Global Sourcing and Logistics

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Contents The case for transformation 4 Key challenges 6 Guiding principles 8 How to achieve success 9 Excellence in execution 10 Collaboration without complexity 15 Accenture's global network 16 Tools and assets 18 Global gains 21 Procurement contacts 22
According to an Accenture survey 1 , 230 global supply chain executives plan to double their low-cost country sourcing activities in the next three years; they also believe the savings achieved from such sourcing will increase by a third. Market globalization is changing the face of multinational organizations. In their efforts to restructure to comply with local regulations and take on the challenge of increasing competition from new Asian brands, companies have turned to low-cost countries in their search for increased supplier capacity. As high-cost country supply bases consolidate, low-cost countries are increasingly attractive to businesses that want to boost their bargaining power and achieve greater savings. There is also a clear shift to categories of goods with more technical and engineering components—a migration from traditional segments, such as transportation and travel services, food and consumer products, and retail—to high-growth, highly attractive markets to create more value. 2 Our research into the role of supply chain mastery 3 shows that high-performance businesses have a deep understanding of current and future value and effectively leverage those insights to implement differentiated operating models and business architectures. More than ever, leading companies are using the supply chain to enhance differentiation, increase sales, and penetrate new markets and channels. The approach you take to global sourcing and logistics can be one way to achieve that differentiation. Has your existing operating model been adapted to meet the challenges of a global market? Are you satisfying your company's stakeholders' relentless demands for a constant wave of innovative products and services? Accenture understands what is required to help companies accelerate their journey to high performance. High performers push the envelope. They transform industries. They outperform their competition, and themselves. Our groundbreaking research and deep experience can help you achieve high performance by attaining—and profiting from—your global sourcing and logistics goals. 1 Source: "Where East Meets West: Driving high performance in low-cost country sourcing" Accenture, 2005. 2 Source: "Global Sourcing and Logistics for High Performance: Leading practices and the emerging role of international procurement organizations in China." 3 Source: "Creating and Sustaining the High- Performance Business: Research and Insights on the Role of Supply Chain Mastery," Accenture. 3
Page 1: Global Sourcing and Logistics A roa
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 and 14: Procurement outsourcing In addition
Page 15 and 16: Reference the following chart to co
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

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