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Global Sourcing and Logistics

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According to an Accenture survey 1 , 230 global supply<br />

chain executives plan to double their low-cost<br />

country sourcing activities in the next three years;<br />

they also believe the savings achieved from such<br />

sourcing will increase by a third.<br />

Market globalization is changing the face of multinational<br />

organizations. In their efforts to restructure to comply with local<br />

regulations <strong>and</strong> take on the challenge of increasing competition<br />

from new Asian br<strong>and</strong>s, companies have turned to low-cost<br />

countries in their search for increased supplier capacity.<br />

As high-cost country supply bases<br />

consolidate, low-cost countries are<br />

increasingly attractive to businesses that<br />

want to boost their bargaining power <strong>and</strong><br />

achieve greater savings. There is also a clear<br />

shift to categories of goods with more<br />

technical <strong>and</strong> engineering components—a<br />

migration from traditional segments, such<br />

as transportation <strong>and</strong> travel services, food<br />

<strong>and</strong> consumer products, <strong>and</strong> retail—to<br />

high-growth, highly attractive markets to<br />

create more value. 2<br />

Our research into the role of supply chain<br />

mastery 3 shows that high-performance<br />

businesses have a deep underst<strong>and</strong>ing of<br />

current <strong>and</strong> future value <strong>and</strong> effectively<br />

leverage those insights to implement<br />

differentiated operating models <strong>and</strong><br />

business architectures. More than ever,<br />

leading companies are using the supply<br />

chain to enhance differentiation, increase<br />

sales, <strong>and</strong> penetrate new markets <strong>and</strong><br />

channels. The approach you take to global<br />

sourcing <strong>and</strong> logistics can be one way to<br />

achieve that differentiation.<br />

Has your existing operating model been<br />

adapted to meet the challenges of a global<br />

market? Are you satisfying your company's<br />

stakeholders' relentless dem<strong>and</strong>s for a<br />

constant wave of innovative products<br />

<strong>and</strong> services?<br />

Accenture underst<strong>and</strong>s what is required to<br />

help companies accelerate their journey to<br />

high performance. High performers push<br />

the envelope. They transform industries.<br />

They outperform their competition, <strong>and</strong><br />

themselves. Our groundbreaking research<br />

<strong>and</strong> deep experience can help you achieve<br />

high performance by attaining—<strong>and</strong><br />

profiting from—your global sourcing <strong>and</strong><br />

logistics goals.<br />

1 Source: "Where East Meets West: Driving high<br />

performance in low-cost country sourcing"<br />

Accenture, 2005.<br />

2 Source: "<strong>Global</strong> <strong>Sourcing</strong> <strong>and</strong> <strong>Logistics</strong> for High<br />

Performance: Leading practices <strong>and</strong> the emerging role<br />

of international procurement organizations in China."<br />

3 Source: "Creating <strong>and</strong> Sustaining the High-<br />

Performance Business: Research <strong>and</strong> Insights on<br />

the Role of Supply Chain Mastery," Accenture.<br />

3

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