Global Sourcing

By

Subroto Roy Ph.D.

University of New Haven
Website and Blog : www.stratoserve.com
Email: Dr.SubrotoRoy@gmail.com

Overview

Supply Management Evolution

The Firm and its Boundaries
International Purchasing vs. Global Sourcing
Excellence in Global Sourcing
India Opportunities
Global Supplier Relationship management
Managing privacy and Intellectual Property in
Global Sourcing
Global Cultures
Summary
2006 Northeast Supply Chain Conference and
Educational Exhibition

Supply Management Evolution

1920s Ford Rouge Plant no real
purchasing function
1939 the war boom years difficult to
scale up production .. purchasing evolves
Till Berlin wall (1989) and Soviet collapse
(1991) need to prove free markets
buyer-seller relations are adverse
2006 Northeast Supply Chain Conference and
Educational Exhibition

Supply Mgmt. After 1991

1993- Jack Welch and GE Session C reviews
Mid level Purchasing to Strategic Sourcing.
1995 Internet- Globalization
2001: 911
Judith Ross (2005) HBR- Supply Chain Strategy
70% in materials and parts purchased.
The World is Flat Thomas Friedman (2005)

2006 Northeast Supply Chain Conference and

Educational Exhibition

June 2006 CAPM Survey ..

91% Supply
Management
Professionals felt
that SM is
becoming more
important

2006 Northeast Supply Chain Conference and

Educational Exhibition

Supply
Management

Supplier

Firm

Marketing
and Sales

Distributor

Customer

2006 Northeast Supply Chain Conference and

Educational Exhibition

International vs. Global

Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

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Source: Trent&Monczka,2005- MIT Sloan Mgmt. Review

2006 Northeast Supply Chain Conference and
Educational Exhibition

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Relationships and IP
Supplier Relations- say and do the right
thing !
Auto and aerospace take one supplier
drawing and give to another supplier?

Result.
Aerospace supplier supplies directly to after
market.
2006 Northeast Supply Chain Conference and
Educational Exhibition

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2006 Northeast Supply Chain Conference and

Educational Exhibition

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Source
Dwyer,Schurr
and Oh(987)

Can we
understand
and link the
purchasing
process to this
diagram?

Source: Subroto Roy (2005 with K Sivakumar and 2006- with Amit Sheth,
K.Sivakumar, Budak Arpinar)

2006 Northeast Supply Chain Conference and

Educational Exhibition

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Source: Subroto Roy & K. Sivakumar 2005

2006 Northeast Supply Chain Conference and

Educational Exhibition

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Balanced Metrics for

Supplier
Performance
Going Beyond Price
Quality
Delivery History
Continuous improvement-

2006 Northeast Supply Chain Conference and

Educational Exhibition

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Silent Language Ed Hall

Is the Culture Deal focused or
relationship focused ?
Direct or indirect contextual
communication?
Punctuality?
Personal physical space-

2006 Northeast Supply Chain Conference and

Educational Exhibition

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Geert Hofstede

Power Distance Index (PDI)

Individualism (IDV)
Masculinity (MAS)
Uncertainty Avoidance
Index (UAI)
Long Term Orientation
(LTO)
2006 Northeast Supply Chain Conference and
Educational Exhibition

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2006 Northeast Supply Chain Conference and

Educational Exhibition

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2006 Northeast Supply Chain Conference and

Educational Exhibition

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2006 Northeast Supply Chain Conference and

Educational Exhibition

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2006 Northeast Supply Chain Conference and

Educational Exhibition

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Summary

Supply Management Evolution

The Firm and its Boundaries
International Purchasing vs. Global Sourcing
Excellence in Global Sourcing
India Opportunities
Global Supplier Relationship management
Managing privacy and Intellectual Property in
Global Sourcing
Global Cultures
Summary
2006 Northeast Supply Chain Conference and
Educational Exhibition

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Questions Comments?
Thank You!
And watch for updates at my blog
www.stratoserve,com
Email: Dr.SubrotoRoy@gmail.com

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