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Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage by John E. Bell, Thomas J. Goldsby, Chad W. Autry

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7. Implications for Sourcing/Procurement: Natural Resource Scarcity

At the beginning of 2012, government officials in Regina, Saskatchewan, were already looking forward to the year’s end, when construction on an important bridge spanning the Saskatchewan River would be finished. Their hopes were dashed shortly thereafter when, in late January, they announced the project would have to be delayed because of unexpected shortages in steel needed to craft the bridge’s girders. In North America, where the raw materials were to be procured, only certain mills could supply the specific type of steel needed to make the girders. Thus, the company charged with buying the steel to make the girders was unable to purchase the necessary quantities of raw materials ...

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