The Four Corners of the Earth: The Right Position For Global Manufacturers

The Four Corners of the Earth
THE RIGHT POSITION FOR
GLOBAL MANUFACTURERS
white paperTABLE OF CONTENTS PAGE
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
A Fully Rounded View of the Globe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Geography Tests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
The Diversified Supplier Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Adapting to Local Cultures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
The New Customer Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
A True World View through Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Executive SummaryManufacturers should adopt a well-rounded view of globalization as a proactive strategy that enables them toexploit new markets and gain new customers, rather than simply as a response to low-cost manufacturing.Globalization requires the manufacturer to diversify more than just its plant locations; it demandsdiversification of the supplier base, the company culture, its customer base and every other aspect of itsoperations.
Challenges to globalization can be considerable, including significantly increased complexity of the supplychain; the need to adapt to local cultures, customs and business practices; the requirements of newcustomers in new markets; and balanced manufacturing within their organization in best-cost countries. Thenormal challenges of a domestic market-like driving lean, customer satisfaction, shorter time to market andenabling the supply chain-become more complex in a global company.
The ultimate goal of globalization is to consistently and profitably grow the business. Despite the challenges,the results can be highly rewarding, with more flexibility among manufacturing locations, suppliers anddelivery options; much higher customer satisfaction; and the ability to surge ahead of competitors instead ofsimply keeping up with them.
Business and technology solutions are essential to overcoming the barriers and reaping the benefits ofglobalization. Supported by supply chain planning and execution, customer management, leanmanufacturing, quality management, and ERP solutions that automate and control the company's processes,globalization can transform the manufacturer's business. The company gains a true, world view of itsmarketplace. With capabilities to forecast demand, plan production and strategically manufacture and shipproducts from the most cost-effective locations, the manufacturer can become a dominant player in a globalenvironment.
By employing technology to surmount the challenges of globalization, manufacturers can expand theirbusinesses profitably to incorporate new markets, new levels of innovation and new revenue streams.
A Fully Rounded View of the GlobeWhen manufacturers approach globalization, often they set sail on a course based on the concept of a "flatearth." They are being pulled into transcontinental transactions to find the low-cost manufacturing and/orraw-material sourcing they need to stay in business. Competition is on their heels and, reluctantly, they sticka toe in the surf and struggle through.
This is a strategy that's certain to gain flat, minimal results. Companies going global just to keep up will doprecisely that-just keep up. They have gained little or no strategic advantage over their competitors noradded value for their customers. Perhaps they have reduced their costs, but often the savings they seek onmaterials and parts are drowned in the complexities and expenses of establishing a link to overseasresources.
The world-class businesses that truly succeed are those that adopt a more well-rounded view of globalopportunities-an understanding that globalization presents the opportunity to develop new markets and anew approach to the way they do business. In this "round-earth" strategy, sailing out to previously unexploredgeographies eventually brings you back a we... [download for more]