With the decrease in the trade barriers and increase in the technology, companies are operating in one country and expanding their operations globally. With this the competition is increased in the global markets. The two strategies implemented by the firms to remain competitive in the global market are seeking supplies and productions on a global scale, and reducing value added operations in house via outsourcing and strategic alliances.
With the use of the international supply chains the companies can have the advantages of low wages, for example in India, abundant labor is available and they work for low wages, with global supply chains a company can get raw material at cheaper rates, and they can also have benefit of proximity to markets. The global distributed system also gives firms the flexibility to react to the increased volatility in technology and marketplace. The global supply chain market network consists of export management companies, export packers, customs brokers, freight forwarders who help the businesses to export their products to the international markets.
The global supply chain involves many countries and also creates many difficulties for the companies. The main issues effecting the global supply chain processes are the costs of space, tariffs, and other expenses related to doing business overseas, exchange rate and market risks. Time is another big issue that should be addressed when dealing with global supply chain management.
The selection of the vendors or suppliers, decisions about the outsourcing planning are also issues associated with the global supply chain management.
As the global supply chain becomes more complex with every passing year, companies to be successful must adapt to the changing trends and incorporate them into their supply chain strategies.
With the use of the international supply chains the companies can have the advantages of low wages, for example in India, abundant labor is available and they work for low wages, with global supply chains a company can get raw material at cheaper rates, and they can also have benefit of proximity to markets. The global distributed system also gives firms the flexibility to react to the increased volatility in technology and marketplace. The global supply chain market network consists of export management companies, export packers, customs brokers, freight forwarders who help the businesses to export their products to the international markets.
The global supply chain involves many countries and also creates many difficulties for the companies. The main issues effecting the global supply chain processes are the costs of space, tariffs, and other expenses related to doing business overseas, exchange rate and market risks. Time is another big issue that should be addressed when dealing with global supply chain management.
The selection of the vendors or suppliers, decisions about the outsourcing planning are also issues associated with the global supply chain management.
As the global supply chain becomes more complex with every passing year, companies to be successful must adapt to the changing trends and incorporate them into their supply chain strategies.
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2 comments:
I wish I had the ability to write as well as you do! Supply Chain Management Systems
Planning is very important in every field of life, and same is the case with freight forwarding.
Best Logistics Company in India|International Freight Forwarder
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