1. Forces Driving the Borderless World
Economic growth
Supply chain perspective
Regionalization
Technology
Deregulation

2. Economic growth 2-digit growth after WWII
Expansion, efficient operation, and wider product line
New manufacturing methods and technology
Excess capacity (have to expand to global market for higher profit)
Developed to developing countries
Requires integration of manufacturing and logistics and marketing capabilities

3. Supply chain perspectives
Moving from within enterprise perspective to supply chain
Shifting control from inside to outside-outsource
Combining resources for more value-added
Global alliances for higher profit
To service global customers better

4. Regionalization
To promote regional trade and protect trading partners from outside competitors
NAFTA, European common market
Countries with comparable population and economic strength
By reducing tariffs, minimizing customer requirements, developing common shipping documentation, and supporting common transportation and handling systems
To treat interregional movements as if they had the same origin and destination

5. Technology
Mass market communication exposed international customers to foreign products
Convergence of global needs and preferences
(NIKE, Mobil phones, …)
Increased capability to exchange information
Order placing, fund transfer, customs clearance
Demand for world-class products and services

6. Deregulation Financial deregulation Currency exchange
Global financial information standards
Elimination of the gold standard
Floating rates to facilitate free currency movement and synchronize global economy
Transportation deregulation
Privatization
Bilateral agreements

7. Barriers to global logistics
Markets and competition
Financial barriers
Distribution channels

8. Markets and competition
Entry restrictions
Legal or physical barriers on importing
Information availability
Documentation requirements
Pricing
Exchange rates (when to sell?)
Tariffs (GATT)
Competition
Home enterprise vs foreign companies

9. Financial barriers Difficulty in forecasting
Customer preferences, exchange rates, government policies
Institution infrastructure
Differences in banking, legal issues, system processing, inflation

10. Distribution channels
Infrastructure standardization
Differences in transportation and material handling equipment (vehicle dimensions, measurement standards), warehousing facilities, and communication systems
Trade restriction
Volume restrictions vs inventory build-up
Increased logistics costs

11. Global challenge Distance Documents Diversity in culture
Demands of customers

12. The complexity of GLM
Finding partners for consistent quality and performance
Postponement of production and customization
Delivery and transportation issues
Exchange rates and purchasing
Consistency of products and services in different cultural settings
Customer satisfaction with standardized or customized products and services