Risks and challenges faced in managing global supply chains
There are numerous benefits of having global supply chains. Sourcing materials from various countries offer the company the chance to pay competitive rates for similar services, which results in low-cost manufacturing. Global supply chains are marked with great levels of complexity because they involve more partners across several territories ( Balambo & Haouari, 2014 ). However, these global supply chains also come with their risks and challenges that managers may need to be wary of. First, managers must be cautious of quality levels and defects. The manufacturing process is often long, and although products may not be perfect, there is a certain standard maintained for goods ( Patil, 2015 ). International manufacturers may refuse to meet these standards, and disputes may arise on which party must be liable for the defects. The firm will be affected by political and government changes ( Balambo & Haouari, 2014 ). Changing political affiliations and governing parties may result in political instability in the global supply chain capacity.
With international global chains comes the issue of cultural differences and language barriers. Cultural differences may influence how business is conducted, thus affecting the delivery of quality products ( Balambo & Haouari, 2014 ). The issue of language barrier may be seen when global partners conduct their business in a different language. Communicating with them may be a challenge, and errors are bound to occur if the instructions are not interpreted correctly ( Balambo & Haouari, 2014 ). Other challenges include adhering to the different legal systems of countries where the company sources its materials and conducts manufacturing. Global supply chains are also faced with the issue of economic instability ( Patil, 2015 ). If the company buys products from countries where there is economic instability, the firm will likely suffer a loss. This will be attributed to the decreased global supply chain capacity that will affect the firm's productivity.
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Ways in which Clif Bar & Company has a sustainable supply chain
Companies that are said to be sustainable are those that can meet their current needs without jeopardizing future generations' needs. For firms to be sustainable, they must watch out for environmental, financial, and social responsibility ( Pereseina et al., 2014 ). Clif Bar has a sustainable supply chain as it uses organic products when manufacturing its products. This ensures that they maintain ethical and moral responsibility as they offer their clients organic food that is environmentally friendly (Sakyi, 2019). Clif Bar company also has a sustainable relationship with its suppliers. The company has a value system known as the five aspirations that ensure all the company's employees and business partners work towards realizing a sustainable community, business, brands, and the planet (Sakyi, 2019).
Issues or risks to sustainability Clif Bar & Company will encounter when they choose to expand to international markets
If the company decides to expand to international markets, they may face issues of changing consumer tastes. The firm will have to gauge which tastes will be welcomed outside the US to ensure that they manage their productivity. They will face a problem when sourcing products to use in manufacturing (Sakyi, 2019). This is because they use organic products that are not laden with herbicides and pesticides. From the case study, it is said that there is a limited market for such products, although it is growing. This means that they will either have to pay higher prices or suffer from limited access of such ingredients to make their Clif Bar. Moreover, the firm will face having ingredients with short shelf lives, and life cycles as chemicals do not preserve them (Sakyi, 2019). They will have to find innovative ways to preserve their products to ensure they maintain their ethical stance.
References
Balambo, M. A., & Haouari, M. (2014). Global Supply Chains and Risk Management: A Necessary Approximation. Singaporean Journal of Business, Economics and Management Studies , 51 (1515), 1-10. https://www.researchgate.net/publication/284847462_Global_Supply_Chains_and_Risk_Management_A_Necessary_Approximation
Patil, M. (2015). Challenges for supply chain management in today’s global competitive environment. Journal of Business and Management , 7 (10).
Pereseina, V., Jensen, L. M., Hertz, S., & Cui, L. (2014, January). Challenges and conflicts in sustainable supply chain management: Evidence from the heavy vehicle industry. In Supply Chain Forum: An International Journal (Vol. 15, No. 1, pp. 22-32). Taylor & Francis. https://www.diva-portal.org/smash/get/diva2:690851/FULLTEXT01.pdf
Sakyi, K. A. (2019). Sustainable Supply Chain Management at Clif Bar. Advances in Social Sciences Research Journal, 6(7), 622-626. https://journals.scholarpublishing.org/index.php/ASSRJ/article/download/6862/4364/
