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1 Supply Chains and the impact of Globalisation The World Customs Organization Barry Saxton June 2006
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2 The Information and Technology Age Part 1 - 1950 – 1990
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3 The Information and Technology Age Part Two – 1990 to Present
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4 Evolution or Revolution?
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5 Evolving Global Supply Chains
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6 Flow of goods Flow of information Flow of money Traditional supply chain Traditional view of a Supply Chain
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7 Real collaboration An integrated demand network Key Issue: Information & IT
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8 The Holy Grail of competitive advantage!
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9 Cost and time versus value? Customer order cycle Regional stock In-transit Finished product Production Raw material stock Source: (Martin Christopher:Logistics and Supply Chain Management) Value add Time Place Form Cost added Production, storage and transport costs and time cost of money
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10 The complexity masters
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11 A reality check!
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12 Emergence of Multinationals An estimated 30% of world trade is handled by multinational organisations Larger, More powerfull Beyond national interests Laws, Taxes, Accountability, Ownership
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13 The Distribution Channels Re distribution Local Regional Cross Border Deferment Final assembly Free Zones Key Hubs Facilities
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14 The global paper chase Electronic flow of information Multi party / multi source Physical / intellectual Accessibility Standardisation Authoritisation Controls Integrated Networks
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15 So What Should We Be Doing?
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16 So what does this mean to the WCO ? Recognise speed and strength of change in global trade Pro active vs Reactive Avoid Information vs physical flow constraints Ensure Speed in the process Allow for Flexibility Recognise the nature of changing entities Increase visabilty – globally Embrace emerging complexity masters Develop integrated systems Assist in developing facilities for the new world
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17 Government Growth Strategies Which government’s are dragging their feet? -25% -20% -15% -10% -5% 0% 5% 10% 15% 25% 20% © Strict copyright Brett Bowes and Steuart Pennington. All rights strictly reserved. Source: World Competitiveness Survey 2006 ArgentinaItalyPoland Brazil MexicoFrance USA India China Mainland United Kingdom KoreaJapanGermanyMalaysia Israel Singapore Thailand SwedenCanada IcelandChileHong Kong IrelandScotlandNorwayIndonesiaAustralia South Africa SwitzerlandRussiaDenmarkFinland Negative ContributionBalanced ContributionPositive Contribution
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18 World Customs Organisation Barry Saxton, June 2006
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