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