Seizing & Sustaining the opportunity • Globalisation: longer lead times and a need for greater flexibility • Increasing logistics costs: In the last 5 years transportation costs have increased by 50% • Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk • Rising labour costs: Globalisation has been happening for some 20 years… in China in the last 5 years labour costs have increased on average by 20% year on year • Core material volatility – increasingly scarce resource = volatility Hedging/Supply risk management • Companies with major supply chain disruption suffer up to 20% share price falls. … see Georgia Tech research USA www.mgt.gatech.edu The world’s largest procurement and supply professional organisation
Seizing & Sustaining the opportunity. Globalisation: longer lead times and a need for greater flexibility Increasing logistics costs: In the last 5 years transportation costs have increased by 50% Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk - PowerPoint PPT Presentation
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Seizing & Sustaining the opportunity
• Globalisation: longer lead times and a need for greater flexibility
• Increasing logistics costs: In the last 5 years transportation costs have increased by 50%
• Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk
• Rising labour costs: Globalisation has been happening for some 20 years… in China in the last 5 years labour costs have increased on average by 20% year on year