'Never break the chain'. Harrowing words from Fleetwood Mac and very appropriate for this blog entry on global supply chains.
In this entry we'll be identifying two advantages from operating a global supply chain
Competitive
First off the mark, they're extremely competitive. Businesses from other countries have to increase their standards, due to the competitive nature of the 'globalised' world. Because of the many suppliers and contracts available, firms can reduce the amount of stock that needs to be stockpiled.
Flexibility
The ability to respond rapidly to changes to supply chain speed, destinations and volume is a great asset for any firm to have. Firms with global supply chains have a greater supplier selection with multiple sourcing options.
There are many more advantages... and disadvantages such as security problems, demand variations and huge investment costs. But I wanted to keep this entry short and interesting.
Regards,
Sam
Source:
Pravin Kumar et al (2008) Flexibility in Global Supply Chain: Modelling the Enablers, Journal of Modelling in management,Vol 3 No. 3 2008
