9.3 International supply chain - risks and advantages
The management of international supply chains requires more acumen compared to supply chains which are totally local in nature. This is because management of international supply chains requires management of complex interrelationships among diverse parties providing input in the value creation. The challenge lies in managing the 'offshore' or 'foreign' elements of the supply chain, whether we are concerned with the sourcing, logistics or marketing and distribution side. This is not a small challenge when the aim is to streamline the extended international system. If we refer back to our earlier chapters and recap the trends and practices which we have seen to be emerging, we will perhaps be able to appreciate that there is a strong likelihood that these techniques cannot be applied very easily or with any measurable certainty of success. The very reasons which encourage firms to go offshore often make it impossible to apply state of the art management practices in the extended supply chain.