John Wiley & Sons, I nc c 1998
1
GLOBAL SOURCING
STRATEGY:
R & D,
MANUFACTURING, AND
MARKETING INTERFACES
John Wiley & Sons, I nc c 1998
2
Global Sourcing Strategy: R & D,
Manufacturing, and Marketing
Interfaces
Overview
1. Extent and Complexity of Global Sourcing Strategy
2. Trends in Global Sourcing Strategy
3. Value Chain and Functional Interfaces 4. Logistics of Sourcing Strategy
John Wiley & Sons, I nc c 1998
3
Overview
Three major limitations of the
international product cycle theory
1. The trend to increased pace of new product
introduction and reduction in innovational lead time
2. Ability to preempt the product life
cycle-predictable sourcing development during the product life cycle.
3. More active management of locational and
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4 1. Extent and Complexity of Global
Sourcing Strategy
Exhibit 10-1 Honda’s Worldwide
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5 2. Trends In Global Sourcing Strategy
Exhibit 10-2 Factors that Affect Global
Sourcing Strategy
Trend 1: The Decline of Exchange Rate
Determinism of Sourcing
Trend 2: New Competitive Environment
Caused by Excess Worldwide Capacity
Exhibit 10-3 Key Factors for Sourcing from
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6 2. Trends in Global Sourcing Strategy (cont)
Trend 3: Innovations in and
Restructuring of International Trade Infrastructure
Trend 4: Enhanced Role of
Purchasing Managers
Trend 5: Trend Towards Global
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7 3. Value Chain and Functional
Interfaces
Exhibit 10-4 Value Chain Concept
Exhibit 10-5 Interfaces Among R&D, Manufacturing, and Marketing
R&D/Manufacturing Interface
Manufacturing/Marketing Interface
Core Components Standardization Product Design Families
Universal Product with All Features
Universal product with Different Positioning
John Wiley & Sons, I nc c 1998
8 4. Logistics Of Sourcing Strategy
Exhibit 10-6 Types of Sourcing Strategy
John Wiley & Sons, I nc c 1998
9 5. Costs and Consequences of Global Sourcing
Need for Coordination Functional Mismatch
Long - Term Consequences
Strategic Alliances Dependence
