Global-Sourcing-and-Vendor-Risk-Management-in-Supply-ChainsVIP专享VIP免费

Global Sourcing and Vendor Risk Management in Supply ChainsProf. T. R. Natesan Endowment Lecture, ORSI, Chennai ChapterNovember 23, 2010Dr. A. Ravi RavindranProfessor of Industrial EngineeringREFERENCE Ravindran, A. Ravi, R. Ufuk Bilsel, Vijay Wadhwa and Tao Yang, “Risk Adjusted Multi Criteria Supplier Selection Models With Applications”, International Journal of Production Research, vol. 48, No. 2, PP. 405-424, January 2010.Nov. 23, 2010A. Ravi Ravindran (Penn State)2Nov. 23, 2010A. Ravi Ravindran (Penn State)3AgendaSupplier Selection problem and its ImportanceSupplier Risk ManagementCost of supply disruptionsRisk Identification and AssessmentRisk Mitigation StrategiesMulti Criteria Models for Supplier SelectionCase Study ResultsSupplier Selection Process In most procurement situations buyers have to choose among a set of suppliers. The buyer must choose which suppliers to order from and how much to order from each supplier.45Importance of Sourcing DecisionsWal-Mart assumed responsibility for global procurement from a third party in 2001 to better coordinate entire global supply chain from product development to delivery.Raw material cost is 40-60% of production cost for US manufacturers; for high tech companies, it can be up to 80%.Example : General MotorsCost of components and parts from outside suppliers exceed 50% of sales (2001 GM sales $180 billion)Life cycle of a new car18 months of concept phase, 18-24 months of Development phase, 7 years of program life to build cars for sales and 15 years of parts life for serviceMajor sourcing decisions with key suppliers are made 3 years before actual production!Nov. 23, 2010A. Ravi Ravindran (Penn State)6Vendor Management Cost Reduction Vers...