Global Supplychain of Ford Motors and its strategy in SCM

Global supply chain strategy by Ford motors in its operations management

1. G l o b al S upp l y C h a i n Ma n a g em e nt

2. B elfa s t Ca r b u r et o r s a n d d i s t r ib u t o r s T r efore s t S p a r k p lug i n s u l a to r s L e a m i ngt on Fo u n d r y p r o d u cti o n o f e n g ine co m p o nen ts D a g e nh a m Fi n al a s s e m b l y Bord ea ux T r a n s m i s s i o n s E n f iel d I n s t r u me n t s , f uel a nd w a t e r ga u g e s , p lu g s B a s il don Radia to rs , w a t e r p u m p a ss em b ly, eng i ne co m p o n e n t s G e nk Body p anel s , r oa d w h e e ls W ü lf r a th T r a n s m i s s i on p a r t s , e n g i ne co m p o nen ts Saarlou is Fi n a l a s s e m b l y Cologne D ie - ca st t r a n s ax l e c a s i n g s , g e a r a nd eng i ne c o m p one n t s V ale n c i a F i nal a s s em b ly F o r d E x a m p le

3. GL O B A L M A R K E T F O R C E S – F o r ei gn c omp etit ion i n l ocal m a rke ts – G r o w th i n fo r ei gn de m a n d – Glo bal p r e s enc e as a de f en s i ve t ool – C om p a n i e s fo r ce d to d eve l o p a n d enh an c e le a d i ng-ed ge t e ch n o l ogi e s and p r o duc t s . TE C H N OLOG IC A L F O R C E S – K n o w led ge di f f u s i on a c r o s s n a ti o nal b o und a rie s , henc e n e e d f or t echnol ogy s h a rin g to b e c o m peti t ive – Glo bal loca t i on of R &D facili t ie s C l os e to p r o du c t i o n ( a s p r o d u c t c y c l e s g e t s h o r t e r ) C l os e to e x p er t i s e ( I n d i a n p r og r a m mer s ? ) Why G SC M ?? ??

4. GLOB A L C O S T F AC T O R S – A va i l a bil ity of s ki l led/un s k i lle d l a b or at l o w e r c o s t – I n t e g ra t e d s u pplie r i n fr a s t ruc t u r e ( a s s uppl i e r s bec ome mo r e in vo l v e d in de s i g n ) – C a p ital inten s ive facil i tie s lik e t a x b r e ak s , pr i c e b r e a k s etc . PO L I T I C A L A N D E C O N O M I C F A C T O R S – T r a d e p r o t e c t i on m ech a n i s m s : T a r i ffs, Q u o t a s , V o l u n t a r y e x p o r t r es t r i c t i o n s, L o c a l c o n t e n t r e q u i r e m e n ts, E n v i r o n m e n t a l r e g u l a t i o n s, G o ver n me n t p r o c u r e m e n t p o l i c i e s ( d i s c o un t f o r l o c a l ) – E x ch a n g e r ate f luc t u a t i o n s a n d o perat i n g fle x i bili t y Why G SC M ?? ??

5. Q u e s t i o ns G SC? ????? ? ?? ? M a n u f a c t u r i ng S t r a t e g y : H o w m a n y p l a n ts & wh e r e s h o u l d eac h b e l o c a t e d ? P r o d u c t s m a d e & p r o ce ss to b e u s e d a t e a c h p l a n t? W h a t p a r t o f t h e w o r l d s h o u l d eac h p l a n t s erve ? Supp ly B a s e D es i g n / V e nd or C o n so l i d a t i o n: H o w t o s e l e c t s u p p li er fo r p a r t s i n s a m e p r o du c t g r o u p ? H o w m a n y s u p p l i e r s i s b e st? W h i c h s u p p li er s s h o u l d s e n d w h i c h p a r ts t o wh i c h p l a n ts? C a n I s o u r ce m o r e t h a n o n e p a r t a t a t i m e f r o m a s up p l i e r ? Im p a c t o f D u t y / D r a w b a c k, T a x e s , L o c al C o n t e nt : If t h e d u ty r a t e s c o me d o w n a cc o r d i n g to G A T T /W T O , h o w s h o u l d I c h a n g e m y s u pp l y c h a i n d e s i g n ? W h a t i s t h e b e st u s e of t h e t a x h av e n s? H o w m u c h of l o c a l & g l o b a l s o u r c i n g i s p os s i b l e ? S our c e : G l ob a l Su p p ly C h a in A ss ocia t e s ( G S C A ) 1999

6. Q u e s t i o ns G SC? ????? ? ?? ? O u t so u r c i ng: W h a t p a r ts to p r o d u ce " i n - h o u s e " a n d wh a t p a r ts to o u ts o u r c e ? Sp a r e Par t s L o gi s t i c s : H o w m a n y e c h e l o n s of r e p air a n d st o c k i n g i s b e st? H o w m a n y r e p a i r s h o p s a r e n ee d e d , w h e r e s h o u l d t h e y b e l o c a t e d , wh a t p r o d u c ts s h o u l d e a c h h a nd l e , a n d w h a t g e og r a p h i c a r e a s h o u l d e a c h s er v e ? H o w d o t h e d r i ver s of p r o du c t va l u e i .e . p r o d u c t ’ s w e i g h t, c o m p l e x i t y , a n d f r e qu e n c y o f r e p a i r a ff e c t t h i s d ec i s i o n ? N e w P r odu c t P i p e li n e D e s i g n: W h a t s h o u l d t h e s u p p l y c h a i n l oo k li k e f o r a n e w p r o d u c t ? H o w s h o u l d I f i t t h e n e w p r o d u c t i n to my c u r r e n t s u pp l y c h a i n ? S h o u l d I s i n g l e o r d o u b l e s o u r ce t h i s p r o d u c t? H o w m u c h d o my f i xe d c o sts af f e c t t h i s d ec i s i o n ? W h a t i s t h e c r o ss- ov e r p o i n t to o p e n u p a s ec o n d a n d t h i r d s o u r ce o f s u p p l y ? S our c e : G l ob a l Su p p ly C h a in A ss ocia t e s ( G S C A ) 1999

7. C o s t s L o cal l a b or ra t e s / I n te r n ati o nal f r ei g h t tari f f s C u r r e n c y e x ch an g e rate s C u st o m s D u t y D u ty rate s di f fe r b y c om m o d i ty and le v el of a s s e mb l y I m p a c t of G A T T/W T O : C h an ge s ov e r t i me E xp o r t R e gu l a t i ons & L o c al C o n t e nt D e n i e d p a rtie s li s t / E x p o r t l ic e n s e s L o cal c o n t en t r equi r e m en t f o r g o vern m e nt p u r c h a s e s • T i m e L e ad t ime / C y cle t i me / T ra n s i t ti m e / C u s t oms cle a r an c e T ax e s on C o r p o r a t e I n c o m e T ax h av en s a n d n ot h av en s M a k e v s . b u y e f fec t G l ob a l S C M F a c t o r s S our c e : G l ob a l S u p p ly C h a in A ss ocia t e s ( G S CA ) 1999

8. G l ob a l S u pp l y C h a i n Sy s t e m  I n t e r na t i on a l d i s t r ib u t i o n s y s t e m s : - M a n u f a c t u r i n g ( d o me st i c a l l y ) , D i st r i b u t i o n ( o v er s e as)  I n t e r na t i on a l s upp li er s : R aw m a t er i al s a n d C om p o n e n ts(f o r e i g n s u p p li er s), Fi n a l a ss e m b ly/ M a n u f a c t u r i n g ( d o me st i c a l l y ) ,  O f f s h o r e m a nu f a c t u r i ng : P r o d u c t i s s o u r c e d & m a n u f a c t u r e d i n a s i n g l e fo r e i g n l o c a t i o n , S h i p p e d b a c k to d o m e s t i c w a r e h o u s e s f o r s a l e a n d d i st r i b u t i o n .  F u ll y i n t e g r a t e d gl ob a l s u p p ly c h a i n : P r o d u c ts a r e s u p p l i e d , m a n u f a c t u r e d a n d d i st r i b u t e d f r o m fa c t o r i e s loc a t e d t h r o u g h o u t t h e w o r l d In a t r u l y gl o b a l s up p l y c h a i n , i t m a y a p p e a r t h a t t h e s u p p l y c h a i n w a s d e s i g n e d w i t h o u t r e ga r d to n a t i o n al b o u n d a r i e s. T h e t r u e va l u e o f a g l o b a l s u p p l y c h a i n i s r e a l i z e d b y t a k i n g a d va n t a g e o f t h ese n a t i o n a l b o u n d a r i e s

9. R i s k M an ag e m e nt i n G SC O u t so u r c in g and o f fs h o r i ng e xp o s e t h e s upp l y c h a i n t o i n c r e a s e d r i s k s. T r e nds t o w a r d c o s t r e d u c t i on, l e an m anu f a c t u r i ng and JIT i m p l y l ow in v e n t o r y l e v e l s i n s upp l y c h ai n – I n t h e e v en t of a n un f o r e s e e n di s a s t e r , a dhe r enc e to th i s ty p e of s t r a t e g y c ou l d r e s u lt i n a s hu t d o w n of p r o duct ion line s bec a u s e of lac k of r aw ma t e rial or p a r ts in v entor y .

10. F a c t o r s I m p a cti n g E x p o su r e to Ri s k s C u s t o m e r r e a c t i o ns C om p e t i t o r r e a c t i on s Su p p lier r e a c t i o n s G o v ern m e n t r e a c t i o n s

11. S o u r ce s of R i s ks

12. M ANA G I N G UN K N O WN - UN K N O W N

13. M a n a g i n g t h e U nkn o w n - U nkn o w n I n v e s t i n r e d u nda n c y I n c r e a s e v e l o ci ty i n s e ns i n g an d r e s p ond i ng C r e a t e a n ad a p t ive s u pp l y c h ai n c o m m u n i ty

14. R e dun d a n c y E x a m p l e R e spon d to u n f o r esee n e v en ts b y c a r e f u l an al ys i s o f s upp l y ch a i n t r ad e - o ffs A c o m p a ny w i t h 40 f a c i l i t i e s o v e r t h e w o r l d I n i t ial an al y s i s f o r r e du c t i on of c o s t by $ 4 0M a y e ar s hu t do w n 17 of i t s exi s ti ng ma nu f a c t urin g f a cili t ie s le ave 23 pl a n t s op e r a t in g s ati s fy m a r k e t de ma n d all ov e r t h e w o rld .

15. R e dund a n c y E x a m p l e : P r o b l e m s wi th N e w D e c i s i o n N e w d es i gn l e f t no p l ant i n N o r t h A m e r i c a o r E u r op e L ong a n d va ri a ble s upp ly lea d ti m e s Hig he r i n v e n tor y le v el s . R e m ai n i ng m a n u f a c t u r i ng f a c ili t i e s i n A s i a and L a t i n A m e r i c a f u ll y u t ili z e d A n y di s r u pt ion of s uppl y f r om t he s e c o un t rie s , d u e t o epide mi c s or g e o poli t ical p r o b l e m s , w o ul d ma k e i t i mpo s s ible t o s a t i s f y ma n y m a rke t a r e a s . H o w c a n o n e d e s i gn t h e s upp l y c h a i n t ak i ng i n t o a c c o unt e p i d e m i c s o r g e o p oli t i c a l p r ob l e m s t h a t a r e d i f f i c u l t t o quan t i f y ? A n aly z e t h e c o s t tr a de -o f fs

16. R e dun d a n c y T r a d e - O f fs I nc r e a s e in to t al c o s t negligi b le c o m p a re d to i n c re a s e s i n redu n d a nc y a n d henc e ri s k.

17. S e n s i ng a nd R e s p o n d i n g Sp e e d i n s e n s i n g an d r es pond i n g c a n h e l p t h e f i r m ov e r c o m e un e x p ec t e d s upp l y p r ob l e m s F a il u r e t o s e ns e c ou l d l e a d t o : F a i l u r e t o r e s pond t o c han g e s i n s upp l y c h ai n C a n f o r c e a c o m pany t o e x i t a s p eci f ic m a r k e t

18. S e n s i n g a n d R e s p o nd i n g E x a m p l e D i ff e r e nt r e s p on se s o f N ok i a a n d E r i c s s on on a f i r e at o n e o f t h e s upp li e r ’ s f a c ili t y Sup p lie r w as Phili ps Se m ic o nductor s i n A lb u q u e r que , Me x i c o N o k i a: C h a n g e d p r o d u c t de s ign to s o u r c e c o m p o nen t s f r o m altern ate s up p lie r s F or p a r t s that c o ul d n ot b e s o u r ce d f r om e l s e w he r e , w o r k e d w i th Phili ps t o s o u r c e i t f r om t heir pl ants i n C hin a a n d N e t he r la nd s A ll d on e i n a b o u t f ive d ays

19. S e n s i n g a n d R e s p o nd i n g E x a m p l e Er i c ss o n ’ s e x p er i e n c e w as qu i t e d i f f e r e nt T ook 4 w e e ks f or t h e ne w s to r e a c h u ppe r man ag e m en t R e a l iz e d five w ee k s a f te r t h e f i r e r e ga rd i n g th e s e v e ri t y of t h e s i t uati o n . B y t h at t im e , t h e alternati v e s up p l y of ch i p s w as a l r ea dy ta ke n by N ok i a. D e va s ta t in g i m p a c t on E ric s s on $4 M i n p o t e n t i a l s a l e s w as l o st P a r t of t h e l o ss w as c ov e r e d b y i n s u r a n ce . Led to c o m p onent sho r tag es W r o n g p r o d u c t mi x a n d m a r k e t i n g p r o b l em s c a u s e d : $1 . 6 8 B l o s s to Er i c s s on Ce l l P hon e D i vi s i on in 2000

20. A d a p t a b i l i ty I t i s t h e m o s t d i f f i c u l t r i s k m a na g e m e nt m e t hod t o i m p l e m e n t e ff e c t i v e l y . R e qu i r e s all s upp l y c h ai n ele m e n t s t o s h a r e t h e sam e c u l t u r e , w o r k t o w a r ds t h e s a m e o b j e c t iv e s and b e n e f it f r o m f in a n ci a l g ai n s . N e e d a c o mm un i t y o f s upp l y c h ai n p a r t n er s t hat r e o r g an i z e t o b e t t e r r e a c t t o s u d d e n c r i s i s

21. A d a p t a b i l i ty E x a m p l e I n 1 9 97, A i s i n S e i k i t h e s o le s upp li e r o f 9 8 % of b r a k e f l u i d p r op o r t i o n i ng v al v e s ( P - val v e s ) u se d by T o y o t a I n e xp e n s ive p a r t ( a bout $ 7 e a c h) b u t i m p o r t ant i n t h e ass em b l y of any c a r . Sa t u r d a y , F e b r u a r y 1 , 1 9 9 7 : Fi r e st o pp e d A i s i n ’ s m ai n f a c t o r y i n t h e i ndu s t r ial a r e a of K a r i y a, T w o w eek s t o r e s t ar t t h e p r o d u cti on Si x m o n t h s f o r c o m plete r ec ov e r y T oy o t a p r o du c i ng c l o s e t o 1 5,500 v e h i c l e s p e r d a y . J I T m e ant o nl y 2 - 3 d ays of in v en t o r y s u p pl y •

22. R e c ov e r y E f f o r t by T oyo t a B l u e p r i n t s of v alv e s w e r e d i s t r i bu t e d a m o ng all T o y o t a ’ s s upp li e r s E n gi n e e r s f r o m A i s i n and T o y o t a r e l o c a t e d t o s upp li e r ’ s f a c ili t i e s E xi s t i ng m a c h i n e r y a d a p t e d t o bu il d t h e v a lv e s a c c o r d i n g t o o r igi n al s p e c i f i c a t i o n s N e w m a c h i n e r y a c qu i r e d i n t h e s pot m a r k e t W i t h i n da y s , f i r m s w i t h li t t le e xp e r i e n c e w i t h P - v a lv e s w e r e m anu f a c t u r i ng and d e li v e r i ng p a r t s t o A i s i n A i s in a s s e m b l e d a n d in s pecte d val v e s befo r e s hip m e nt to T oyota A b o u t 2 o f T oyota ’ s s uppl i e r s w e r e i n volv e d •

23. V e h i c le P r od u c ti on & P-Va l v e s I n v e n to r y

24. O u t c o m e A c c i d e n t i n i t i a ll y c o s t: 7.8B Y e n ( $ 65 M ) t o A i s i n 1 6 0B Y e n ( or $ 1 . 3 B ) t o T o y o t a D a ma g e r e du c e d to 3 B Y e n ( $250 M ) w it h e xt r a sh i f t s an d ov er ti m e T o yo ta i s s u e d a $10 0M t ok e n o f a pp r e ci a t i o n to t h e ir p r o vi d er s a s a g if t f o r c o ll a b o r a t i o n

25. S i n g l e S o u r ci n g a n d A d a p ta b i l i t y S i ng le so u r c i n g i s r i s k y A c h i e v e s ec ono m i e s of sc ale H i gh qu a l i t y p a r t s at a l ow c o st JI T m o d e of o p e r a ti o n bu i l d s a c u l t u r e of: W o r k i ng w i t h l ow i n v e n t o r i e s A b i li t y t o i d e n t i f y a nd f i x p r ob l e m qu i c k l y E n t i r e s u p p l y c h a in w as s t opp e d o n c e t h e f i r e o c c u r r e d P r o m p t e d e v e r y c o m pany i n t h e c h a i n t o r e a c t t o t h e c h all e n ge

26. M ANA G I N G K N O WN - U N K N O W N

27. Sp e c u l at i v e S t r a t e g ie s : A c o m p a n y be ts on a s in g l e s c en a ri o, w i t h of t e n s pec t a c u lar r e s u lts i f t h e s cen a ri o i s r ealized , a n d d i s m al o ne s i f i t i s not . He dg e S t r at e g i e s : A c o m p a n y de s i g n s t h e s u ppl y chai n in s uc h a w ay t h at any l o s s e s in p a r t of t h e s uppl y chai n w ill b e of f s e t by gai n s i n a n o t he r p a r t . M u l t i p l e p l a n ts i n d i ff e r e n t c o u n t r i e s, w h e r e , C er t a i n p l a n ts m o r e p r o f i t a b l e a t t i m e s t h a n ot h er s M o v e p r o d u c t i o n b e t w ee n p l a n ts to b e s u cce ssf u l ov e r a l l . F l e x i b le S t r a t e g i e s

28. F l e x i b le St r a t e g y R e qu i r e s a f l e xi b le s u p pl y c h a i n mu ltiple s u p plier s f l e x i ble facili t ie s e x c e s s c ap a c ity va ri o u s di s trib u ti on ch an n e ls C an b e e x p e n s ive t o i m p l e m e nt c oo r d in a t i on m ech a n i s m s c a pi t al in v e s tm en t s lo s s of e c on o m ie s o f s c a l e

29. P r od u c t i on sh i ft i ng : F l exi b l e f ac t or i e s, e x c e ss c a p a c i ty a n d s up p l i e r s u s e d to s h i ft p r o d u c t i o n f r o m r e g i o n to r e g i o n to ta k e a d v a n t ag e o f c u r r e n t c i r c u mst a n c e s. • I n fo rmat i on s h a ri ng : I n f o r ma t i o n c a n b e u s e d to a n t i c i p a t e m a r k e t c h a n g e s a n d f i n d n e w o p p o r t u n i t i e s . • Gl ob al c oo r d i n at i on : H av i n g m u l t i p l e f ac i l i t i e s w o r l d w i d e p r ov i d e s a f i r m w i th a cer t ai n am o u n t o f m a r k e t l e v e r ag e t h a t i t m i g h t o t h er w i s e l a c k . • Pol i t ic al le v er age : T h e o p p o r t u n i ty t o mo v e o p e r a t i o n s r a p i d l y g i ve s f i r ms a m e a s u r e o f p o li t i c a l l e v er ag e i n o ver s e a s o p e r a t i o n s. F o r e xa m p l e , i f g o v er n me n ts a r e l a x i n e n f o r c i n g c o n t rac ts o r i n t e r n a t i o n a l l a w , o r p r e s e n t e x p e n s i v e t a x a l t er n a t i v e s, f i r ms c a n m ov e t h e i r o p e r a t i o n s. App r o a c h e s t o F l e x i b le S t r a t e g y

30. P r o d u c t d e v e l op m e nt : It ’ s i m p or t a n t to d e s i g n p r o d u c ts t h a t c a n b e m o d i f i e d e a si l y f o r maj o r m ar k e ts, a n d wh i c h c an b e m a n u f a c t u r e d i n v a r i o u s f a c ili t i e s . P u r c h asi ng : A c o m p a n y w i l l f i n d i t u s e f u l to h a ve ma n a ge m e n t t e a m s r e s p o n s i b l e f o r t h e p u r c h as e o f i m p or t a n t m a t er i a l s f r o m m a n y v e n d o r s a r o u n d t h e w o r l d . In t h i s w a y , i t i s m u c h e a s i er to e n s u r e t h a t t h e q u a li ty a n d d e li v e r y o p t i o n s f r om va r i o u s s u p p li er s a r e c o m p a t i b l e P r o d u c t i on : E x ce ss c a p a c i ty a n d p l a n ts i n s e v e r a l r e g i o n s a r e e ss e n t i a l i f f i r ms a r e t o t a k e f u l l a d v a n t a ge o f t h e g l o b a l s u pp l y c h ai n b y s h i ft i n g p r o d u c t i o n a s c o n d i t i o n s w a rr a n t. D e m and m ana g e m e nt : It i n vo l ve s s e tt i n g m a r k e t i n g a n d s a l e s p l a n s b a s e d o n p r o j e c t e d d em a n d a n d ava il a b l e p r o du c t , i s c a r r i e d o u t o n a r e g i o n al b as i s . O r d e r f u l f ill m e nt : T o s u cc e s sf u l l y i m p l e m e n t a t r u l y f l e x i b l e SC M sy s t em , a ce n t ra l i z e d s y st e m m u st b e i n p l a ce so t h a t r e g i o n a l c u st o m er s c a n r e c e i v e d e li v er i e s f r om t h e gl o b a l s up p l y c h a i n w i t h t h e s a me e ff i c i e n c y as t h e y d o f r om l o c a l o r r e g i o n al l y b a s e d s up p l y c h a i n . • R e q u i r e m e nts f o r G l o b a l S t r a t e gy I m p l e m e ntat i o n

31. O t h e r I s s u e s i n G SC M R e g i on - s p e c i f ic p r odu c t s V s T r u e g l ob al p r odu c t s L o c a l A u t ono m y v s C e n t r al C o n t r o l E x c han g e r a t e f lu c t ua t i on L o c a l c oll a b o r a t i on m a y b e c o m e c o m p e t i t o r s T o a c c e s s n e w m a r k e t m a y r e qu i r e han d in g o v e r c r i t i c al m a nu f a c t u r i ng a nd e n g i n ee r i ng e xp e r t i se A t any t i m e t h e t h r e at o f p r o t e c t i on i s m m i g ht a p p e a r .

32. R e g i o n a l D i f f e r e n c e s i n L o g i s t i c s F i r st W o r ld E m e r gi n g Th i r d W o r l d I nf r ast r u ct u r e H i gh l y de v e l oped U nder de v e l opment I nsu f f ic i ent t o s upport ad v anced l og i s t i c s S u pp l ier o p e r a t i n g sta nd a r ds H i gh V ar i ab l e T y p i c a ll y not c on s i de r e d I nf o rm a t i o n system ava i la b il ity Genera ll y a v a il ab l e S u p po r t sys t e m n o t a v a il ab l e N ot a v a il ab l e H u m an r es ou r c es A va i l ab l e A v a i l ab l e w i th s o m e s ea r c h i ng O f ten d i f f i c u l t to f i nd

33. C u s t o m e r S e r v i c e R e qu ir e m e nts O r g an i z a t i on a l T r a i n i ng R e qu ir e m e nts P er f o r m a n c e G oa l s Gl o b a l Supp l y C h a i n M a n ag e m e nt B u s i n e s s P r o c e ss e s P l ant a nd D i s t ri but i o n C e n t e r N e t wo r k D e s i g n I n f o r m a t i o n S ys t e ms a nd Supp l i e r R e l a t i o n s h i ps P er f o r man c e Me t r i c s I n v e n t o r y M a n ag e m e nt Out so u r ci ng a nd T h ir d -Pa r ty L og i s t i c s R e l at i o n s h i ps E l e m e n t s o f a G l ob a l S C M

34. I mp r ov e D el i v er y o f Supp l ie s E s t a b l i s h a P re s e n c e i n a Fo r e i gn M a r k e t R e du c e Cos ts R e aso n s f o r Gl o b a l S o u r ci ng S t r a t e g ie s R e a c t to Co m p e t i t o r ’s O f f s h o r e S o u r c i n g P r a c t ic e s I n c r e a s e E x p os u r e to W o r l d w i d e T ec h n o l og y St r e n g th e n R e l i a b il i ty o f Supp l y I m p r ov e Q u a l i ty G a i n A c c e s s to M a t e r i a l s S a t i s fy O ff s e t R e qu ir e m e nts Sup p l i e r N e tw o r ks

35. E va l uat e o p e r a t i ng a nd c o m p e t i t i v e e n v i r o nm e nts D e f i n e s c o p e o f i nt er n at i o n al pu r c h as i ng e f f o r t I d e nt i fy a n d e v a l u a t e p o t e n t i a l s upp li er s wo r l d w i d e D e t e r m i n e a pp r op ri a t e n a tu r e o f bu y er - s u p p l i e r r e l a t i o n s h i p R e q u e s t / e va l u a t e p r o po s a l s f r o m s upp li er s S ele c t “ b e s t” s upp l i e r , e s t a b l i s h c o nt r a c t t er ms a nd c o n d i t i on s , a nd bu i l d d e s i r e d r e l a t i o n s h i p Co nt i nu al re e va l u a t i o n o f i m p l e m e nt a t i o n s t a tu s , r e qu i r e m e n t s , a nd c a p a b i l i t i e s S te p s in t h e G l o b a l S o u r c i n g Pr oce ss

36. T H AN K Y O U