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Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
Outsourcing the Supply Chain
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Outsourcing the Supply Chain

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Presentation used by Kenneth Sturdivant during MBA Masterclass "Outsourcing the Supply Chain" at Maastricht School of Management Romania - 6th of October 2011

Presentation used by Kenneth Sturdivant during MBA Masterclass "Outsourcing the Supply Chain" at Maastricht School of Management Romania - 6th of October 2011

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  • Motivating people Challenging Coaching
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  • Transcript

    • 1. Outsourcing the SC It’s becoming possible to buy, off the shelf, practically any function required to run a company
    • 2. Why Outsource? Workers suddenly face a grave new threat , with even highly educated professionals having to compete against throngs of hungry college grads in India, China & other developing industrial markets willing to work twice as hard for one-fifth the pay
      • “ Transformational Outsourcing ”
      • Right Sizing
      • Re-Engineering
      • Rationalization
      • “ Totally Disaggregated Corporations ”
      “ The issue is that if you don’t do it, you won’t survive”
    • 3. Why Outsource?
      • Estimated that $19 billion in global IT & $12 billion in business process services have been shifted to outsourcing
      • Estimated that just one-tenth of potential global outsourcing market
      • Technology , Communication , Education & Customer Demands
      Strategic Decisions : -Influencing Business Strategy? -Connected? -Adapting? -Working as a “TEAM”? -Communicating? Risks -Change -Management -Time -Money -Resources & Assets -Quality -Social / Environmental -Processes Outsourcing should result in a “ sustainable competitive advantage ”
    • 4. Why Outsource?
      • Speeds-Up :
      • -Innovation / Technology / Automation
      • -Re-organization / Re-Structuring
      • -Funding New Projects
      • -Change
      • Accelerates Strategic Initiatives
      • Turn-Around Dying Businesses
      • Competitive Intel
      • Lowers :
      • -Operating Costs
      • -Capital Requirements
      • Replaces Inadequate:
      • -Knowledge
      • -Expertise
      • -Skill Sets
      ‘ Business schools must train future leaders to manage the virtual globally distributed corporation’
    • 5. What is SC? Procuremen t Engineering Mfg. Whse. Transport. Distribution Customer Care Strategic Management Quality Mgmt. & Logistics Acquisition Transformation Delivery “ In future, firms won’t necessarily compete against other, instead entire supply chains will compete against each other”.
    • 6.
      • Poor :
      • -Operational Efficiency
      • -Operational Effectiveness
      • -Lead Time-to-Market
      • -Economy-of-scale
      • -Asset Utilization
      • -L abor Utilization
      • -Poor Organizational S tructure
      • R epeat a ble Processes
      • No n -P r o prietary
      • Ea sily M e a sure d Performance
      • C entr a lized Activity
      • L o w Ri s k
      • H igh Vo lume
      Keys to Outsourcing? “ As rising global costs equalize & dissipate savings from outsourcing, sustaining future competitive advantage will require leveraging global talent in transforming companies & industries, hopefully creating better jobs for everyone”
    • 7. Outsourcing SC Supply Chain -Logistics -Procurement -Engineering -R&D -Manufacturing -Quality -Warehousing -Transportation -Distribution -Customer Care
      • Approx. 60% - 80% of sales revenue is managed by SC Activities
      • Enormous gains in efficiency, productivity, quality & revenues achieved by leveraging outsourcing
      “ Don’t tell me how much I can save, but how I can grow my business by 40% without increasing capacity ”
    • 8. Outsourcing the SC Thank You

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