LOGO Global Production, Outsourcing, and Logistics

LOGO Background where to locate productive activities 1 what the long-term strategic role of foreign production sites should be 2 whether to own foreign production activities or outsource those activities 3 whether to manage global logistics or outsource 4

LOGO  Production refers to activities involved in creating a product  Logistics refers to the procurement and physical transmission of material through the supply chain, from suppliers to customers

LOGO What is the strategic objectives of the production and logistics function?

LOGO  Two other objectives are important for international companies: 1.production and logistics functions must be able to accommodate demands for local responsiveness 2.production and logistics must be able to respond quickly to shifts in customer demand

LOGO Diagram country factors technological factors product factors Where should production activities be located?

LOGO Philips in China Moves with – “Go West Strategy” to Chengdu

LOGO Locating Production Facilities

LOGO Outsourcing Production: Make-or-Buy Decisions

LOGO Nike Sweatshop Problem Source: Business Insider, 2013

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LOGO Brands Caught In Sweatshop Scandals

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