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Module 7: Global Supply Chain Management - ASU's W. P. Carey School
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Module 7: Global Supply Chain Management - ASU's W. P. Carey School

Understanding the Complexities of Global Supply Chain Management

The Importance of Manufacturing Facilities

  • Organizations that produce goods depend heavily on high-quality suppliers and efficient logistics systems, but the core of their success lies in having excellent manufacturing facilities.
  • Many companies are considering relocating their manufacturing to countries with cheaper labor and tax incentives, often overlooking the complexities involved.

Risks of Relocation

  • Comparing relocation to receiving a heart transplant illustrates that simply changing a facility does not guarantee immediate improvement; it can cause significant trauma and require time for recovery.
  • A new facility (like a healthy heart) does not ensure overall health if other operational aspects (bones, muscles, etc.) are not equally robust.

Role of Global Supply Chain Managers

  • Global supply chain managers must navigate the challenges associated with relocating key facilities, akin to managing post-surgery recovery.
  • Their responsibilities extend beyond outsourcing; they also focus on expanding operations into new markets while managing potential pain points during transitions.

Successful Examples and Expert Guidance

  • Companies like Toyota, Apple, Dell, Walmart, Nokia, and Procter & Gamble exemplify successful global supply chains; such decisions should be made carefully.
Video description

Part 7 of 12 Nearly all modern supply chains have global aspects. Even successful supply chains that dont today will likely have to at least consider offshoring and global expansion in their future. This episode demonstrates how global supply chain managers are vital to facilitating and managing offshoring and global expansion projects. This is the 7th installment in Arizona State University's twelve-part introduction to supply chain management video series developed by Eddie Davila, Jeff Hough, Randy Cates, Dawn Feldman, Dan Ichikawa, Ian Schmoel, and Matt Hardy. ASU, the W. P. Carey School of Business, and the Supply Chain Management Department are proud and happy to share this video series with supply chain management departments, supply chain instructors, career specialists in high schools and universities, as well as industry leaders in an effort to inspire a new generation of supply chain management professionals across the country and around the world. For more information, visit W. P. Carey's SCM Web site at http://wpcarey.asu.edu/scm or send an e-mail to wpcarey.scm@asu.edu.