Going Global — When and How

Section 6.6 described spheres, or businesses within the business. Spheres are the market-product-operations combinations that justify their own supply chain design. The sphere framework is particularly useful in deciding the role for globalization in supply chain design. Here we use the examples in Chapter 6 to apply the tool to developing global supply chains. 

Sphere A all markets-all products-machined component suppliers 

Sphere B all markets-product 2/product 2/product 2 manufacturing facilities 

The following sections describe globalization issues that might be considered in designing a supply chain for each of these spheres. 

This sphere contains the supplier base for machined parts for all its products and their markets. These would likely be customized products made to the company s specifications for all the manufacturing facilities and all its products. The category of subcontracted material from Table 7.1 will loom large in the income statement. Technically capable suppliers and effective communications with them will be important to company success. 

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