Global Sourcing and Logistics

Reference the following chart to consider where your company is in the maturity cycle today:
Phase
Strategy and planning
Sourcing execution
Supply chain optimization
Long-term capability
building
You might ask:
What can I source in low-cost
countries?
How do I accelerate my global
sourcing and logistics plan?
How do I integrate the new
suppliers into my supply chain
and ensure optimal logistics?
How can I enhance my
presence in low-cost country
markets?
Your current situation may be:
Aware of the potential but
little or no experience. Not
organized or equipped for
low-cost country sourcing
Disappointing returns with
sourcing activities to date.
Speed is too low. Need to
improve knowledge of the
low-cost country market.
Difficulties with supplier
implementation and
performance mean the
relationship is
underdeveloped. Delivery
precision is poor. Effects on
flexibility of production and
capacity planning.
Need to develop local
presence by defining a
strategy for each country.
Consider setting up an
international procurement
office.
The solution is to:
Undertake the category
assessment phase and
determine the most suitable
categories for low-cost
country sourcing. Define pilot
project and execute sourcing
plan.
Accelerate results by
strengthening the project
organization and get help in
driving the sourcing activities
by using a mixed team of
central and local resources in
low-cost countries.
Integrate the existing lowcost
country supply base
according to a structured
program with clear check
points. Team up with experts
to design overall logistics
flow.
Adjust organizational design
to build local presence in
major supply markets. Align
procurement organization
structure with global
operations strategy.
Collaboration without complexity
Global sourcing and logistics carries its own complexities. There
are many reasons why companies may hesitate before initiating
projects, or why they might be reluctant or unable to take their
existing sourcing strategy to the next level. Supply chain
discrepancies can be costly. Supplier relationships entail their own
sensitivities, but attitudes of resistance are not conducive to rapid
progress. At Accenture, our practical skills and proven expertise
mean that your company can begin to work differently. Instead of
advancing opportunistically when resources allow, we can help
you accelerate in an organized and scheduled manner, and bring
fresh scope and diversity to your sourcing and logistics scenario to
enable high performance.
How Accenture helped:
A construction equipment
company: Defined which
component groups are
suitable for low-cost country
sourcing. Defined complete
sourcing program, total cost
of ownership-based savings
estimations, business case,
and execution plan.
An industrial equipment
manufacturer: Achieved 30
percent total potential
savings (on landed price),
equating to $7.2 million on
quoted parts.
A global retail brand: Worked
with client to redesign overall
logistics network. Defined
program for each supplier to
synchronize production
scheduling with customers.
A consumer goods company:
Helped set up a local
procurement office in
Shanghai; defined how to
integrate office with global
procurement organization.
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