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. 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. Global supply chains a global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas. The amazon effect is causing a revolution in thinking across the supply chain. 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. 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. Material issues supply chain honda sustainability report 2018 96 overview of 2 top message 4 honda honda contents 3 philosophy 5 strategy editorial 1 policy performance 7 report assurance gri content index financial data 6 governance 8. Supply chain management in the global context econstor. 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.
We recommend the definition of supply chain management developed and used by the global supply chain forum. At best, supply chain strategy can be the enabler of the business strategy. National strategy for global supply chain security. Dells supply chain transformation gattorna alignment. It provides realtime visibility to all the key dimensions for successdemand, supply, product, risk, and performanceacross the organization and throughout the extended supply chain. During the phase of design of a supply chain network, a company. Global supply chain risk management strategies citeseerx. 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. However, marketing strategy is problematic in global supply chains. Major issues facing supply chain managers and how to. Global supply chain management also faces the challenge of variations in customer demand that occur seasonally and over longer time periods. Pdf global supplychain strategy and global competitiveness. 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. 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.
Its a wakeup call for supply chain professionals to design new and improved processes and think creatively about the future. As a result, supply chain executives face unprecedented challenges. One of the most popular articles we ever wrote discussed the five biggest supply chain challenges, as we saw them back in 2012. 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. 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. Push strategies classical manufacturing supply chain strategy. International supply chain managementi international supply chain management is the same as domestic supply chain management spread over a larger geographic area. This means it is an essential tool for competitiveness in a global marketplace. Here we discuss five of the biggest supply chain challenges. International supply chains range from a primarily domestic business with some international suppliers to a truly integrated global supply chain.
A global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from overseas. Coates is the executive director of the reshoring institute and the president of blue silk consulting, a global. Pdf efficient supply chain management is crucial for survival and success in a turbulent. 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. According to many chief procurement officers, selecting a strategic supplier that provides manufacturing locations with consistent global. We wrote the article back in 2012, honestly, many of those same challenges are still major concerns to the supply chain now. 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 has never been more important to the success of companies.
Global supplychain strategy and global competitiveness. Issues in an increasingly complex environment find, read and cite all the research you need on researchgate. The 5 biggest supply chain challenges rbw logistics. 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. Here are some of the bigger issues that affect supply chain. But it is possible to boost performance while making supply chains more resilient. Cost, quality, and delivery typically dominate supplier relationship deliberations. However, people involved in the supply chain will not use technology unless they find it easy to adopt. The current issue and full text archive of this journal is available at. 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. An agile demanddriven supply chain requires endtoend visibility across the business from buyers and the market to supply.
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. Decamposb amichigan state university, department of supply chain management, the eli broad graduate school of management, east. 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. In an analysis of the top 25 supply chain of 2016, it was listed by analysist firm gartner as number 4. 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. Careful selection and implementation of the supply chain technologies a company uses is essential for supply chain success. Global supply chain law supply chain legal issues have become increasingly prominent as supply chains become longer, leaner, and more international. Problems addressed supply chain management must address the following problems. Supply chain management has assumed a significant role in firms performance and has attracted serious research attention over the last few years. The 5 biggest supply chain challenges and how to overcome them. 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. The amazon effect and the global supply chain supply.
One of the most popular articles we ever wrote discussed the five biggest supply chain challenges, as we see them from our perspective. And just like when developing a business strategy, look to your core. As part of that we created a dedicated global supply chain strategy. Offshoring strategy by french firms, leverhulme centre for research on globalisation. However, despite erp systems being a standard backbone of companies for two decades, many still struggle to gain visibility. Five challenges facing the modern supply chain every angle. As environmental issues influence corporate policy to a greater extent. Build an adaptive and agile supply chain with rapid planning and integrated execution. The triple bottom line of people, profit, and planet has never been more important than it is. How coronavirus could impact the global supply chain by midmarch. So important developments to set the stage is critical. 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.
Supply chain management aims to manage the flow of goods, information and finances among these business networks in the most efficient manner. Global supply chain sourcing strategy american express. Similarly, just 37 percent of companies said big data analytics is embedded into key supply chain processes figure 4. Pdf in order to be competitive in the world market, many exporting companies have to meet the challenges and demands posed by the. However, firms may adopt broader logistic objectives than just ensuring the supply of materials for manufacturing. Design of a global supply chain issues and concerns raj v. 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. Six major movements can be observed in the evolution of supply chain management studies. Managing the production and transportation of goods over large distances to meet the peak period of demand can be very difficult. In a supply chain network, facilities are the primary components. The framework identifies six business competencies that are necessary to operate a global supply chain.
Supply chain management is the integration of key business processes from end user through. Solving challenges in global supply chain management. Partly thats because that stuff is hard to control. 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. Many of the executives expressed broad concerns regarding supply chain risks. 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.
Pdf product safety and security in the global supply. This framework complements previous classifications by adding barriers and challenges in all stages of the supply chain. Trade and economic policies for developing countries by alessandro nicita victor ognivtsev miho shirotori unctad, geneva united nations new york and geneva, 20. Global supply chain forum supply chain management is the integration of key business processes across the. 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. Although the global supply chain is longer and more complex, it would be wrong to assume that the domestic supply chain. Supply chain strategy is not simply a linear derivative of the business strategy. Kpmgs 2016 global manufacturing outlook report highlights that the best way manufacturers can reduce supply chain risk is by placing a greater emphasis on. Protecting intellectual property rights challenges. Global practices and lessons learned for latin america and the caribbean 5.
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. A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. 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. With supply chain being at the core of business operations, these issues can directly affect the company in substantial ways. 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. Global supply chain law blog squire patton boggs law firm. An optimized supply chain allows a company to quickly assess a suppliers ability to meet financial, legal, safety, quality, and environmental regulations and expectations. The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain. Although written from a global perspective, the author tries to do justice in the examples.
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. 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. Leveraging the total companys purchases over many businesses can allow company management to select strategic global. 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. 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.
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. In a supply chain network, facilities are the primary components where a product is manufactured or stored. Here are five such adjustments we would suggest in 2020. Intel corporation has one of the most resilient and robust supply chains in the world. With the globalization of manufacturing operations, having a global procurement network that can support and react to your supply chain needs is important. Our blog discusses legal issues that arise in the supply chain, both those that cut across industries and those that are industry specific. What are the biggest challenges of managing global supply. Ihrm and challenges in scml for global organizations. Although risk management in multinational enterprises has been. Product safety and security in the global supply chain. Essentially, global supply chainmanagement is the same as supplychain management. Even big international companies must strive in order to remain competitive and not lose. Challenges in global supply chain management third party.
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. 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. 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. If the business strategy is to be the low cost provider, the supply chain strategy should support this. Aligning overall organizational strategy with supply strategy. The same percentage reported using big data analytics in all areas of the supply chain, but only on an ad hoc. Understanding your value chain, and how china fits into it, can. Supply chain strategy involves a number of issues understanding inputs and outputsoutputs strategies for a dispersed network dealing wwith ith some trends in globalizationglobalization. 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. Requirements for global strategy implementationi no company is immediately ready for integrated global supply chain management on this scale. 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. 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. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network. Organizations must address a few key issues to excel in global supply chain sourcing.
According to pwc, bestinclass companies in global supply chain management achieve 20 percent higher profitability than others. It involves people, information, processes and resources. Policy issues in international trade and commodities study series no. Integration, incentives and innovation nikes strategy to. Barbara leads the logistics and distribution service offering, which includes a focus on global. Risk is a fact of life for the supply chain professional due to the long list of forces that drive supply chain. 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. But fortunately, a few adjustments to supply chain strategy can go a long way. Supply chain managers have seen increasing challenges to create, and keep, efficient and effective supply chain methods. 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. Apics invited more than 9,000 professionals to participate in a survey, which took place from june through july 2011.
Keywords strategy, supply chain, international hrm, upper echelons theory. Three strategies to safeguard your global supply chain. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations. 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.