Globalization of Supply Chain Management Essay

1426 Words Mar 26th, 2013 6 Pages

The globalization of supply chain management is the natural outcome of today’s expanding consumer markets as companies struggle to meet the dynamic needs of growing markets and new customer segments.

It has led to a high degree of specialization under an ever-expanding world market. People with special skills can work with little overheads and market globally. Small companies can flourish.

The pace of globalization on the supply chain continues to foster opportunities, challenges and uncertainties for companies around the world. Almost every business is involved in one or more supply chains and Globalization now has an impact on every company, large and small.[1]

The purpose of this report is to:
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It was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This was done with the goal of increasing their competitive advantage, value-adding, and reducing costs through global sourcing. [4]

Globalization on Supply Chain Management
Impact of Globalization

Globalization has created a more competitive and connected economic environment, offering both opportunities and threats to organizations. The distance and time between different countries, consumers and businesses has effectively been compressed by through new technology, communication channels, more efficient transportation and logistics and greater networking between organizations.[5]

Businesses now have more options than they have had in the past in regards to where and how they produce their products, which markets and consumers they should target and how they should communicate with both their suppliers and buyers.

Globalization has also shortened the life cycle of many products, in particular new and innovative technologies. Due to the greater number of organizations involved at an international level, it is easy for products to be copied, duplicated and improved by competitors from all over the world. However, in some ways this increased competition can be good for the end consumer.

Essentially, globalization has made the supply chains for many products more complex and

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