What Is Global Supply Chain?
Many people, most of them have only heard the word supply chain, but do not know what supply chain is. In the era of globalization and development, the supply chain plays an important role in business. In this article, we will introduce what global supply chain, the characteristics of the global supply chain and its importance.
What Is a Global Supply Chain?
A global supply chain is a network between an organization’s suppliers and consumers, a network that includes transactional activities, people, information and resources. After centuries of development, leading supply chain partners now reduce internal and external redundant processes, execute them efficiently, and make the process of delivering products more transparent.
Supply chains are not just about moving goods from the manufacturer to the consumer; supply chain innovators also need to integrate business processes and supply chain networks to deliver the best services and products with the help of collaborative systems that enhance the customer experience.
What Are the Characteristics of the Global Supply Chain?
The goal of the supply chain is to deliver products in the necessary quantity, quality and time at the most competitive price, for which the supply chain includes the following main characteristics
Flexibility is very important in the supply chain, which should be ready to react to any kind of unpredictable or extremely disruptive things (such as natural disasters, epidemics or economic instability, etc.). In other words, respond effectively to changes in supply and demand.
The supply chain can deliver products to retailers or other members of the supply chain quickly, which can help the company to accept inventory and transfer inventory in a short period of time.
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In today’s era, the supply chain can be expanded globally without local restrictions.
The supply chain will incorporate the latest technology in various supply chain processes in a timely manner as a way to ensure competitiveness and provide excellent service at all stages.
The supply chain is a series of coordinated activities where suppliers, transportation, manufacturers, customers, etc. make up the supply chain. These activities have a certain complexity and involve many human and material resources. In order for the entire process to be completed successfully, all parties involved must function correctly. Each stage or link has to be planned in detail to minimize potential risks.
There is a continuous flow of information throughout the process, from supply to final delivery.
Why the Global Supply Chain Is Important?
Both domestic and global supply chains will involve the following.
Delivering raw materials and turning them into marketable products.
Coordinating with suppliers, manufacturers, warehouses, retailers, and transportation partners
Transportation to distribution locations.
Managing logistics for operations, marketing, product development, marketing, finance, customer service, and finance.
Business development and distribution
A good supply chain improves an organization’s financial position by providing much-needed goods and services and simultaneously promotes job creation. The first benefit of a global supply chain is a reduction in the cost of doing business. So far, some business people believe that expanding the world supply chain can effectively reduce product prices. The second benefit is that global supply chains allow you to sell your products around the world and increase your customer base. The third benefit is that you can grow as a supplier in terms of producing products, increasing the opportunity for innovation, and also sharing expertise in markets and new workforces.
Global Supply Chains Matter Because They Impact Us All
GSCs make manufacturers and industry sectors more profitable by reducing costs and encouraging business enterprises to expand into international markets. Global supply chains must ensure that international networks of manufacturers, suppliers, warehouses, transportation companies, distributors, and retailers operate smoothly. The goal of the supply chain is to reduce costs, increase efficiency and reduce risk.
The consequence of poor communication is that supply chain bottlenecks will form, so communication between them needs to be standardized, whether it is a business, an organization, or a government. This is true for manufacturers and suppliers to wholesalers, retailers, and other distribution points, and for the delivery of raw materials to finished goods.
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