Global Sourcing and Logistics

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Just started out or already fully operational? Accenture can not only support your program, regardless of where your company is positioned in the global sourcing and logistics arena, but we can also take you further. We can grow with you and blur the lines between your team and ours, share our skills with your resources, and pool knowledge and experience to ensure you maximize the potential value from your global sourcing and logistics strategy. 14
Reference the following chart to consider where your company is in the maturity cycle today: Phase Strategy and planning Sourcing execution Supply chain optimization Long-term capability building You might ask: What can I source in low-cost countries? How do I accelerate my global sourcing and logistics plan? How do I integrate the new suppliers into my supply chain and ensure optimal logistics? How can I enhance my presence in low-cost country markets? Your current situation may be: Aware of the potential but little or no experience. Not organized or equipped for low-cost country sourcing Disappointing returns with sourcing activities to date. Speed is too low. Need to improve knowledge of the low-cost country market. Difficulties with supplier implementation and performance mean the relationship is underdeveloped. Delivery precision is poor. Effects on flexibility of production and capacity planning. Need to develop local presence by defining a strategy for each country. Consider setting up an international procurement office. The solution is to: Undertake the category assessment phase and determine the most suitable categories for low-cost country sourcing. Define pilot project and execute sourcing plan. Accelerate results by strengthening the project organization and get help in driving the sourcing activities by using a mixed team of central and local resources in low-cost countries. Integrate the existing lowcost country supply base according to a structured program with clear check points. Team up with experts to design overall logistics flow. Adjust organizational design to build local presence in major supply markets. Align procurement organization structure with global operations strategy. Collaboration without complexity Global sourcing and logistics carries its own complexities. There are many reasons why companies may hesitate before initiating projects, or why they might be reluctant or unable to take their existing sourcing strategy to the next level. Supply chain discrepancies can be costly. Supplier relationships entail their own sensitivities, but attitudes of resistance are not conducive to rapid progress. At Accenture, our practical skills and proven expertise mean that your company can begin to work differently. Instead of advancing opportunistically when resources allow, we can help you accelerate in an organized and scheduled manner, and bring fresh scope and diversity to your sourcing and logistics scenario to enable high performance. How Accenture helped: A construction equipment company: Defined which component groups are suitable for low-cost country sourcing. Defined complete sourcing program, total cost of ownership-based savings estimations, business case, and execution plan. An industrial equipment manufacturer: Achieved 30 percent total potential savings (on landed price), equating to $7.2 million on quoted parts. A global retail brand: Worked with client to redesign overall logistics network. Defined program for each supplier to synchronize production scheduling with customers. A consumer goods company: Helped set up a local procurement office in Shanghai; defined how to integrate office with global procurement organization. 15
Page 1 and 2: Global Sourcing and Logistics A roa
Page 3 and 4: According to an Accenture survey 1
Page 6 and 7: Key challenges With foreign direct
Page 8 and 9: Guiding principles Accenture's appr
Page 10: Figure 1: From strategy to executio
Page 13: Procurement outsourcing In addition
Page 17 and 18: Accenture's main low-cost country p
Page 19 and 20: Capabilities assessment tool A stru
Page 21 and 22: Global gains Sourcing is not risk-f
Page 24: About Accenture Supply Chain Manage

Global Sourcing and Logistics

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