In recent decades the world has become much, much smaller than it used to be. The internet and significant improvements to transportation infrastructures has turned the world into one globalized international trade market. This global market offers businesses opportunities to reach new customers and secure a diverse selection of new workers, materials, and products. Though the opportunities associated with globalization are numerous, the risks it poses to your supply
chain may be bigger than you expect. In this article you’ll learn how globalization impacts supply chain management and how you can insulate your supply chain from the worst of its effects. The term “globalization” refers to the free movement of goods, services, and people across the world. In regards to supply chain management, globalization refers to the process in which a business operates on an international scale. Globalization trade offers companies the opportunity to reach new customers in new markets, which dramatically upsets how manufacturers need to operate to be successful. Exposure to new markets means exposure to greater competition and greater risk – but also greater reward. Pros and Cons of Global Supply ChainIf you’re a logistics manager or business owner, you may be wondering whether the impacts globalization has on your supply chain will be beneficial or simply make it harder for you to operate. The truth is that there are pros and cons to globalization and it may, or may significantly affect your supply chain. It all depends on the nature of your business and how you manage your supply chain. 5 Benefits of a Globalized Supply ChainThe onset of globalization means supply chain management is more complex and business critical than ever before. As supply chain managers or business owners, logistics optimization falls on you, and it is your responsibility to know how globalization can benefit your operation.
5 Negatives of a Globalized Supply ChainThe benefits of a globalized supply chain are numerous but it also presents a new set of challenges to your network and managing your supply chain. To take advantage of the benefits of globalization, you need to know the negatives and how to respond to them.
How Will Globalization Affect Your Supply Chain?Globalization is, for better or worse, a good thing for your supply chain, your business and the world at large. It’s true, globalization poses substantial risk to your business but only if you do not take steps to insulate your supply chain from the worst of its effects. Because the benefits that globalization will bring to your business far outweigh the risk. Flowspace is the answer to your supply chain needs to gain a competitive advantage in the marketplace. As the premium on-demand warehousing and fulfillment service in the country, we offer month-to-month storage space, cold storage, pick and pack, and a free management system and zero long-term commitments. Contact us today. Written By:Allison ChampionAllison Champion leads marketing communication at Flowspace, where she works to develop content that addresses the unique challenges facing modern brands in omnichannel eCommerce. She has more than a decade of experience in content development and marketing. What is a global supply chain strategy?Global supply chain management generally refers to all processes regarding a product's lifecycle, from the concept of its creation to distribution to endpoints. Global SCM is aimed to enhance the productivity of each stage of this lifecycle, get rid of inefficiencies, and deliver the products timely and seamlessly.
What is a supply chain quizlet?Supply Chain. Network of manufacturers and service providers that work together to convert goods from raw material to end user. Linked through physical flows, information flows, and monetary flows.
What is the most significant factor in supply chain design?Three main key factors which drive the supply chain design of any company are: influencers, design considerations and building blocks.
Which of the following describes the ultimate objective of supply chain management?The ultimate goal of effective supply chain management is higher profits through improved customer satisfaction and a lower cost of doing business. Profits are healthier when costs are controlled and reduced wherever possible. Operating costs go down when raw materials and production costs go down.
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