Leveraging Global Sourcing Strategies through Logistics Operations: The International Engines South America Experience

This paper identifies and discuss how a set of logistics and Supply Chain business process have been allowing International Engines South America to achieve successful results in its export projects. Initially, a briefly literature review presents some common business practices applied on International Logistics operations and in the Automotive Industry. A discussion about Supply Chain and Global Sourcing strategies are presented as well. Second part of this paper shows how International Engines deployed customer requirements for two different projects - the export operation of a Diesel Engines for 4 different plants in US applying Postponement strategy and VMI replenishment model to deliver more than one hundred configurations line set sequenced and the export operation of Diesel Engines Cylinder Heads applying also VMI and returnable packaging in the line hauling from Brazil to US. The paper concludes stating a list business practices breaking down in categories that have allowed International Engines South America to provide cost effectiveness and responsiveness for their offshore customers and explore the complementary relation that some of these business practices have with each other.