Challenges of Global Supply Chain Management
CHALLENGES OF GLOBAL SUPPLY CHAIN MANAGEMENT
Introduction
Rapid growth of globalisation has enabled the developed countries to gather the motivation for making investment in developing countries. The developed countries nowadays are investing in different sectors of developing countries. Acknowledging the increasing rate of investment of the developed, the entrepreneurs of the developing countries are setting up the necessary infrastructure and facilities to produce low-cost goods for retail and consumption in the developed countries which are usually European countries and North America. Along with the rise of such trend a new concern has emerged within the core of globalisation and that is regarding the ethically responsive initiatives within the global supply network. This concern has emerged because the usual scenario observed is that, the ones with the power to influence takes advantage or exploits the ones who are weak in power or are highly dependant. In the case of global supply chain management, the companies of well known brands tend to have large number of small suppliers from different developing countries to work for them; naturally the suppliers are in a position where they are facing immense competition in order to be a part of the supply chain of these powerful corporations for which they strive to offer the lowest possible price sacrificing minimum working standards. For this very reason the big time corporations are facing criticisms from the media, consumers and pressure groups for taking advantage of the various initiations the suppliers take in order to save up on cost of production and thus provide low-cost goods and those initiations are executed in the form of poor wage payments, poor working conditions, poor environmental protection and poor health and safety standards in the supply chain.
It has become highly vital to discuss regarding this whole issue of the challenges being faced in global supply chain management. Along
Introduction
Rapid growth of globalisation has enabled the developed countries to gather the motivation for making investment in developing countries. The developed countries nowadays are investing in different sectors of developing countries. Acknowledging the increasing rate of investment of the developed, the entrepreneurs of the developing countries are setting up the necessary infrastructure and facilities to produce low-cost goods for retail and consumption in the developed countries which are usually European countries and North America. Along with the rise of such trend a new concern has emerged within the core of globalisation and that is regarding the ethically responsive initiatives within the global supply network. This concern has emerged because the usual scenario observed is that, the ones with the power to influence takes advantage or exploits the ones who are weak in power or are highly dependant. In the case of global supply chain management, the companies of well known brands tend to have large number of small suppliers from different developing countries to work for them; naturally the suppliers are in a position where they are facing immense competition in order to be a part of the supply chain of these powerful corporations for which they strive to offer the lowest possible price sacrificing minimum working standards. For this very reason the big time corporations are facing criticisms from the media, consumers and pressure groups for taking advantage of the various initiations the suppliers take in order to save up on cost of production and thus provide low-cost goods and those initiations are executed in the form of poor wage payments, poor working conditions, poor environmental protection and poor health and safety standards in the supply chain.
It has become highly vital to discuss regarding this whole issue of the challenges being faced in global supply chain management. Along