Fashion, apparel, textile, merchandising, garments

1. Global Supply Chains April 14, 2008 Gianluca Spina – MIP, Politecnico di Milano [email_address]

4. “ Pain Points” in global SC Survey in 10 top global manufacturers (Handfield e Steininger, 2006) Participants: over 100 SC senior executives (VPs and Directors) Fragmentation due to outsourcing and offshoring (LCC) 31% Lack of project mgmt and resources ( do more with less ) 12% Poor internal coordination among functions, depts, subsidiaries etc.. 10% Price fluctuations of commodities 10% LCC competition 10% Competence shortage 7% Power shift to retailers 7% Regulations & Security (post 9-11) 7% Information systems integration 5% Protection of intellectual property 2%

5. Local processes and global processes Local processes Global processes Sourcing markets Final markets Sourcing Prod/Ass Distrib. Sourcing Prod/Ass Distrib.

9. Globalization strategy in the automotive industry

10. Porsche and BMW: both compete globally

11. … but through different manufacturing and supply strategies

15. Dell Supply Chain Global suppliers Logistic centres End customers Dell plants Local suppliers Supplier-controlled 3PL Dell-controlled Suppliers of peripherals

25. Case: Enel – Power generation (*) Financial, Insurance Total Cost of Ownership: additional task to manage: travel, translation, consulting, expats, additional inspections 20 3 40 40 10 6 30 8 Current price Price from global sourcing Labor Materials Variable costs Overhead + Margin 100 57 Transport Customs Inventory Others* 5 2 1 2 67 Totale cost from global sourcing Real Saving o: 33 ? Hidden costs?