During the phase of design of a supply chain network, a company. What are the biggest challenges of managing global supply. We recommend the definition of supply chain management developed and used by the global supply chain forum. Its a wakeup call for supply chain professionals to design new and improved processes and think creatively about the future. As economies around the world step back from the financial brink and begin adjusting to a new normal, companies face a different set of supply chain challenges than they did at the height of the downturnamong them are rising pressure from global competition, consumer expectations, and increasingly complex patterns of customer demand. Beyond legal issues that can stall new product introductions, this can negatively affect a brand and a buyers propensity to purchase from you in the future. Pdf global supplychain strategy and global competitiveness. The 21stcentury logistics framework is a global supply chain management theory that was developed at michigan state university and was introduced to the business world in 1999.
Supply chain management, global economy, china, logistics adam brosch is director of global sourcing, berlin packaging, 18002berlin along with the many benefits that come from sourcing outside the united states, such as lowcost manufacturing, several issues must be properly managed to ensure a successful supply chain. Understanding your value chain, and how china fits into it, can. This strategy involves the least amount of change but has the downsides of higher supplychain costs, potential delays, exchangerate risks, and isolation from local knowledge. Supply chain management aims to manage the flow of goods, information and finances among these business networks in the most efficient manner. Supply chain leadership distinctive approaches to innovation, collaboration, and talent alignment 1 imagine youre the leader of a global business maybe you are and an exciting new opportunity arises.
Here are some of the bigger issues that affect supply chain. Keywords strategy, supply chain, international hrm, upper echelons theory. Pdf product safety and security in the global supply. Sep, 2012 supply chain imperatives for success view the supply chain as a strategic asset dells innovative directtoconsumer sales and buildtoorder manufacturing create unique supply chain configurations that align with your companys strategic objectives operations strategy outsourcing strategy channel strategy supply chain configuration. Global supply chain management companies face challenges in hiring and keeping qualified talent capable of effectively managing the complex mixes of advanced technology needed to serve more. The current issue and full text archive of this journal is available at. Decamposb amichigan state university, department of supply chain management, the eli broad graduate school of management, east. In a supply chain network, facilities are the primary components where a product is manufactured or stored. However, people involved in the supply chain will not use technology unless they find it easy to adopt. But it is possible to boost performance while making supply chains more resilient. National strategy for global supply chain security securing the global supply chain, while ensuring its smooth functioning, is essential to our national security and economic prosperity. Analysing supply chains in latin america and the caribbean.
Risk in the global supply chain the supply chain arguably faces more risk than other areas of the company due to its global nature and its systemic impact on the firms financial performance. Barbara leads the logistics and distribution service offering, which includes a focus on global. In the modern global marketplace, advances in communications and. If the business strategy is to be the low cost provider, the supply chain strategy should support this. Global supply chain strategy is about architecturing your product flows in an optimal way to satisfy all the customers and suppliers along the chain. It provides realtime visibility to all the key dimensions for successdemand, supply, product, risk, and performanceacross the organization and throughout the extended supply chain. At best, supply chain strategy can be the enabler of the business strategy. The global supply chain system that supports this trade is essential to the united states economy and is a critical global asset through the national strategy for global supply chain security the strategy, we articulate the united states governments policy to strengthen the global supply chain in order to protect the welfare and. This framework complements previous classifications by adding barriers and challenges in all stages of the supply chain.
Push strategies classical manufacturing supply chain strategy. Intel corporation has one of the most resilient and robust supply chains in the world. Aligning overall organizational strategy with supply strategy. But fortunately, a few adjustments to supply chain strategy can go a long way. Three strategies to safeguard your global supply chain. Major issues facing supply chain managers and how to.
Global supply chain law blog squire patton boggs law firm. In the instance of global supply chains, it is extended around the world any company that uses parts and services from another factory overseas faces issues with global supply chain management. Supply chain risk challenges and practices one of the goals of this study was to learn the function risk plays in supply chain and operations management. With supply chain being at the core of business operations, these issues can directly affect the company in substantial ways. Pdf in order to be competitive in the world market, many exporting companies have to meet the challenges and demands posed by the. Dec 12, 2019 the decisions that are made with regards to the supply chain should reflect the overall corporate strategy that the organization is following. The publication principles of global supply chain management is a very useful book for students in the field of supply chain management studying in english and. According to pwc, bestinclass companies in global supply chain management achieve 20 percent higher profitability than others. As part of that we created a dedicated global supply chain strategy. Global supply chain risk management strategies citeseerx. This means it is an essential tool for competitiveness in a global marketplace.
We wrote the article back in 2012, honestly, many of those same challenges are still major concerns to the supply chain now. Supply chain management is the integration of key business processes from end user through. In an analysis of the top 25 supply chain of 2016, it was listed by analysist firm gartner as number 4. Offshoring strategy by french firms, leverhulme centre for research on globalisation. Protecting intellectual property rights challenges, opportunities, and solutions about the authors barbara rosenbaum is a managing director in deloitte consulting llps federal practice, specializing in supply chain management. International supply chains range from a primarily domestic business with some international suppliers to a truly integrated global supply chain. National strategy for global supply chain security. Overview of supply chain strengthening supply chain sustainability in order to provide customers with a timely, stable supply of better products and services, it is necessary to put significant effort into developing and optimizing supply chains with suppliers around the world while also taking into account environmental and human rights issues. Protecting intellectual property rights challenges. The case describes issues related to supply chain quality and how they evolve in the context of a multitiered global supply chain. Supply chain management in the global context econstor.
Careful selection and implementation of the supply chain technologies a company uses is essential for supply chain success. Global supplychain strategy and global competitiveness. Stanford initiative for the study of supply chain responsibility sisscr integration, incentives and innovation nikes strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20. Dells supply chain transformation gattorna alignment. The 5 biggest supply chain challenges and how to overcome. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. Pdf efficient supply chain management is crucial for survival and success in a turbulent.
Apics invited more than 9,000 professionals to participate in a survey, which took place from june through july 2011. A global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas. This primer provides a new way of thinking about the future of supply chainsbringing together the top procurement priorities of leading global businesses and the key forces of change reshaping the very business models that have given rise to global supply chainsto enable supply chain leaders to envision and manage futurefit supply. The case involves a global multitier automotive supply chain made up of one of the worlds largest automotive original equipment manufacturers oems, its tier 1 supplier that is also a u. Ihrm and challenges in scml for global organizations. According to many chief procurement officers, selecting a strategic supplier that provides manufacturing locations with consistent global.
Policy issues in international trade and commodities study series no. Supply chain managers face issues on a daily basis which require direct attention and quick response. An agile demanddriven supply chain requires endtoend visibility across the business from buyers and the market to supply. The amazon effect and the global supply chain supply. It involves people, information, processes and resources. The 5 biggest supply chain challenges and how to overcome them. Managing the production and transportation of goods over large distances to meet the peak period of demand can be very difficult. Managing risk in the global supply chain supply chain.
Five challenges facing the modern supply chain every angle. Superior supply chain management can facilitate marketing strategy and lead to the creation of superior customer value, satisfaction, and loyalty, which in turn lead to improved product profit margins, overall firm profitability, and overall corporate growth. Global supply chain sourcing strategy american express. Solving challenges in global supply chain management. Issues in an increasingly complex environment find, read and cite all the research you need on researchgate. How coronavirus could impact the global supply chain by midmarch. Trade and economic policies for developing countries by alessandro nicita victor ognivtsev miho shirotori unctad, geneva united nations new york and geneva, 20.
The same percentage reported using big data analytics in all areas of the supply chain, but only on an ad hoc. Global supply chain forum supply chain management is the integration of key business processes across the. As a result, supply chain executives face unprecedented challenges. Coates is the executive director of the reshoring institute and the president of blue silk consulting, a global. And just like when developing a business strategy, look to your core. I worry about supply risks in general, whether its from natural disasters or things like a troubled supplier or a variety of issues with the whole supply chain risk piece, one participant said.
Design of a global supply chain issues and concerns raj v. The amazon effect is causing a revolution in thinking across the supply chain. Global supply chains a global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas. A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. However, marketing strategy is problematic in global supply chains. In a supply chain network, facilities are the primary components. Design product that can easily modi ed for major markets and can be manufactured in various facilities.
In fact, the global supply chain management gscm literature that aims to identify challenges and barriers is characterized by focusing on one part of the supply. Creating value through supply chain integration identifying the right supply chain strategy for a specific product and a particular ebusiness model the integration of information and decision support systems in the management of the supply chain. The modern supply chain must evolve to meet new demands and supply chain challenges, and supply chain managers need to plan ahead to keep everything flowing smoothly. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations. Challenges in global supply chain management third party. However, firms may adopt broader logistic objectives than just ensuring the supply of materials for manufacturing. Supply chain management has assumed a significant role in firms performance and has attracted serious research attention over the last few years. One of the most popular articles we ever wrote discussed the five biggest supply chain challenges, as we see them from our perspective. Although risk management in multinational enterprises has been. Problems addressed supply chain management must address the following problems. Implement endtoend supply chain risk management it is one of the greatest challenges for global supply chain organizations but it can be conquered as well with adequate strategies. This is where companies must optimize demand and supply risk, manage supplier risk, and optimize working capital and asset, as well as key partner supply chain. Global supply chain management also faces the challenge of variations in customer demand that occur seasonally and over longer time periods.
The first is to promote the efficient and secure movement of goods and the second is to foster a global supply chain system that is prepared for and can withstand evolving threats and hazards, and rapidly recovery from disruptions. Requirements for global strategy implementationi no company is immediately ready for integrated global supply chain management on this scale. However, despite erp systems being a standard backbone of companies for two decades, many still struggle to gain visibility. Our blog discusses legal issues that arise in the supply chain, both those that cut across industries and those that are industry specific. Although it seems that global supply chains are designed without regard to national boundaries, but the true value of a global supply chain can only be realized by taking advantage of these. Many of the executives expressed broad concerns regarding supply chain risks. The triple bottom line of people, profit, and planet has never been more important than it is. In commerce, global supplychain management gscm is defined as the distribution of goods and services throughout a transnational companies global network to maximize profit and minimize waste. Integration, incentives and innovation nikes strategy to. Cost, quality, and delivery typically dominate supplier relationship deliberations.
Essentially, global supply chainmanagement is the same as supplychain management. Product safety and security in the global supply chain. Here are five such adjustments we would suggest in 2020. Supply chain strategy is not simply a linear derivative of the business strategy.
Even big international companies must strive in order to remain competitive and not lose. Supply chain managers have seen increasing challenges to create, and keep, efficient and effective supply chain methods. Global practices and lessons learned for latin america and the caribbean 5. Risk is a fact of life for the supply chain professional due to the long list of forces that drive supply chain. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network. Issues, challenges, frameworks and solutions article pdf available in international journal of production research 527 april 2014 with 4,512 reads how we measure reads. Partly thats because that stuff is hard to control. One of the most popular articles we ever wrote discussed the five biggest supply chain challenges, as we saw them back in 2012.
I worry about supply risks in general, whether its from natural disasters or things like a troubled supplier or a variety of issues with the whole supply chain. Three strategies to safeguard your global supply chain for fear of hurting performance, many executives are reluctant to take steps to mitigate their companys supply chain risk. With the globalization of manufacturing operations, having a global procurement network that can support and react to your supply chain needs is important. The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain. Although the global supply chain is longer and more complex, it would be wrong to assume that the domestic supply chain. Here we discuss five of the biggest supply chain challenges. Supply chain strategy involves a number of issues understanding inputs and outputsoutputs strategies for a dispersed network dealing wwith ith some trends in globalizationglobalization. Jul 20, 2016 a global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. So important developments to set the stage is critical. Supply chain management has never been more important to the success of companies. The 5 biggest supply chain challenges rbw logistics. In the instance of global supply chains, it is extended around the world any company that uses parts and services from another factory overseas faces issues with global supply chain. An optimized supply chain allows a company to quickly assess a suppliers ability to meet financial, legal, safety, quality, and environmental regulations and expectations.
It involves people, information, processes and resources involved in the production, handling and distribution of materials and finished products or providing a service to the customer. The impact of the new coronavirus epidemic on worldwide manufacturing operations will soar by midmarch. Companies have discovered that effective supply chain management cuts costs, reduces waste, prevents overproduction and helps ensure that customers are more satisfied with product, price and service. As environmental issues influence corporate policy to a greater extent.
Global supply chain law supply chain legal issues have become increasingly prominent as supply chains become longer, leaner, and more international. With a global view and a transparent supply base, international supply chain operators can identify reliable suppliers anywhere in the world. Similarly, just 37 percent of companies said big data analytics is embedded into key supply chain processes figure 4. Six major movements can be observed in the evolution of supply chain management studies. Kpmgs 2016 global manufacturing outlook report highlights that the best way manufacturers can reduce supply chain risk is by placing a greater emphasis on. Although written from a global perspective, the author tries to do justice in the examples. Leveraging the total companys purchases over many businesses can allow company management to select strategic global. Supply chain strategy involves a number of issues understanding inputs and outputsoutputs strategies for a dispersed network dealing wwith ith some trends in globalizationglobalization methods for extending benefits new trends and wwhat hat they implyimply. The framework identifies six business competencies that are necessary to operate a global supply chain. Build an adaptive and agile supply chain with rapid planning and integrated execution. Organizations must address a few key issues to excel in global supply chain sourcing.
758 765 683 1059 104 615 1637 164 1343 289 881 1371 616 133 413 467 1401 548 572 221 1386 95 1038 1549 800 1550 469 1004 333 716 848 548 902 470