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International Logistics

In: Business and Management

Submitted By deepadv89
Words 1030
Pages 5
In his book, The World Is Flat, Thomas Friedman, discusses 10 major forces that have helped to “flatten” the world from an economic perspective. One of the 10 forces is what he describes as supply chaining, a method of collaborating among businesses to manage the flow of goods, information, and cash to deliver “value” for the consumer. This type of collaboration has stretched vertically and horizontally on a global basis to become a cornerstone of competitive strategy for successful organizations in today's global marketplace. The whole planet is a single production field with the standardized operating rules. Factually, this is the fundamental meaning of the “flat world” concept, offset by information technologies. Flat world indicates that technology has allowed individuals and smallgroup of people to connect to the world’s ‘knowledge pools’ to create an unbelievable set of opportunities for collaboration in supply chains. It provoked oppurtunities to less developed countried by technology. Collaboration oppurtunities with individuals and companies throughout the globe have increased. This factor also increase the need for efficiencies and effective supply chain.

Supply chaining is connected as a motivation for firms to outsource their manpower, therefore creating a business globally. Among the 10 factors Friedman presents supply-chaining, a system of working together horizontally among retailers, suppliers, and customers to create value. Important human resources in creating a product such as manufacturers, marketers, and designers used to work at a single facility; but under supply chaining, they spread all around the world in institutes with different languages, cultures and business goal. In recent years, many manufacturing and retail firms have been relocating their sourcing strategies to the East. The reason in the globalization of...

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