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0:00
I'd like to welcome you
to this presentation
on the Impact of Globalization
on Supply Chains.
My name is John Mangan,
and I'm a professor
of Marine Transport
and Logistics
at Newcastle University
in the United Kingdom.
0:15
Today's presentation
is divided up into four parts.
Firstly, we answer the question
what is globalization,
and we will divert to define
and maybe
even to measure globalization.
The second part will look at
the very considerable growth
in global trade
that has occurred
over the of last 50 to 60 years,
and in particular the importance
of Marine containerization.
In the third part
of the presentation,
we'll examine the whole area
of extended logistics reach,
looking at how firms through
foreign direct investments
setup subsidiaries overseas,
which is obviously related
to increase outsourcing
and offshoring
and the more recent phenomenon
of nearshoring.
And we look at all of the costs
associated with this,
understand the concentration
of international trade traffic
that goes with this
extended logistics reach.
And finally in the fourth part
of the presentation,
we look at enhancing
the competitiveness
of the global supply chain
examining issues,
such as sustainability
and roll played
by logistics service providers
in truly facilitating
the global supply chain.
1:26
I'd just like to start
then with a very simple slide
and on this slide
you can see two pictures,
they both relate
to moving product by sea.
The first, dates to 1912
and this in fact,
a view of Dockers handling kegs
and you could see there's
a lot of manual handling here,
it's labor intensive,
and also
obviously low technology,
to not exploiting what we would
call economies of scale.
We fast forward
to the bottom part of the slide,
what you've got is
one of the new Maersk vessels,
these are
these giant container ships,
these are now
trading across the seas
with the consigned capacity
booked at 14,000 TEUs
and the TEU is
a Twenty-Foot-equivalent unit.
So most boxes that you see,
such as those
on this Maersk vessel,
they are typically
two TEU in length
and this vessel has
the capacity of 14,000 TEUs.
So in less than a 100 years,
you can see that the transition
which has occurred
from a very labor-intensive
manual handling,
low volumes for cargo
as depicted on the top
left hand inside of the screen.
And then the bottom
part of the screen,
you've got this huge
14,000 TEU vessel operating
with minimal crew,
exploiting huge economies
of scale.
And in a sense,
this evolution
from manual handling
to scale-based efficiency
in logistic systems,
has really been
the driving force
behind a lot of the growth
in the international trades,
globalization that we see today
and the ability for global
supply chains to function.
