Overview of chapter 9
We have examined the reasons why supply chain management should incorporate an integrated system view of supply chains. A competitive and value driven supply chain is required in order for businesses to be responsive to market demands while delivering the 'leanest' value to the customers. While this approach is justified and examples of leading firms adopting this vision abound, there remains legitimate concern about the practicability of such an approach. This is mainly due the ever expanding tide of globalisation and concerns about its effects on supply chain performance. In this chapter we will address the issues which effect the application of superior logistics or supply chain principles because of the international dimensions of supply chains. Our intention is to identify the problems and look to at ways to overcome these problems which are due to the international nature of many supply chains. This is essential in order to maintain our competitive positions under the present trend of globalisation. In this respect this chapter will resonate strongly with what you have learned in international business, marketing, logistics management and international transport systems.
Learning outcomes
At the end of this chapter, you should be able to:
- explain the effects of globalisation on supply chain management
- identify the problem areas in supply chain management when it spans across national frontiers
- explain the role of overseas suppliers in producing 'value' driven products
- identify the challenges of international logistics in efficient management of a 'lean' or 'agile' supply chain
- identify the critical control issues in international supply chain management.
Topics
- 9.1 Introduction
- 9.2 Globalisation and SCM issues
9.2.1 Global business forces - 9.3 International supp ly chain - risks and advantages
9.3.1 Risks in international supply chain
9.3.2 Risk management strategies
9.3.3 Risk management framework - 9.4 Issues in intern ational supply chain management
- 9.5 Logistics infrastructure: Regional issues
- 9.6 Summary