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
 Supply Management Evolution
•1920’s 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
 Supply Mgmt. After 1991
• 1993- Jack Welch and GE – Session C reviews
– Mid level Purchasing toStrategic 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)
 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.
 Balanced Metrics for
Supplier
Performance
Going Beyond Price……
• Quality
• Delivery History
• Continuous improvement-
 Silent Language” Ed Hall
Is the Culture Deal focused or
relationship focused ?
•Direct or indirect contextual
communication?
• Punctuality?

•Personal physical space-

 Geert Hofstede
• Power Distance Index (PDI)
• Individualism (IDV)
• Masculinity (MAS)
• Uncertainty Avoidance
Index (UAI)
•Long Term Orientation