About the Book
LEVERAGE YOUR SUPPLY CHAIN FOR MAXIMUM PROFITDo you have a global supply chain strategy designed for the long run?
About 90 percent of global demand is not fully met by local supply, and global supply chains will soon account for 25 percent of multinational firms' performance--meanwhile, supply chains need to become 43 percent more global in the next decade just to maintain a firm's competitive edge.
Written by three of today's leading experts on the subject--each from Michigan State University, the uncontested world leader of supply chain management--Global Supply Chain Management gives you the know-how and tools to dramatically boost supply chain efficiency by making it a core element of your overall corporate strategy.
Global Supply Chain Management takes you step by step through the process of creating and managing a global supply chain strategy and aligning it with the conditions of your industry. Learn everything you need to know about developing a core strategy plus strategies for each of the critical supply chain functions:
- LOGISTICS--Integrate logistics strategy and tactical activities
- PURCHASING--Manage the transition to purchasing globally
- OPERATIONS--Systematically design, direct, and control processes
- MARKET CHANNELS--Effectively connect your supply chain to customers
With in-depth case studies and data showing how American Express, AB InBev, Dell, FedEx, Daimler, Microsoft, Nestlé, Nokia, and several other prominent companies have applied global supply chain strategy to increase profits and growth, Global Supply Chain Management helps you take action to drive similar success in your company.
If you're serious about competing today--and in the future--you must integrate and leverage strategic supply chain management into your overall corporate strategy. Global Supply Chain Management provides everything you need to build a strategy designed for the long run.
PRAISE FOR GLOBAL SUPPLY CHAIN MANAGEMENT
"This book does a superb job of using a total value perspective and integrating business functions into a strategic framework for global supply chain management that can be leveraged for success." -- Leif Johansson, Chairman of the Board of Directors of AstraZeneca,Ericsson, European Round Table of Industrialists, andthe International Advisory Board of the Nobel Foundation
"Written by a superb team of world-leading authors on global supply chain management, this book provides a great framework for companies to leverage global supply chain functions and processes, measurements, and tools to achieve sustained strategic advantage in the global marketplace." -- Michael Lawton, Chief Financial Officer (CFO) and Executive Vice President of Finance of Domino's Pizza, Inc.
"In our company, we have come to recognize the strategic importance of building and maintaining a global supply chain. This book does an excellent job of identifying a framework for considering the implications of an integrated model for global supply chain management. It's clear that the authors have tremendous experience, and they have shared their insights in an innovative and integrative way." -- John Shull, Vice President and Global Procurement Officer of Steelcase Inc.
"Global supply chains are critically important to companies in delivering products and services that satisfy customers. Hult, Closs, and Frayer provide an excellent model for how to drive the strategic and operational dimensions of global supply chain management to maximize end-customer value." -- Claes Fornell, Chairman of the Board of Directors of CFI Group Worldwide and ForeSee, and founder of the American Customer Satisfaction Index (ACSI)
Table of Contents:
Preface ix
Chapter 1
Global Strategy and Global Supply Chain Management 1
Welcome to the Intriguing World of Global Supply Chain Management 1
Global Trade and Global Supply Chains 5
Emerging Markets and Global Supply Chains 8
Global Strategic Supply Chain Management 13
Global Location of Value-Added Activities 16
Important Definitions and Distinctions 21
Integration of Global Supply Chain Functions 24
How Global Supply Chain Management Achieves Benefits 27
Supply Chain Management Integrating Processes 30
Chapter 2
Industry Implications for Global Supply Chains 33
Diagnosing Industry Globalization Potential 33
Understanding Market Globalization Drivers 37
Market Globalization Drivers’ Implications for Supply Chains 38
Understanding Cost Globalization Drivers 44
Cost Globalization Drivers’ Implications for Supply Chains 45
Understanding Government Globalization Drivers 51
Government Globalization Drivers’ Implications for Supply Chains 52
Understanding Competitive Globalization Drivers 58
Competitive Globalization Drivers’ Implications for Supply Chains 59
Guidelines for Diagnosing Industry Globalization Potential 64
Appendix: Measures of Industry Globalization Drivers 66
CHAPTER3
Global Supply Chain Infrastructure 69
Basic Worldwide Infrastructure Issues 69
Transportation, Communication, Utilities, and Technology Infrastructure 73
Supply Chain Security, Risks, and Value 81
Legal Considerations, International Contracts, and Insurance 89
Commercial Documents and Customs Clearance 93
Terms of Payment and Currency of Payment 96
International Commerce Terms (Incoterms) 97
World Customs Organization and the Harmonized System 100
globalEDGE™: Your Source for Global Business Knowledge 103
Guidelines for Assessing Global Supply Chain Infrastructure 107
Appendix: Logistics Performance Index 2012 109
CHAPTER4
Logistics in Global Supply Chains 111
Global Logistics Strategy 111
Global Distribution Centers 115
Global Inventory Management 120
Global Packaging and Materials Handling 123
Transportation 126
Reverse Logistics 136
Guidelines for Logistics in Global Supply Chains 138
CHAPTER5
Purchasing in Global Supply Chains 141
Global Purchasing Strategy 141
From Domestic to International to Global Purchasing 145
Types of Purchasing Strategy 150
Outsourcing, Offshoring, and Their Derivatives 152
Global Customers and Channels 153
Order Fulfillment and Delivery 155
Global Supplier Selection 158
Global Supplier Networks 164
Critical Success Factors for Purchasing in Global Supply Chains 165
Guidelines for Purchasing in Global Supply Chains 167
CHAPTER6
Operations in Global Supply Chains 169
Global Operations Strategy 169
Make-or-Buy Decisions in Global Supply Chains 173
Global Production and Manufacturing 178
Competitive Priorities in Global Supply Chains 180
Total Cost Analysis in Global Supply Chains 183
Process-Based Quality Standards 185
Supply Chain Operations Reference Model 188
1PL/2PL/3PL/4PL/5PL 190
Guidelines for Operations in Global Supply Chains 191
CHAPTER 7
Market Channels in Global Supply Chains 195
Global Market Channels Strategy 195
Customer Value–Creating Global Processes 198
International Market Entry Modes 202
International Wholesaling, Retailing, and Franchising 204
Exporting and Importing 208
Going Global Online 212
Place and the Other Three Ps 215
globalEDGE Diagnostic Tools and Market Potential Index (MPI) 217
Guidelines for Market Channels in Global Supply Chains 219
CHAPTER8
Managing Global Supply Chains 223
Value of Managing the Location of Global Activities 223
Importance of Coordination in Global Supply Chains 228
Coordination Mechanisms in Global Supply Chains 230
Interorganizational Relationships in Global Supply Chains 232
Value Propositions in Global Supply Chain Relationships 233
Stakeholders and Global Supply Chain Sustainability 236
Guidelines for Managing Global Supply Chains 238
Wrap-Up of the Intriguing World of Global Supply Chain Management 241
Notes 243
Index 249
Contents vii
About the Author :
G. Tomas M. Hult is the John W. Byington Endowed Chair, professor of marketing and international business, and director of the International Business Center in the Eli Broad College of Business at Michigan State University. The Broad College has a Center for International Business Education and Research (CIBER), one of only 17 funded by the U.S. Department of Education, and is consistently ranked as a Top-25 business school. Learn more about Professor Hult at broad.msu.edu/facultystaff/hultA native of Sweden, Professor Hult received a mechanical engineer degree in Sweden before obtaining a PhD at The University of Memphis. In addition to Michigan State University, he has served on the faculties of Florida State University and the University of Arkansas at Little Rock. Dr. Hult holds visiting professorships in the International Business group of his native Uppsala University, Sweden (since 2013) and the International Business division of Leeds University, UK (since 2010). Michigan State, Uppsala, and Leeds are all ranked in the top 10 in the world in international business research.Several studies have ranked Professor Hult as one of the most cited scholars in the world in business and management. He served as editor of Journal of the Academy of Marketing Science, a Financial Times Top-50 business journal, and has published more than 70 articles in premier business journals, including Journal of International Business Studies, Academy of Management Journal, Strategic Management Journal, Journal of Management, Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Operations Management, Decision Sciences, and IEEE. He has also published several textbooks including International Business (McGraw Hill, LLC) and Global Business Today (McGraw Hill, LLC). Dr. Hult's other books include Second Shift: The Inside Story of the Keep GM Movement, Global Supply Chain Management, Total Global Strategy, and Extending the Supply Chain. He is a regular contributor of op-ed and articles in the popular press (e.g., Time, Fortune, World Economic Forum, The Conversation).Professor Hult is a well-known keynote speaker on international business, international marketing, global supply chain management, global strategy, and marketing strategy. He teaches in doctoral, master’s, and undergraduate programs at Michigan State University. He also teaches frequently in executive development programs and has developed a large clientele of the world’s top multinational corporations (e.g., ABB, Albertsons, Avon, BG, Bechtel, Bosch, BP, Defense Logistics Agency, Domino’s, FedEx, Ford, FreshDirect, General Motors, GroceryGateway, HSBC, IBM, Michigan Economic Development Corporation, Masco, NASA, Raytheon, Shell, Siemens, State Farm, Steelcase, Tech Data, and Xerox).Tomas Hult is an elected Fellow of the Academy of International Business (AIB), one of only about 90 scholars worldwide receiving this honor, and serves as the executive director and foundation president of AIB. He also serves on the U.S. District Export Council and holds board member positions on the International Trade Center of Mid-Michigan and the Sheth Foundation.Tomas enjoys tennis, golf, and traveling as his favorite recreational activities.
David J. Closs is the John H. McConnell Chair Emeritus of Business Administration and former Chairperson in the Department of Supply Chain Management at Michigan State University. He received his Ph.D. in marketing and logistics from Michigan State. Dr. Closs is the author and coauthor of many books and publications in journals, proceedings, and industry reports. He was also a principal researcher for World Class Logistics: The Challenge of Managing Continuous Change and 21st Century Logistics: Making Supply Chain Integration a Reality. Dr. Closs is a frequent speaker at industry and academic conferences and presenter at executive education programs throughout the world. Dr. Closs formerly served as the editor of the Journal of Business Logistics and was designated as a Distinguished Fellow by CSCMP.
