Challenges of Global Supply Chain Management

Topics: Supply chain, Supply chain management, Stakeholder Pages: 6 (1958 words) Published: June 29, 2010


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 with the growth in the global supply chain it seems that the relevant ethical issues that needs to be highlighted and dealt with by the management has become questionable. The issues relating to global supply chain management has become a subject of debate in the business world because each party seems to have their own stance, view and argument. The exploitation which is practised by the powerful corporations on the small suppliers is an issue which we cannot ignore. Moreover, the oppression which the workers go through as a result of this exploitation is simply inhumane. Hence, we really need to dig through this issue and find out the root cause of these problems in order to reach to a solution where all the parities can come to a ground of availing their fair share of gain.

This essay will consist of the issues that will discuss regarding the challenges faced by the global supply chain. Specifically there will be discussion on what kind of problem the workers go through, why the suppliers take initiations which deprive the workers, why and how the big corporations exploit the small suppliers, what the powerful corporations and the suppliers can do in order to improve the conditions.

Main Body

There are four types of challenges which globalisation faces. The first challenge is in different ways of doing business. In globalisation, we can see that different countries have their own ways or systems of doing business. Such difference is based upon their differed values, morals and norms. For example, in some countries practising bribery in business can be a part of their culture while in other countries it is strictly prohibited. Other examples like tax evasion, adulteration of products, creation of artificial scarcity to increase commodity price, exploitation of employees and consumers can be common scenario in some countries specifically in developing countries. As these issues are very normal in these countries though unethical, the...
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