Business Administration , 3rd year
Project by Arhire Alexandru
Coordonating professor Pavaloaia Daniel
Chapter 1. Issues within the Global Supply Chain Management System4
Chapter 2. Global Supply Chains Management – Company Strategies5
Chapter 3. Global Supply Chain Model6
Chapter 4. The virtualization of Global Supply Chain Management8
Chapter 5. Conclusions10
In order to understand what global supply chain management is we must first become familiar with the concept of supply chain management. “The supply chain management is the network of services, material and information flow that link a firm’s customer relations, order fulfillment and supplier relations processes to those of its suppliers and customers. It is the science of developing a strategy to motivate, control and organize the resources involved in the flow of services and materials within the supply chain”. Nowadays, more and more companies source globally, sell globally, or compete with some other company that is involved in such activities. Thus, global supply chain management (GSCM) represents a central area of focus for many businesses and business schools today.
“Although the extraordinary growth of GSCM attests to its robustness and practical importance, the field is diffuse and complex. Many methods and perspectives on GSCM have emerged from logistics, operations, marketing, management, economics, sociology, personnel, information systems, and international relations. Their diversity and rapid growth make it hard to keep abreast of significant developments. Moreover, many of these approaches have evolved with relative independence, paying little attention to how they relate to existing methods or interrelate with each other. This makes it difficult to accumulate wisdom in the field and to develop a coherent knowledge base to guide research and practice.”
Many businesses have found “global supply chain management” to be an important issue when trying to outsource in regions across their borders. This can be explained by the increase in globalization. To outsource on a global level is difficult because it involves doing business with a variety of companies and suppliers which have their own codes of business conducts and various perspectives on business ethics; mainly on how to trade internationally.
Global Supply Chain Management involves two big concepts: the supply chain management concept which was discussed above and the concept of globalization. This concept infers the cross-border movement of good and the emergence of global competitors and opportunities across competing supply chains with an industry.
However, the current trend towards the globalization of supply chain management leaves many managers confused. Managers often question the differences between a global market and a single market, in that many of the same conditions exist in both. Although this may be true, the complexities of cross-border operations are exponentially greater than in a single country, and the ability to compete in the global environment often depends on understanding the subtleties that emerge only in cross-border trade—that is, in “Global Supply Chain Management”. Chapter 1. Issues within the Global Supply Chain Management System
For companies to operate on a global level is no easy task. There are many complications that arise from trying to do business across borders.
1. The first issue it faces is the costs and expenses of doing business “across borders”. Dealing with international business is a difficult task because it involves many types of different businesses in many countries. Costs for the company may involve: renting the required space, state taxes, transportation and others. “Additionally, companies need to factor in the exchange rate. Obviously, companies must do their research and give serious consideration to...