Globalization has made a lot of things possible. Key to this is the carrying out of international business which results in the expansion of operations and consequently the growth of the firm. Global supply chain management deals with all factors pertinent to the supply chain but at an international level. Supply chain management includes a range of activities such as planning, executing, controlling, products flow from the acquisition of raw materials to their production and distribution to the customer in a manner that is most cost-effective.
Optimization of the supply chain is aimed at creating and fostering optimal logistics and operation networks that are cost effective. When supply chains are optimized, the cost is reduced hence output is maximized under the given constraints. An optimized supply chain often results in prompt and scheduled production of goods which increases customer loyalty and consequently allows for expansion of the business. Such operations are usually reliable, and there is effective communication between everyone along the supply chain, thus in case of any issue, it can be resolved as soon as possible.
Delegate your assignment to our experts and they will do the rest.
With the dynamic nature of international business, there has been the need to improve the supply chains. Some factors affect global optimization of operations in a firm such as legal and political factors that include trade wars between nations, and failure to adhere to regulations. There are also social, environmental, and economic factors that may hinder the optimization of global operations such as inflation rates thus end up making corporations inefficient.
With the dynamic and complex structure of the international business, what are the key points to consider when avoiding challenges in the management of global supply chains?
