Seminar Research Paper
DDBA 8510 Seminar in Global Supply Chain Management
Dr. Moutaz Abou-Robieh
June 30, 2013
This paper was done to cover the DDBA-8510-1 Seminar Global Supply Chain Management final seminar research paper. Supply chain management, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible (Handfield, 2011). Global Supply Chain Management involves a business or a company’s worldwide interests and suppliers rather than simply a local or national orientation. Companies have used enhanced technological advancement to improve their global supply chain. There are various advantages and disadvantages of global supply chain. Increasing globalization and companies willing to market and do business globally are facing some issues in regard to effective business productivity. With an increase in technology and most company going global for price reduction supplier relationships and management has been essential to productivity. Supplier relationships and management has a vital impact on the future direction of global supply chain management research. This paper analysis and explores global supply chain management and supplier relationships.
Global Supply Chain Management
Supply Chain Management includes all the activities that must take place to get the right product into the right consumer’s hands in the right quantity and at the right time – from raw materials extraction to consumer purchase. SCM focuses on planning and forecasting, purchasing, product assembly, moving, storage, distribution, sales and customer service (Texas A&M University, 2013). Global Supply Chain Management involves a business or a company’s worldwide interests and suppliers rather than simply a local or national orientation. Global supply chain management involves various amounts of interaction between different companies in various countries. Global supply chain originated when companies migrated to looking for expensive part and labor globally for effective cost savings. The mean focus of companies participating in global supply chain management is cost. Companies focus on cost because it is a primary factor of dealing with local or overseas suppliers. According to Epiqtech (2012) while local labor cost may be significantly lower, companies must also focus on the costs of space, tariffs, and other expenses related to doing business overseas. In regard to cost, time is also an issue and factor when dealing with global supply chain management. The productivity of employees’ overseas and rickety shipping times can cause a negative or positive affect on the company’s lead time into product production. Effective supplier selection is also essential to global supply chain. According to Texas A&M University (2013) for efficient supply chain management companies must make decisions about the number of suppliers to use. Fewer supplies may be easier to manage but could also lead to potential problems if one vendor is unable to deliver as expected or if one vendor tries to leverage its supply power to obtain price concessions. The main factors of company’s transformation to a global supply chain as we know is having external supplier globally to enhance supplier’s diversity which reduces cost and increase revenue while improving reliability. According to Nahla (2003) manufacturers typically set up foreign factories to benefits from tariff and trade concessions, low cost direct labor, capital subsidies, and reduced logistics cost in foreign markets. Companies have used enhanced technological advancement to improve their global supply chain. According to Nahla (2013) global supply chain management trend is evolving as new technologies...
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