Global supply chain issues, Operation Management

Global Supply Chain Issues 

Global supply chains bring problems of their own. As companies begin to apply organisational efficiencies achieved in their home markets to overseas markets, they encounter difficulties. Here are a few issues to consider:

  • Dealing with global trade agreements (World Trade Organisation)
  • Computer hardware interfaces and data communications
  • Transfer of capital along the supply chain
  • Gathering accurate financial data
  • Legal trade restrictions which vary from country to country
  • Need for flexibility in supply and inventory levels to accommodate variability of distribution efficiency
  • Need for specialist staff to move along the supply chain to ensure difficulties of handling duties; freight; customs; legal requirements are managed
  • If companies operate with global markets and global supplies, there is a need to have a centralised procurement function that operates strategically (strategic procurement). Only centralised decision making can cope with complex data handling and the decisions necessary to optimise overall supply chain performance
  • Markets for electronic products like PC's, mobile phones and games have shown not only significant reductions in product value (falls of 25 per cent in a single quarter have been common) but variability of demand
  • Variability of demand has shown to be difficult for extended or multi-echelon supply chains to manage.

 

Supply chain versus supply chain 

'The battle taking place in today's market is no longer company against company,' says Lou Unkeles, senior director of applications marketing at Oracle. 'What we're seeing now is supply chain competing against supply chain.'

Posted Date: 3/15/2013 1:39:27 AM | Location : United States







Related Discussions:- Global supply chain issues, Assignment Help, Ask Question on Global supply chain issues, Get Answer, Expert's Help, Global supply chain issues Discussions

Write discussion on Global supply chain issues
Your posts are moderated
Related Questions
How can you use Systems Thinking to simplify your daily life? Or is System Thinking just a "corporate" way of defining and justifying common sense?


Is the 'focused factory' concept described by Skinner applicable in the service sector? Answer:  Yes, think of Schmenner's service-process matrix and the lower quadrant entitled

What do you see as the main organizational problems that are likely to be associated with implementation of a transnational strategy? Explain

1 In Johnson v. Transportation Agency, Santa Clara County, a female employee was promoted to the position of road dispatcher, despite the fact that a male candidate had scored two

Least Cost Methods ( LCM): The NW corner rule describe earlier consider only the availability and supply requirements in making assignments'. It take no according of the shipping

Kentwood Electronics manufactures three components for stereo systems: CD players, tape decks, and stereo tuners. The wholesale price and manufacturing cost of each item are: Compo

Given the following information: sales:48,000,000 CGS:24,000,000 Variable expense:8,000,000 fixed expenses:8,000,000 inventory:6,000,000 account receivable: 3,000