| Global supply chain management has emerged as | | | | controlling risk factors 2. In parallel with |
| a major topic in the age of globalization and | | | | the above activities, an information network |
| now it is sitting at the heart of the whole | | | | is hard at work. Information sharing and |
| system. But you might be asking yourself, so | | | | collecting is very important to run an |
| what exactly is supply chain management and | | | | effective global supply chain management |
| how can it affect my company? | | | | system |
| | | | |
| Let's understand what it is first. | | | | The efficiency of the global supply chain |
| | | | management of any company can make everything |
| From the production house the product starts | | | | look easy. However in order to attain those |
| it journey and travels through to the | | | | efficiencies your employees need to |
| supplier, distributor, retailer and ends at | | | | understand the fundamentals. The most basic |
| the hands of the consumer. This whole | | | | fundamental is that supply chain management |
| journey is a well managed mechanism and | | | | is not just domestic anymore nor is it just |
| controlled by supply chain management. When | | | | for large corporations. Small and midsize |
| it goes global and the journey of the product | | | | companies have to be global supply chain |
| covers multiple countries, then it is called | | | | management savvy if they wish to survive. |
| global supply chain management. | | | | |
| | | | The growth and development of a company is |
| With globalization, business has become more | | | | largely dependent on the global supply chain |
| complex. Global supply chain management not | | | | management system and its most important |
| only mobilizes products but also the entire | | | | asset - employees. |
| value added chain, in which financial | | | | |
| activities and sharing of information are | | | | Are your employees top-notch when it comes to |
| also included. | | | | global supply chain skills? If you can't |
| | | | answer yes then you better start thinking |
| Big companies have many hubs around the | | | | about training because your competitors are. |
| world. Raw materials, finished products, | | | | |
| finance and other pertinent information | | | | So, what type of training is needed |
| travel from one hub to the next. Global | | | | companywide? |
| supply chain management is the basis of the | | | | |
| whole operation. | | | | First, introduce employees to global supply |
| | | | chain management. Don't assume they grasp |
| The cost of production and profitability is | | | | the concept. With increased globalization |
| dependant on the global supply chain as well | | | | and offshore sourcing, global supply chain |
| as how well employees throughout the company | | | | management is becoming an important issue for |
| are trained for such fast-paced tasks. | | | | many businesses. So, make sure the |
| | | | foundation is laid. |
| Global supply chain management has two major | | | | |
| components: | | | | Second, employees should learn the underlying |
| | | | factors behind the trend to reducing the cost |
| 1. International movement of products and raw | | | | of procurement and decreasing the risks |
| materials, title transformation, payments, | | | | related to purchasing activities. |