There is no doubt that the pandemic has had an unprecedented impact on how companies perceive the supply chain. However, the system shock can help usher in a new era of increased communication and visibility between suppliers, as well as the effective use of technology to accelerate supply chain strategies. A global supply chain typically arises from your own organization in your home country as a buyer through your supplier levels. These are the providers that will be located in other parts of the world. In trade, global supply chain management is defined as the distribution of goods and services in the global network of a transnational company in order to maximize profits and minimize waste. [1] Essentially, global supply chain management is the same as supply chain management, but focuses on transnational companies and organizations. Essentially, IoT collects tons of data that needs to be analyzed. That`s why supply chain managers need to find ways to use them as efficiently as possible. For example, not so long ago, IoT data was critical to route optimization, risk mitigation, and better demand planning. Today`s IoT devices are used to collect information about individual drivers, their health status, and the condition of a vehicle`s tires. By carefully managing their supply chains, companies can choose the most cost-effective solution at every stage of the chain and avoid business costs. This gives a company a real competitive advantage. Global supply chain management has six main objectives: logistics management, competitive orientation, customer orientation, supply chain coordination, supply management and operations management.
[2] These six areas of focus can be divided into four main areas: marketing, logistics, supply management and operations management. [2] Successful management of a global supply chain also requires compliance with various international regulations established by various non-governmental organizations (e.g. B the United Nations). When an industry looks for the products and services it needs to produce the goods consumers demand, it turns to supply chain managers. A once obscure job title has become the focus of many companies and businesses around the world. The importance of sourcing the materials needed to run a production plant cannot be underestimated, so supply chain management has never been as exciting, innovative and revolutionary as it is today. Global supply chains ensure better movement of goods and services for everyone, everywhere, whether they know it or not. The 21st century logistics framework allows managers to identify and implement the key underlying competencies contained in the six operational competencies. The framework gives managers the freedom to decide what they believe are the most important skills that need to be implemented to operate a successful global supply chain. [8] With this in mind, leaders need to figure out how to transform their global supply chain management and adapt to growing customer demands. According to a recent report entitled Future State of Digital Supply Chain Transformation, more than 75% of companies consider the integration of digital tools to be a very important element for effective supply chain management (SCM). Managing the global supply chain is the business of the economy.
A supply chain involves a series of steps to bring a product or service to the customer. The steps include moving and processing raw materials into finished products, transporting these products and distributing them to the end user. Companies involved in the supply chain include producers, suppliers, warehouses, transportation companies, distribution centers, and retailers. Hopefully, the article has provided an in-depth understanding of the global supply chain and how it works. Today, supply chain software development is critical to overcoming logistics challenges. By this we mean the introduction of technologies that have proven effective in improving global supply chain management, such as: Blockchain and IoT can provide real-time tracking of each package down to its identification number. It is also easy to monitor the condition of goods, as well as possible transfers (when a task is delegated to another person and becomes the most vulnerable). In addition, 57% of executives said that accuracy is an important value factor that can be achieved through greater transparency. 5. Ensure a steady supply of products that can be easily predicted.
Fortunately, emerging technologies in the global supply chain can significantly increase transparency throughout the chain, making it agile and resilient. According to Forbes Insights, nearly two-thirds of companies surveyed see the benefits of leveraging new technologies such as IoT, AI, ML, robotics, and blockchain. These disruptive technologies can give companies a high level of transparency and control over all logistics processes. Let`s discuss each of them in more detail. The value of effective global supply chain management is increasing year by year, as nearly 10-12% of global GDP is made up of logistics activities. This percentage shows that people tend to consume more and more. And in addition to the need to receive deliveries on time, customers are looking for a seamless and ultra-fast shopping experience. The new global supply chain management model quickly addresses and responds to new changes, allowing you to minimize or even reduce outages across the network.
The logistical framework of the 21. Century is a global supply chain management theory developed at Michigan State University and introduced to the business world in 1999. [8] The framework identifies six operational competencies required to operate a global supply chain. Technology is used in the supply chain to connect people and processes. However, people involved in the supply chain will not use the technology unless they find it easy to adopt. Carefully selecting and implementing the supply chain technologies a company uses is critical to supply chain success. Information management, internal communication, connectivity, and collaborative forecasting and planning are the skills that include the integration of technology and planning. The ability to use transparent transactions throughout the chain to allocate resources throughout the chain is called information management. Internal communication refers to the ability to communicate within the company in an appropriate manner. The ability to communicate and exchange information between the company and the external supply chain partner is called connectivity. Collaborative forecasting and planning refers to the ability to work with clients to identify and develop common visions. The United Nations Global Compact seeks to mobilize a global movement by helping companies be responsible and advance societal goals.
[11] The organization has created a set of ten principles that it expects to follow for businesses. The ten principles fall into the broader categories of human rights, labour, the environment and the fight against corruption. To remain competitive, companies must develop comprehensive logistics strategies that adequately and effectively meet the customer`s needs. In this way, companies are able to take advantage of the increasingly profitable global market. [6] Supply Chain Management (SCM) refers to the monitoring and control of all the activities a company needs to convert raw materials into finished products, which are then sold to end users. SCM provides centralized control over the planning, design, manufacturing, inventory, and distribution phases required to manufacture and sell a company`s products. Although implementing blockchain in the supply chain is a difficult task, once completed, it will be a powerful tool for an effective SCM. In addition, the integration of blockchain into the SCM system has a positive impact on the market, leading to even faster growth during the period 2019-2023. A global supply chain uses low-cost domestic sourcing and refers to the supply of products and services from countries with lower labor rates and production costs than the country of origin.
Successful management of the global supply chain stems from the implementation of the appropriate concentration framework, compliance with international regulations of governments and non-governmental organizations, and the identification and proper management of associated risks while maximizing profits and minimizing waste. Our technical team is highly qualified in software development for projects of varying complexity. Innovecs is ready to work with growing startups that need custom SCM solutions based on disruptive technologies such as blockchain or AI. Or if you`re a large company that needs integrated supply chain solutions, Innovecs is here to help. Demand risk is a category that includes risks related to the availability of the finished product. [4] Demand-side risks arise mainly when companies are unable to meet customer needs […].