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Globalization of Supply Chain Management

In: Business and Management

Submitted By darrenbarrett
Words 1422
Pages 6

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.

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.

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]...

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