GLOBA L P ROD U CTION

OUTSOURCING AND
LOGISTIC
E N G K U H A N I S S H U H A DA B I N T I E N G K U S E N U S I 2 4 7 6 4 9
NORSAZALINA BINTI SAPRI 247705
NURUL AMIRA BINTI MOHAMAD SOBRI 247662
N U R ‘ A I N N A Z U R A H B I N T I I S M A YAT I M 247650
GLOBAL PRODUCTION
 PRODUCTION ACTIVITIES SHOULD BE
LOCATED BASED ON THREE VITAL FACTORS
Technological
Product Factors
Factors
• The availability • The level of • The minimum
of skilled labor fixed costs efficient scale
and supporting • The flexibility • flexible
industries of technology manufacturing
• Transportation technologies
costs
EXAMPLE GLOBAL PRODUCTION
COMPANY

Walmart International has more than 6,200 retail

units, operating outside the United States with 55
banners in 27 countries.
Walmart use their size and scale to provide access to high-
quality goods and fresh, nutritious food at everyday low
prices while creating opportunities for their associates
with small and medium-sized global suppliers
 OUTSOURCING
• ALSO KNOWN AS BPO(BUSINESS PROCESSING OUTSOURCING)
• DEFINITION: THE PROCESS OF HIRING ANOTHER INDIVIDUAL OR COMPANY, EITHER
DOMESTICALLY OR INTERNATIONALLY, TO HANDLE BUSINESS ACTIVITIES
• COMMONLY PRACTICED BY SMALL AND DEVELOP SIZED BUSINESS
• Factors of outsourcing:-
i. To gain services skills the company find Hard to develop.
ii. Lack of financial
iii. Manpower restrictions
DIVIDED INTO FEW CATEGORIES:
• Inbound Customer Service
• Outbound Telemarketing
• Web Design & Development
• SEO and Online Marketing
• Back Office / Admin Support
• Virtual Assistant Services
• Accounting and HR Management
• Marketing & Sales Support
 TIPS FOR OUTSOURCING
• Make some research about the company you want to hire to do your business
entities

• Ask the former/ current customer about their satisfaction with the client

• Find out what type of workload the firm is accustomed to handle

• Make sure you comfortable with who will be doing your work.
 WHAT IS LOGISTICS?
• Logistics is the activity that controls the transmission of physical materials
through the value chain, from procurement (is how the raw materials for the
product are obtained) through production and into distribution.

• 2 Types of Logistics:
• -Inbound
• -Outbound
 TYPES OF LOGISTICS
INBOUND LOGISTICS
• are the receiving, storing, and distributing of raw materials used in
the production process

OUTBOUND LOGISTICS
• is the distribution of the final product to consumers.
 EXAMPLE:
The Coca-Cola Company selected Oracle Transportation
Management and deployed it to manage inbound transportation
between supplier networks and its plants. To date, five carriers are
fully integrated on the system, and Coca-Cola expects to have 15 of
its 30 inbound carriers online by the end of the 2011, and all inbound
carriers online by the end of the first quarter 2012. The company is
concurrently working to deploy the solution for all outbound
transportation providers—about 15 carriers who transport products
between the plants and bottling partners and customers, worldwide.
CASE STUDY
FUJITSU DRIVES
OUTSOURCING FOR
T O Y O TA
 WHAT IS TOYOTA COMPANY?
• Toyota Motor Corporation is
the third largest automaker
in the world
• Global sales of Toyota and
Lexus brand, combined with
those of Daihatsu and Hino
• In March 2002, besides have
12 own plants in Japan,
Toyota has 54 manufacturing
companies in 27 countries
which produce Lexus and
Toyota brand vehicles and
components
• markets vehicles in more
than 160 countries.
 THE ISSUE
• Because of a medium size organization, Toyota
Australia is not justified to invest so much on
manpower to support the major IT activity
 THE SOLUTION
• Toyota use outsourcing method to solve the issues
• An outsourcing contract signed between Toyota
Australia and Fujitsu in 1997. Around 77 Toyota IT staff
transferring to Fujitsu as full-time employees.
• Fujitsu has become the trusted outsourced partner in
managing gain the latest software and hardware. Fujitsu’s
IT experience has benefits Toyota in IT capability,
capacity and coverage that Toyota need to achieve in
order to stay competitive
• Toyota has outsourced most of the vehicle content, even
the engines as well as software and hardware
 THE ADVANTAGES OF TOYOTA TOOK THIS
ACTION IS DUE TO THE OUTSOURCING
ADVANTAGES, SUCH AS:
• Acquire new skills and better management
• Enhance controls through all of the Toyota’s branches in Australia
• Avoid major investments and commitments because these investments will
affect the cost of the cars offered in the market.
• Handle overflow situations since maintaining large mainframes are not an easy
task especially during the downtime of the systems.
 CONCLUSION
• By outsourcing, it could be more flexible and better take advantage of the
latest developments in technology.
• Fujitsu's close relationship with major technology suppliers allows Toyota to
gain access to the latest hardware and software
• Fujitsu's global IT experience provides Toyota the IT capability, capacity and
coverage they need to achieve and sustain competitive advantage in today's
rapidly changing business marketplace
• Outsourcing its day-to-day IT management and supporting functions to Fujitsu,
Toyota can concentrate energies on future strategies for systems without
worrying about operational issues.
 THE END
THANK YOU