Global Sourcing
By
Subroto Roy Ph.D.
University of New Haven
Website and Blog : www.stratoserve.com
Email: Dr.SubrotoRoy@gmail.com
Overview
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Supply Management Evolution
The Firm and its Boundaries
International Purchasing vs. Global Sourcing
Excellence in Global Sourcing
India Opportunities
Global Supplier Relationship management
Managing privacy and Intellectual Property in
Global Sourcing
• Global Cultures
• Summary
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Supply Management Evolution
• 1920’s Ford Rouge Plant – no real
purchasing function…
• 1939… the war boom years difficult to
scale up production .. purchasing evolves
• Till Berlin wall (1989) and Soviet collapse
(1991) need to prove “free markets” –
buyer-seller relations are adverse…
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Supply Mgmt. After 1991
• 1993- Jack Welch and GE – Session C reviews
– Mid level Purchasing to Strategic Sourcing.
• 1995 Internet- Globalization
• 2001: 911
• Judith Ross (2005) HBR- Supply Chain Strategy
70% in materials and parts purchased.
• “The World is Flat” Thomas Friedman (2005)
2006 Northeast Supply Chain Conference and
Educational Exhibition
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June 2006 CAPM Survey …..
91% Supply
Management
Professionals felt
that SM is
becoming more
important…
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Supply
Management
Supplier
Firm
Marketing
and Sales
Distributor
Customer
2006 Northeast Supply Chain Conference and
Educational Exhibition
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International vs. Global
Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Relationships and IP
• Supplier Relations- say and do the right
thing !
– Auto and aerospace take one supplier
drawing and give to another supplier?
• Result….
– Aerospace supplier supplies directly to after
market.
2006 Northeast Supply Chain Conference and
Educational Exhibition
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2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source
Dwyer,Schurr
and Oh(987)
Can we
understand
and link the
purchasing
process to this
diagram?
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Source: Subroto Roy (2005 – with K Sivakumar and 2006- with Amit Sheth,
K.Sivakumar, Budak Arpinar)
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Source: Subroto Roy & K. Sivakumar 2005
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Balanced Metrics for
Supplier
Performance
Going Beyond Price……
• Quality
• Delivery History
• Continuous improvement-
2006 Northeast Supply Chain Conference and
Educational Exhibition
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“Silent Language” Ed Hall
• Is the Culture Deal focused or
relationship focused ?
• Direct or indirect contextual
communication?
• Punctuality?
• Personal physical space-
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Geert Hofstede
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Power Distance Index (PDI)
Individualism (IDV)
Masculinity (MAS)
Uncertainty Avoidance
Index (UAI)
• Long Term Orientation
(LTO)
2006 Northeast Supply Chain Conference and
Educational Exhibition
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2006 Northeast Supply Chain Conference and
Educational Exhibition
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2006 Northeast Supply Chain Conference and
Educational Exhibition
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2006 Northeast Supply Chain Conference and
Educational Exhibition
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Educational Exhibition
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Summary
•
•
•
•
•
•
•
Supply Management Evolution
The Firm and its Boundaries
International Purchasing vs. Global Sourcing
Excellence in Global Sourcing
India Opportunities
Global Supplier Relationship management
Managing privacy and Intellectual Property in
Global Sourcing
• Global Cultures
• Summary
2006 Northeast Supply Chain Conference and
Educational Exhibition
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Questions – Comments?
Thank You!
And watch for updates at my blog
www.stratoserve,com
Email: Dr.SubrotoRoy@gmail.com
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