{"id":446,"date":"2016-07-13T13:00:19","date_gmt":"2016-07-13T18:00:19","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=446"},"modified":"2016-07-13T13:00:19","modified_gmt":"2016-07-13T18:00:19","slug":"international-sourcing-and-logistics-an-integrated-model","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/international-sourcing-and-logistics-an-integrated-model\/","title":{"rendered":"International sourcing and logistics: an integrated model"},"content":{"rendered":"

Martin Faering and Sameer Prasad<\/p>\n

Logistic Information Management<\/h2>\n

1999, Vol. 12, No. 6, p. 451-459<\/p>\n

 <\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction<\/p>\n

    \n
  1. a) Developed nations<\/li>\n
  2. i) Finding it difficult to compete with operations located in emerging markets<\/li>\n
  3. ii) Two strategies<\/li>\n<\/ol>\n

    (1)\u00a0\u00a0 Locating operations in emerging markets<\/p>\n

    (2)\u00a0\u00a0 Sourcing from emerging markets<\/p>\n

    (a)\u00a0\u00a0\u00a0 Benefits:<\/p>\n

    (i)\u00a0\u00a0\u00a0\u00a0\u00a0 Reduced costs<\/p>\n

    (ii)\u00a0\u00a0\u00a0 Improved quality<\/p>\n

    (iii)\u00a0\u00a0 Reduced lead times<\/p>\n

    (iv)\u00a0 Become more flexible and innovative<\/p>\n

    (b)\u00a0\u00a0 Disadvantages<\/p>\n

    (i)\u00a0\u00a0\u00a0\u00a0\u00a0 Complexity in transport<\/p>\n

    (ii)\u00a0\u00a0\u00a0 Complexity in payment systems<\/p>\n

    2)\u00a0\u00a0\u00a0\u00a0\u00a0 Strategic Sourcing and logistics model<\/p>\n

      \n
    1. a) Contingency theories suggest that optimal design is determined by interaction between firm characteristics and its environment<\/li>\n
    2. b) Purpose of model<\/li>\n
    3. i) To predict sourcing strategies resulting in maximum performance based on:<\/li>\n<\/ol>\n

      (1)\u00a0\u00a0 Product<\/p>\n

      (a)\u00a0\u00a0\u00a0 Asset specificity<\/p>\n

      (b)\u00a0\u00a0 Materials cost<\/p>\n

      (2)\u00a0\u00a0 Organization<\/p>\n

      (a)\u00a0\u00a0\u00a0 Operational effectiveness<\/p>\n

      (b)\u00a0\u00a0 innovativeness<\/p>\n

      (3)\u00a0\u00a0 location conditions<\/p>\n

      (a)\u00a0\u00a0\u00a0 foreign exchange volatility<\/p>\n

      (b)\u00a0\u00a0 tariffs<\/p>\n

      (c)\u00a0\u00a0\u00a0 infrastructure<\/p>\n

      3)\u00a0\u00a0\u00a0\u00a0\u00a0 Sourcing strategies<\/p>\n

        \n
      1. a) Types<\/li>\n
      2. i) Internal sourcing<\/li>\n
      3. ii) External sourcing<\/li>\n<\/ol>\n

        iii)\u00a0\u00a0\u00a0\u00a0 Degree of international sourcing<\/p>\n

        (1)\u00a0\u00a0 National<\/p>\n

        (2)\u00a0\u00a0 Near neighbor<\/p>\n

        (3)\u00a0\u00a0 Global<\/p>\n

          \n
        1. b) Selection factors<\/li>\n
        2. i) Product influences<\/li>\n<\/ol>\n

          (1)\u00a0\u00a0 Higher specificity products more likely to be sourced externally and internationally<\/p>\n

          (2)\u00a0\u00a0 Higher material cost products more likely to be sourced externally and internationally<\/p>\n

            \n
          1. ii) Organizational influences<\/li>\n<\/ol>\n

            (1)\u00a0\u00a0 Efficient organizations are less likely to source externally and internationally<\/p>\n

            (2)\u00a0\u00a0 Innovative organizations are more likely to source externally and internationally<\/p>\n

            (3)\u00a0\u00a0 Organizations with high R&D are less likely to source externally and internationally<\/p>\n

            iii)\u00a0\u00a0\u00a0\u00a0 Country conditions<\/p>\n

            (1)\u00a0\u00a0 Organizations located in countries with low exchange volatility are more likely to source externally and internationally<\/p>\n

            (2)\u00a0\u00a0 Organizations located in countries with low tariffs are more likely to source externally and internationally<\/p>\n

            (3)\u00a0\u00a0 Organizations in countries with good infrastructure are more likely to source externally and internationally<\/p>\n

            4)\u00a0\u00a0\u00a0\u00a0\u00a0 Logistics Strategies<\/p>\n

              \n
            1. i) Product influences<\/li>\n<\/ol>\n

              (1)\u00a0\u00a0 Products with higher specificity are more likely to require good supplier communications, integrated transport, reliable delivery<\/p>\n

              (2)\u00a0\u00a0 Products with higher materials costs are more likely to require good supplier communications, integrated transport, reliable delivery<\/p>\n

                \n
              1. ii) Organizational influences<\/li>\n<\/ol>\n

                (1)\u00a0\u00a0 Efficient organizations are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                (2)\u00a0\u00a0 Innovative organizations are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                (3)\u00a0\u00a0 Organizations with high R&D are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                iii)\u00a0\u00a0\u00a0\u00a0 Country influences<\/p>\n

                (1)\u00a0\u00a0 Organizations located in countries with low exchange volatility are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                (2)\u00a0\u00a0 Organizations located in countries with low tariffs are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                (3)\u00a0\u00a0 Organizations in countries with good infrastructure are more likely to use good supplier communications, integrated transport, reliable delivery<\/p>\n

                  \n
                1. iv) Total cost of ownership and financial performance<\/li>\n<\/ol>\n

                  (1)\u00a0\u00a0 The appropriate logistics and sourcing strategies minimize the total cost of ownership<\/p>\n

                   <\/p>\n

                   <\/p>\n

                   <\/p>\n

                   <\/p>\n

                   <\/p>\n","protected":false},"excerpt":{"rendered":"

                  Martin Faering and Sameer Prasad Logistic Information Management 1999, Vol. 12, No. 6, p. 451-459   1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction a) Developed nations i) Finding it difficult to compete with operations located in emerging markets ii) Two strategies (1)\u00a0\u00a0 Locating operations in emerging markets (2)\u00a0\u00a0 Sourcing from emerging markets (a)\u00a0\u00a0\u00a0 Benefits: (i)\u00a0\u00a0\u00a0\u00a0\u00a0 Reduced costs (ii)\u00a0\u00a0\u00a0 Improved quality […]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-446","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=446"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/446\/revisions"}],"predecessor-version":[{"id":447,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/446\/revisions\/447"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}