Kevin Leung explores the decision-making process of firms considering outsourcing procurement, production, and logistics to increase profitability. Using Li & Fung as a case study, he discusses the impact on costs, responsiveness, risk, and strategy, highlighting the benefits of leveraging a global supply chain manager for various aspects of the business.
In 2010, Raytheon faced a supply crisis for its Tomahawk missiles due to China’s rare earth elements (REEs) policy. With 97% of REEs mined in China, their export restrictions led to global supply disruptions. Options included investing in China or lobbying the US government, with the latter recommended for long-term benefits.
Delve into Starbucks’ intricate global supply chain, spanning 64 countries and involving 9,000 suppliers. With a focus on sustainability and quality, the analysis explores risks like commodity price volatility and geopolitical challenges, offering insights into Starbucks’ mitigation strategies to maintain its leadership in the coffee industry.