Global Supply Chains
Introduction
The concept of global supply chain is important in understanding the diverse dimension of business globally. This analysis will focus on the wider market to be served, the products that will be dealt with by the firms, underlying process in regard to demand, macroeconomic conditions relating to the future, the overall transport and the production overheads (Ritchie & Zsidisin 2008). In regard to the above, any company involved in the chain has to make amicable decisions in regard to location of operations, how to distribute production work to the entire network and the entire management of products to be distributed. In this context, it is important to understand some two terms i.e. Product focus, Process focus and Market focus. Product focus is a term detailing how different companies located in different parts of the world concentrate in handling specific product family (Tayur, Ganeshan & Magazine 2009).
The focus is normally to reach the specific product to different destinations of the world. Process focus relates to how various firms incorporate abundant processes geared at manufacturing different products. In this case the plant which is manufacturing the specific commodity has to be one out of many in the process chain. Market focus means that the firms are dedicated in serving a specific market segment. In this regard, the market is insulated from external aggression.
Global commodity chains (GCC) – this relates to the labor and the production processes enshrined in a network resulting to a finished product. In order to understand this concept it is of paramount important to understand the network involved. Global Production Network works in cahoots with the GCC. Research has it that Global Production Network was characterized in the early 1980s leading the development of the GCC. Globalization results to the integration of markets. It makes the entire world produce globally. This has made it paramount for the firms to make proper decisions in regard to the make and buy in sourcing and outsourcing (Bowersox, Closs & Cooper 2002).
Global production networks – the concept examines the interconnected hub of activities and functions resulting to worldwide production and distribution of products. It entails the resultant complicated nature of firms that are geographically dispersed. The production network not collapses the ‘glue’ that used to bring firm together in the traditional concept but bring about mutual integration of national economies. This mutual integration has a positive impact in the economies concerned (Cohen & Mallik 2007). The complex nature of the network is depicted by the fact that the production processes and networks are not territorial specific or bound. Rather the networks cut through territories and are not state or nation bound. Even though the networks are affected by the rampant regulation barriers and social and cultural factors, they tend to create structures which disregard territorial nature.
The Critical Concept – focuses on the management of the purchase, sell and deliver of transactions in a collaborative unit or channel. It does a comparative analysis of the single channel and the national model depicting it complex nature. The concept scales to analysis of the processes in a global perspective where plethoras of complexities are brought into the limelight. This concept shows the integration and interconnection of different vendors across the globe who work as business partners (Locke, Amengual & Mangla 2009). The partners are focused in achieving a specific objective before the tasks are passed on to the next level of the chain. As the tasks are expounded the supply chain becomes more complex resulting to an influx in the margin of error. This concept not only analyzes the problems arising but also outlays some possible solutions to the problem (Andersen & Larsen 2009). For instance, in their bid to simplify the complexity and minimize risks, the companies involved should ensure that the most important information about the supply chain is passed from top to the bottom. In this regard, many firms propose visibility services in the supply chain such as ‘track and trace’ but in depth analysis should be done geared at finding more approaches in tackling the challenge. For instance, questions emanates from different quarters of the chain querying on the value of event or awareness or even failure and challenges in the supply chain if such event failure or the problem occurs.
Conclusion
Despite the similarities existing between the supply chain management and logistics concept, a major difference emanates between the concept of the supply chain and the ancient logistic management. Logistics normally talks about the activities happening within a single platform while the supply chain management is more or less of different companies working together with a single aim of delivering a product to the market (Bowersox, Closs & Cooper, 2002). Logistics involves itself with issues concerning procurement, stock management, maintenance, and distribution. The concept of the supply chain management embraces all the logistic features and contains more activities relating to marketing, finance, production of new product and improvement of customer service. In a wider view, the additional activities are bound to fulfil the customer’s requests and demand in the market (Boyd, Spekman, Kamauff & Werhane 2007). The entire approaches of the supply chain provide a platform in which to deal with customers needs that would eventually conflict with one another.
References
Cohen, M. A., & Mallik, S. (2007). Global supply chains: research and applications. Production and Operations Management.
Andersen, M., & Skjoett-Larsen, T. (2009). Corporate social responsibility in global supply chains. Supply Chain Management: An International Journal.
Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management (Vol. 2). New York: McGraw-Hill.
Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2009). Quantitative models for supply chain management. Springer.
Locke, R., Amengual, M., & Mangla, A. (2009). Virtue out of necessity? Compliance, commitment, and the improvement of labor conditions in global supply chains. Politics & Society,
Boyd, D. E., Spekman, R. E., Kamauff, J. W., & Werhane, P. (2007). Corporate social responsibility in global supply chains: a procedural justice perspective. Long Range Planning.
Ritchie, R., & Zsidisin, G. (2008). Supply chain risk: a handbook of assessment, management, and performance, Springer.
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