Premium Essay

Globalization of Supply Chain Management

In: Business and Management

Submitted By darrenbarrett
Words 1422
Pages 6
Conclusions

The globalization of supply chain management is the natural outcome of today’s expanding consumer markets as companies struggle to meet the dynamic needs of growing markets and new customer segments.

It has led to a high degree of specialization under an ever-expanding world market. People with special skills can work with little overheads and market globally. Small companies can flourish.
Introduction

The pace of globalization on the supply chain continues to foster opportunities, challenges and uncertainties for companies around the world. Almost every business is involved in one or more supply chains and Globalization now has an impact on every company, large and small.[1]

The purpose of this report is to:

1. Explain when Globalization started.
2. Assess the impact of globalization on supply chain management.
Definition

Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. [2]

History Of Globalization
When It Began

The term, globalization, was first used around 1960 to describe international capital flows. If the definition of globalization according to economists is correct, then the flow of people around the world is one element of globalization, so it is not a recent phenomenon. It can be argued that globalization has its origins in the 'out of Africa' migrations, commencing some 200,000 years ago. During the nineteenth and twentieth centuries war and colonization have been powerful globalizing agents. [3]...

Similar Documents

Premium Essay

Globalization of Supply Chain Management

...A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization in Supply Chain Management. 2.0 Definition of Globalization in Supply Chain Management Globalization in Supply Chain Management are worldwide networks of suppliers, manufactures, warehouses, distribution centers and retailers through which raw materials are acquired, transformed and delivered to end customers (OECD, Supply Chains and the OECD...

Words: 1574 - Pages: 7

Premium Essay

Sssss

...informs Vol. 36, No. 3, May–June 2006, pp. 191–193 issn 0092-2102 eissn 1526-551X 06 3603 0191 ® doi 10.1287/inte.1060.0214 © 2006 INFORMS Supply Chain Management: Technology, Globalization, and Policy at a Crossroads Tuck School of Business, Dartmouth College, Hanover, New Hampshire 03768, m.eric.johnson@dartmouth.edu M. Eric Johnson Supply chain management is an important application area for INFORMS, with many opportunities for our community to contribute models and insight. The seemingly relentless forces of globalization and technology continually present us with new supply chain challenges and opportunities for further progress. Over the past decade, researchers and practitioners have developed many models and methods that have influenced supply chain practices. However, as managers and management scientists have embraced these new approaches for improving supply chain competitiveness, these initiatives have slipped into the middle of many important corporate and public debates. Key words: supply chain management; professional: comments on. T he forces of globalization and technology are changing supply chains. In many cases, the supply chains are literally disintegrating. Product designers, marketers, and manufacturers that were previously housed in a single facility are now spread over several continents in organizations with different cultures, languages, and business objectives....

Words: 1497 - Pages: 6

Premium Essay

Globalization of the Supply Chain: the Benefits and Vulnerabilities

...Running head: GLOBALIZATION OF THE SUPPLY CHAIN Globalization of the supply chain: The benefits and vulnerabilities Table of Contents Abstract 3 Introduction 4 Bowersox Perspectives 4 Supporting Perspectives 6 Conclusion 8 References 9 Abstract This paper explores the viewpoints presented by various authors on the benefits and risks associated with globalization of the supply chain. Organizations generally enjoy the benefits of market growth and operating efficiencies as a result of engaging in global operations. The success of the organization will be predicated upon its ability to effectively mitigate the associated logistical challenges that are incumbent. Bowersox, Closs & Cooper (2010) suggests that more demanding logistics operating environments, security considerations and more complex total cost analyses are among the vulnerabilities of operating a global supply chain (GSC). This paper will examine in further detail the perspectives offered by Bowersox et al (2010) as supplemented by Helferich & Cook (2002), Gross (2010) and James (2010) which suggests that a single disruption event can have significant consequences on the global supply chain. In addition managerial implications for risk management strategies must be considered in order to preserve the supply chain....

Words: 1540 - Pages: 7

Premium Essay

Logistics-Chapter1Review

...Chapter 1—Supply Chain Management: An Overview TRUE/FALSE 1. The last decade of the twentieth century was a period of rapid change for organizations, especially businesses. ANS: T PTS: 1 REF: Page 6 2. A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system. ANS: T PTS: 1 REF: Page 6 3. Globalization has had little effect on consumers. ANS: F PTS: 1 REF: Page 7 4. Supply and demand has become less volatile as managers become more adept at controlling the elements. ANS: F PTS: 1 REF: Page 7 5. Outsourcing is a fairly new concept. ANS: F PTS: 1 REF: Page 8 6. SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S. ANS: T PTS: 1 REF: Page 9 7. The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily. ANS: F PTS: 1 REF: Page 9 8. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2. ANS: F PTS: 1 REF: Page 12 9. Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s. ANS: T PTS: 1 REF: Page 14 10. Supply chain managers no longer need to worry about suboptimization in light of today's technology....

Words: 1947 - Pages: 8

Premium Essay

Business Management 515 Dimco Supply Chain

...Sergil Houston Business Management 515 Week 3 Assignment 1 Professor Wade Ferguson July 17, 2011 Discuss the current supply chain system at DIMCO. Dimco uses an strategic, operational and tactical supply chain in which they have daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. They have sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Strategic network optimization, including the number, location, and size of warehousing, distribution centers, and facilities. Strategic partnerships with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities. Their tactical systems includes sourcing contracts and other purchasing decisions....

Words: 814 - Pages: 4

Premium Essay

Toyota

...Supply Chain Management Toyota’s Supply chain management is a perfect combination of Porter’s value chain strategy, Kierestsu strategy, and Eliyahu Goldratt’s theory of constraints. Supply chain involves all activities associated with the transformation of raw materials into finished products and flow of products to the consumers as well as the flow of information. Toyota modernized its supply chain management by using information management systems in the 1980’s; suppliers, dealers, body makers, and customers were all linked to the Toyota Network System (TNS). The overall goal of supply chains is to keep all the major components connected. For...

Words: 954 - Pages: 4

Free Essay

Global Expansion Strategies of Two Korean Carmakers- Case Analysis

...Hyundai's globalization strategy, exporting supported by technological advancement, was driven by an implicit assumption of its competitive advantage vis-à-vis Daewoo's” (Kim, Bowon. Supply Chain...

Words: 986 - Pages: 4

Premium Essay

Supply Chain Visibility

...What Practical Steps Should be taken to increase “visibility” in the supply chain of your business? What would the potential benefits be and would they outweigh the risks involved? Introduction There exists a distinct difference between an international and a global firm. Whilst the latter “crosses international boundaries in terms of manufacturing, inventory and distribution”, a global company is “characterized by global sourcing and production, along with centralized inventories information”. [ (uol.ohecampus) ] Globalization has introduced complexities in the supply chain and logistics management. According to Rushton et al, complexities provide some significant implications for logistics operations. These include; extended supply lead times, production postponement with local added value, complicated node management, multiple freight transport options, extended and unreliable transit times, and the need for greater visibility in the supply chain. [ (Rushton, Croucher, & Baker, 2011) ] “Supply chain visibility (SCV) is the ability of parts, components or products in transit to be tracked from the manufacturer to their final destination. The goal of SCV is to improve and strengthen the supply chain by making data readily available to all stakeholders, including the customer”....

Words: 692 - Pages: 3

Premium Essay

Distribution

...The performance of supply management departments and supply management professionals is commonly measured in terms of amount of money saved for the organization 5. Flow production involves a continuous movement of items through the production process. This means that when one task is finished the next task must start immediately.  Therefore, the time taken on each task must be the same.  * involves the use of production lines such...

Words: 2103 - Pages: 9

Premium Essay

Management

...Critiquing the Affects of Globalization, Diversity, and Intuition on Managerial Roles Managerial roles are increasingly more challenging to fulfill with employees, projects and industries spanning across countries and boundaries. With globalization, there are business process differences to overcome, diversity with respect to organizational culture to consider, and the intuitive element is approached from gender perspective as well as its relevancy in shaping managers’ cognitive style. Global change is altering the supply chain management structure and efficiency for U. S. multinational corporations. Johnson (2006) points to five areas of importance regarding supply chain management structures: Globalization and outsourcing, including the impact of China and India on supply chain structure and coordination; new information technologies, such as radio frequency identification (RFID) and tools that enable enterprise integration and collaboration; economic forces within and between supply chains, from the consumer pricing to supplier contract negotiation; risk management, including risks from supply chain complexity and from security threats; product lifecycle management, including post-sale service and product recovery (p.191-192). Even though these areas are important, Johnson (2006) underemphasized the importance and affects of cultural values and managerial philosophies on supply chain management organizations (Robbins & Judge, 2007)....

Words: 1649 - Pages: 7

Premium Essay

Chek Lap Kok

....: Supply Chain Risk Management 1 María Jesús Sáenz† and Elena Revilla‡ “In an increasingly networked world, supply chain risk management is top of mind in global organizations as well as key differentiator for leading value chain organizations.” —John Chambers, Chairman and CEO, Cisco Systems James Steele, program director for supply chain risk management at...

Words: 4942 - Pages: 20

Premium Essay

Supply Chain Integration

...Proceedings of the International MultiConference of Engineers and Computer Scientists 2010 Vol I, IMECS 2010, March 17 - 19, 2010, Hong Kong Supply Chain Integration: Definition and Challenges Hussain A.H Awad, Mohammad Othman Nassar Abstract—Ever Since the Council of Supply Chain Management Professionals (CSCMP) Defined Supply Chain Management and the Council of Logistics Management (CLM) adopted the definition of logistics in 1984, the integration of a supply chain processes or activities became obligatory definition. Many firms have extended their chain from upstream and downstream to include other vendors, agents of vendor, and customers. These firms have successfully implemented the concept of supply chain integration with spectacular results after they recognize and manage the integration challenges of supply chain. This research is a humble scientific attempt to shed more on the challenges and the obstacles that those companies faced during their success journey stand behind finding integration in their supply chain. By reviewing the available literature about the supply chain integration challenges we didn’t find a single source able to present all these challenges that may face the organization during its implementation of supply chain integration. The main contributions for this paper are integrating all the of supply chain integration challenges in one source....

Words: 4240 - Pages: 17

Premium Essay

Pre Assignment

...It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007) Logistics can be divided into two parts: domestic logistics and international logistics. Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors : 1) Logistic costs is International Business is much more higher than the domestic business 2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics 3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d) Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001) There are some roles of global logistics: • Globalization helped in doing business beyond the national boundaries. • Internet has made easier to do business across the globe. • Cargo movements need to be done physically, using available means of transport....

Words: 965 - Pages: 4

Premium Essay

Ann Taylor International Management Analysis

...The need for strategic management is heightened by brutal competition, pressure on price due to globalization, and the recent economic recession. For Ann Taylor, an agile supply chain strategy coupled with total quality management will reduce costs. In an inefficient archaic system, fashion apparel can become obsolete even before it reaches the marketplace. Outsourcing production to China has helped propel...

Words: 4213 - Pages: 17

Premium Essay

Supply Chain Risk

...Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232) by Chuck Munson. Cisco Systems, Inc.: Supply Chain Risk Management 1 María Jesús Sáenz† and Elena Revilla‡ “In an increasingly networked world, supply chain risk management is top of mind in global organizations as well as key differentiator for leading value chain organizations.” —John Chambers, Chairman and CEO, Cisco Systems James Steele, program director for supply chain risk...

Words: 4942 - Pages: 20