P A R T
T H R E E
Supply Chain
Logistics Design
One of the two primary responsibilities of a firm’s logistics management, as established in Chapters 1 and 2, is to participate in supply chain logistics design. Part 3 contains three chapters devoted to various logistics design issues. Chapter 12 establishes the global perspective of today’s business operations. Few firms enjoy the simplicity of conducting business within a single nation. The complexity of globalization has increased as a result of extended operational reach. Given the dynamic nature of contemporary business, it is not unusual for managers to conduct continuous evaluations of their logistics support structure. Chapter 13 focuses on network design. An integrative model is developed and illustrated that combines the temporal and spatial dimensions of logistics into a single theoretical framework. The integration structure provides the basis for process development, trade-off quantification, and integrative measurement. In Chapter 14, network structure is operationalized in terms of methodology and technique to guide logistical systems design. A step-by-step design process provides a guide to deal with channel structure and strategy design and implementation. Chapter 14 also presents an overview of operational planning and analysis tools to assist managers in dealing with logistics operations. bow77872_ch12_287-301.indd 287
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C H A P T E R
T W E L V E
Global Supply
Chains
Chapter Outline
Global Economies
Global Supply Chain Integration
Logistics in a Global Economy
Stages of International Development
Managing the Global Supply Chain
Global Sourcing
Rationale for Low-Cost-Country Sourcing
Challenges for Low-Cost-Country Sourcing
Guidelines for Sourcing
Summary
Globalization offers many opportunities and challenges for logistics and supply chain operations and strategies. The opportunities