Identifying Issues in Supply Chain Management in a Global Context

Identifying Issues in Supply Chain Management in a Global Context

Identifying Issues in Supply Chain Management in a Global Context

Coleman University

Gritdagorn Thaisumit

Abstract

Modern day businesses are increasingly involved in globalization and as such, global supply chain management is becoming an ever increasing issue. Multinational Companies invested in foreign countries face the same problems as local small businesses in that they both must obtain and hold distribution centers, have distribution strategy that will take only a reasonable amount of funds, keep an organized inventory of all products in each distribution center, and be able to keep track of the potential forecasts regarding newer products that may come in demand. But while local businesses may only deal with regional or national suppliers, multinational companies deal with suppliers on a worldwide scale. (Epiqtech.com, 2010)

Identifying Issues in Supply Chain Management in a Global Context

In today’s global market, the market power of the consumer is greater than ever before (Mentzer, 2006). This means that in order for companies to prosper, it is imperative that they keep their consumers completely satisfied with their products. Companies must do this by keeping the quality of their products or services high, while keeping their costs lower than their competitors. When it comes to global supply chain management, this is only possible through increased cooperation with foreign companies. It is impossible for one company to retain and keep track of all its distribution centers, logistical information, product forecasting etc. when that company is engaged in the global market. Foreign sources must be used in order to be successful (Mentzer, 2006).

Customer satisfaction is not only driven by the quality and cost of the products, but by the flexibility of the company to produce and stock variations of older products. (Mentzer, 2006). The more...