Intelligence Unit, FedEx Corporate Economics
Near Shoring
Domestic Agenda
“New Normal”
Protectionism
Impact of Global Trade
• 95% of America’s consumers live outside our borders
• Every $1 billion in additional exports supports approximately
5,000 U.S. jobs
• Since President Obama launched the National Export Initiative in
2010, U.S. has seen record exports and an increase of 1.3 million
export-related jobs
Source: U.S. Department of Commerce, April 2014
Record U.S. Exports in 2013
• U.S. exports in 2013 set record for fourth straight year – reaching
$2.3 trillion, up nearly $700 billion since 2009
• Record U.S. merchandise exports in 2013 to 63 markets, including:
•
•
•
•
•
•
Canada (+2.7%)*
Mexico (+4.7%)
Colombia (+13.8%)
Panama (+9.6%)
Peru (+7.6%)
Jordan (+18.2%)
Source: U.S. Department of Commerce, April 2014
* Year-over-year change from 2012
Value of World Merchandise Exports
2003-2013
20
15
10
5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
In trillions (USD)
Source: WTO
Six Largest Economies by Share of World
GDP – 2005 vs. 2011
22.5
48.4
9.7
U.S.
China
Japan
Germany
India
UK
Other
17.1
49.6
14.9
6.4
7.0
3.5 4.3
4.6
Total 2005 World GDP: $55 trillion
Source: International Comparison Program (ICP)
3.5 3.7
4.8
Total 2011 World GDP: $90 trillion
U.S.
China
India
Japan
Germany
Russia
Other
How do you make decisions
about where to do business
globally?
10 Global Risks of Greatest Concern
3. Water Crisis
5. Failure of Climate Change Mitigation and
Adaptation
6. Greater Incidence of Extreme Weather Events
8. Food Crisis
Corporate Climate
Adaptation
Opportunities:
Building Resiliency
around the Globe
ND-GAIN: Data to Inform Decision Makers
Ranking & country scores
• 177 countries
• 50 indicators
• 17 years of data
• 9 variables
ND-GAIN Matrix
Threats and
opportunities for
country-level
investment
decisions
ND-GAIN Matrix
ND-GAIN Country Profiles Example: Brazil
ND-GAIN Sector-Specific Profiles Example: Infrastructure
China
India
Notre Dame Global Adaptation Index
www.nd-gain.org
Managing Director
Joyce Coffee
Research & Development
Jessica Hellmann
Nitesh Chawla
Emerging Markets Definition
• Countries restructuring economies and growing along marketoriented lines and offer wealth of opportunities in trade,
transportation, technology transfers and foreign direct investment.
• Stand out due to some combinations of these characteristics:
• Fast-growing economies, contributing great deal to world
trade growth
• Regional economic powerhouses with large populations,
large resource bases and large markets
• Transitional societies undertaking domestic economic and
political reforms
• Emphasize infrastructure developments and improving
regulatory and social environments
Components of Emerging Markets Index (EMI)
Emerging Markets Framework: EMI Roadmap
1
USA
NL UK Large Developed
SIN BE
Sweden
HK
Small Developed
Denmark SwitzerlandCanada Spain France Germany
New ZealandNorway
Italy Japan
Australia
Ireland
Small
Austria
Finland
Portugal
S. Korea
Emerging
Czech R.
Greece
Mexico
Poland
Slovenia
Slovakia
Estonia
Malaysia
Israel Chile UAE
Hungary
Bahrain Lithuania
Romania Saudi A. Thailand
0.9
HIGH
0.8
Business Climate Index
0.7
0.6
S. Africa
Latvia Bulgaria
Russia
Turkey
China
Panama Croatia
Peru
Brazil
Oman
Large Emerging
Costa Rica
QatarColombia
Vietnam
Frontier
Uruguay KuwaitMorocco Philippines
India
Kazakhstan Ukraine
Now
Egypt
El Salvador Jordan
Indonesia
Venezuela
Argentina
Serbia
Dominican R.
Guatemala Algeria
Montenegro
Nigeria
Pakistan
BelarusEcuador
Nicaragua
Honduras Sri Lanka
Iran
The Market Potential Index is derived
Ghana
f rom the Transportation, Market Size
Cambodia Kenya
and Market Growth Indices.
Bangladesh
0.5
0.4
0.3
LOW
0.2
The Business Climate Index is derived
f rom the Economic Activity, Business
Environment, Human Development and
Inf rastructure Indices.
Laos
0.1
Frontier Next
Iraq
0
0
0.1
0.2
LOW
0.3
0.4
0.5
0.6
Market Potential Index
0.7
0.8
HIGH
0.9
1
Talent Management Panel
Discussion
Moderator: Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain
Panelists:
Mary Iazzetta
Director Global Strategic Sourcing, Verizon
Ye’ella Nir-Rosin
Director Worldwide Logistics & Supply Chain, Eastman Kodak
Nada Sanders Phd
Iacocca Chair, Professor of Supply Chain Management,
Lehigh University
Renee Ure
VP Integrated Supply Chain, IBM
Talent Management Panel
Discussion
Mary Iazzetta
Director - Global Strategic Sourcing
Using Technology to Address Global
Challenges
The best, most reliable networks in the industry
2013 revenues of $120.6 billion
96% of Fortune 1000 Companies rely on VZ services
More than 176,800 employees worldwide
2014 Priority: Our Customers, Every Day
Global Strategic Sourcing
Manages global sourcing activities for
approximately $26B in annual spend
End-to-end supply chain performance
Network and IT Hardware
Software and Services
Growth of business relationships with diverse suppliers
Strategic supplier relationships enterprise wide
One Centralized Global
Strategic Sourcing
Organization
Global Strategic Sourcing Category
Management
KODAK’s Extensive Supply Chain Meets Global Demand
U.S & Canada Region
Europe, Africa and
Middle East Region
Asia Pacific
Region
Manufacturing & R&D
Distribution Node
Service Parts Hub
ROLE OF UNIVERSITIES IN PREPARING TALENT
NADA R. SANDERS, PH.D.
IACOCCA CHAIR, PROFESSOR OF SUPPLY CHAIN MANAGEMENT
LEHIGH UNIVERSITY
 Most have a primary goal to prepare talent for a
global economy
 Two strategies:
 Curricular modifications (e.g. student exchanges, dual degrees,
content changes)
 Practical experience (e.g. internships abroad, co-ops)
 Variations in degree of immersion, geographic
specificity, and job matching
 Challenge in assessment and standardizing outcomes
Integrated Supply Chain (ISC)
ISC supports all IBM lines of business providing the following:
About IBM




Conducts business in 200+ countries
~400,000 employees globally (~25,000 in ISC)
Works with ~100,000+ business partners
Comprised of 5 business units:









2013 Revenue
Supply Chain Execution: Manufacturing, New Products
Introduction, Cross-platform Solutions Integration,
Engineering, Supply/Demand & Inventory planning,
Customized Solutions
Procurement: Production, General & Services
Procurement, Procurement Process Outsourcing
Quote to Cash / Sales Support
• Pre-Sales support (New 2013 Mission): Client proposals
and quotes, Solution Design, Order processing
• Post-Sales support: Order Fulfillment, Contract
Administration, Accounts Receivable
Asset Management
Risk and Compliance Management
Supply Chain Transformation and Analytics
ISC Global Transformation
Multi- National Towers
Globally Integrated Enterprise
Smarter Value Chain
Journey
Wrap-up & Closing Remarks
Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain