Management

This week we reviewed global logistics, risk management, and the product and supply chains. Identify and describe the global market forces, risks, development chain, supply chain, and strategies from one of the following perspectives.

Supplier
Manufacturer
Retailer
Customer
Decision Maker

· 750 – 1,000 words (3 – 4 pages) written essay
· APA format required (including title page, reference page – no abstract required)
· 5 – 7 academic resources for 300/400 level courses
Content of paper should address the concepts covered this week utilizing personal experience as well as research

ANSWER

Global Business Management

Global business management is dynamic respect determined by several factors. This paper focuses on the global market forces, risks, development chain, supply chain, and strategies from a supplier’s perspective. Various global market forces affect a supplier; demand expansion is the first force primarily contributed by the diversification of what is known as the ‘Internet of Things.’ Its growth within industries like the healthcare and automotive industries directly results in increased demand for electronic products. Rapid technology transitions is the second force; this results in favoritism amongst those suppliers with more intelligence, speed, and data, thereby making manufacturers in more advanced and developed parts more advantageous than the others. Commodity price increases in the third force; this is caused by shortages in supply and consistent rising costs of raw materials. Subsequent price increase results in supply price-hikes of some electronically produced products like gold and palladium, thereby affecting the final consumers. Global trade and tariff uncertainty is the fourth force; determination of trade and tariffs globally would directly contribute to the high surety among various business leaders and consumers hence frequent purchasing activity. Finally, labor shortages come as the fifth force; the widespread discernment that there is low payment in the supply chain management has hindered several young professionals from venturing into the career hence a sequential global scarcity in qualified personnel in this field (Kim & Chai 2017).

Risk management is a crucial factor in success; some of the global supply chain risks are political and governance changes; political instability significantly affects trade globally. For instance, the Brexit led to trade fluctuations hence the weakening of the British pound. Extreme weather events is the second risk primarily affecting ocean freight; high storms and tides of the ocean can damage supplies in transit resulting in excessive losses in the supply chain. System connectivity is the third risk; modification and integration of systems pose too many risks in the supply chain because of the possibility of losing critical data and information. Economic instability is the fourth risk that is likely to contribute to a massive reduction in the global supply chain capability. For instance, South Korea’s 7th largest shipping company’s bankruptcy resulted in a significant global supply chain capacity reduction. Supplier consistency is the fifth risk; in many scenarios after a catastrophic disaster, approximately 45% of suppliers are likely to maintain consistency because raw and recovered materials are still subject to risk disruption. Finally, data integrity and quality are the sixth risk; procurement of inappropriate and wrong data may lead to subsequent low profitability and high failure possibilities. The negligence to share data with trusted and proper supply chain partners may result in data integrity weaknesses, hence high risks (Sreedevi & Saranga 2017).

Global chain development requires various factors to realize its success. It requires more information on international laws, logistics, language, customs, culture, currency, politics, and language to ensure profitability and create a sustainable business environment. For a supplier to achieve and ensure the highlighted factors, he must acquire a high-ranked organizational obligation that primarily prioritizes supply chain management. The supplier should have a cross-sectional international supply chain development committee; the supplier should then identify the basic requirements that suit the international supply chain; the supplier should also highlight product priorities in consideration of the global needs and opportunities. Other procedural factors determining a successful global supply chain are identifying worthy suppliers and markets, evaluating markets and suppliers to capture a worthy supply pool, and coming up with a selection methodology for suppliers. Finally, the supplier should either select or confirm current suppliers, implement primary consensus with necessary profound procedures, monitor, evaluate, revise when necessary, note significant cost savings, and cycle-time developments. The supplier should form a consistent and sequential benefit communication procedure to the appropriate stakeholders (Zhang, Pawar & Bhardwaj 2017).

Research shows that various businesses are establishing global supply chains due to their capability to reduce costs. The firms can take advantage of the low production costs allowing them to outsource to free capital from subordinate activities and still experience large-scale production. Global supply chain management comprises planning on how the whole supply chain will work with a significant objective of enhancing the best customer service level while ensuring minimal operational costs. Some of the key objectives of establishing a sustainable global supply chain are increasing flexibility in customer transactions and increasing product delivery speed to customers. Supply chain management consists of integrating suppliers, warehouses, manufacturers, and retail outlet networks to ensure the sourcing, supplying production, and shipment of the right goods and services in the recommended quantities to their rightful locations and timely intact delivery. A successful supply chain management will need the right people, processes and the most suitable technology.

To ensure a successful supply chain, one needs to have effective strategies like mitigating risks; for instance, this can be achieved by shipping smarter, thereby being to know the international laws, cultures and customs. Another recommended strategy is traveling to access the most suitable prices for raw materials and affordable places for goods manufacturing; study of the local competition is the third strategy since it enhances one’s knowledge of dealing with rapid and consistent changes. Security of backup buyers is another strategy to ensure continuity in the supply of goods if the first supplier fails due to bankruptcy, political turmoil, or regime changes. The final strategy is to inquire about tax and customs in various countries; this will equip the offer of incentives and free trade agreements hence enhancing exports of goods to several foreign markets.

References

Kim, M., & Chai, S. (2017). The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics, 187, 42-52.

Sreedevi, R., & Saranga, H. (2017). Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation. International Journal of Production Economics, 193, 332-342.

Zhang, M., Pawar, K. S., & Bhardwaj, S. (2017). Improving supply chain social responsibility through supplier development. Production Planning & Control, 28(6-8), 500-511.