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The 10 Keys to Global Logistics Excellence

Supply Chain Thought Leadership Series

The 10 Keys to Global Logistics Excellence
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The 10 Keys to Global Logistics Excellence

Table of Contents
Global Supply Chain – You Better Be Good…………… Time and Distance……………………………..……………… Where Do the Lost Savings Go? …………………………. The 10 Capabilities of Global Logistics Leaders…….. Lack of Global Technology Enablement …..………….. Summary………………………….................................... Sponsor Perspective …………………………………………. About Supply Chain Digest……………………………...... Global Logistics Capability Diagnostic………………… . End Notes ……………………………………………………….. 1 2 3 5 13 14 16 17 18 25

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The 10 Keys to Global Logistics Excellence
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Those two factors add cost, complexity, and frequently risk. Many companies early in their offshoring evolution find that managing this new set of skills and capability requirements is extremely challenging. Often, savings expected from the global sourcing initiatives fail to materialize, at least in part. SCDigest, for example, recently profiled a consumer hardware company that illustrates this reality1. Under pressure from major big box retailers for lower prices, the company is in the process of moving much of its manufacturing capacity to China and other low cost country sources. To this point, however, the expected savings from offshoring have not materialized. The company is just starting to analyze the factors, with no clear answers yet, other than a belief that there were many “hidden” costs that were not fully anticipated. This is a scenario that we hear on a consistent basis. In fact, a recent survey from McKinsey and the U.S. Chamber of Commerce of Western companies importing product from China found that the majority of respondents believed they were behind their competitors in such areas as total landed cost savings from offshoring, on-time delivery, and other key supply chain metrics (see illustration below)2. Considering that generally companies tend to over rate their performance versus others, this data is a powerful statement of the challenges of doing global supply chain
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