4 Jun 2022

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Limitations Suppliers Face in Global Operational Management

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Academic level: College

Paper type: Essay (Any Type)

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Pages: 1

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Manufacturers acquire raw materials from different suppliers across the world. The need to have the best quality and low-cost raw materials makes those manufacturers contact suppliers from different countries. However, there are some limitations those suppliers face in the operational management and thus hindering raw material deliveries to manufacturers across the world. First, suppliers may encounter currency fluctuations when delivering raw materials to manufacturers in different countries. Since countries use different currencies as means of transaction, suppliers are forced to accept payment in foreign denominations before converting them (Jones, 2020) . However, the change in the value of those currencies might make suppliers incur high costs in delivering raw materials to manufacturers. They may also not know the price which caters to those fluctuations. 

Secondly, suppliers may have a problem in identifying a reliable market and business partners. The global supply chains keep changing with manufacturers identifying various sources to get high-quality and cheap raw materials. Therefore, suppliers in different parts of the world may fail to establish a reliable supply chain (Marques et al., 2019) . They may also fail to project future patterns due to the unpredictability of the global market. The third limitation suppliers face while undertaking operational management is compliance with standards and regulations in different countries and regions. Different countries have various regulations which control imports and exports. Therefore, a supplier must fulfil those requirements before delivering commodities to producers in different parts of the world (Fleury et al., 2016) . However, there are some instances where those regulations become unbearable for the supplier to follow. Such regulations may include setting a very high standard in quality requirements, long procedures in filing import or export duties, and increased tariffs. Lastly, suppliers may encounter difficulty in accessing insurance and finances for their deliveries. 

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References 

Fleury et al., (2016). Developing Mid-Tier Supply Chains (France) and Values-Based Food Supply Chains (USA): A Comparison of Motivations, Achievements, Barriers and Limitations. Agriculture , 6 (3), 36. https://doi.org/10.3390/agriculture6030036 

Jones, D. (2020). AUTOMATION IN LONG-HAUL TRUCKING- CURRENT STATE OVERVIEW, LIMITATIONS AND DISRUPTIVE EFFECTS. International Supply Chain Technology Journal , 06 (0 3). https://doi.org/10.20545/isctj.v06.i03.03 

Marques, L., Yan, T., & Matthews, L. (2019). Knowledge Diffusion in a Global Supply Network: A Network of Practice View. Journal Of Supply Chain Management , 56 (1), 33-53. https://doi.org/10.1111/jscm.12214 

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StudyBounty. (2023, September 14). Limitations Suppliers Face in Global Operational Management.
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