Global Supply Chain Management: Essay Sample to Get Valuable Data

Published: 2022-04-01 10:21:55
Global Supply Chain Management: Essay Sample to Get Valuable Data
Type of paper:  Essay
Categories: Supply chain management
Pages: 5
Wordcount: 1144 words
10 min read

Global supply chain management is not simple. However, once you manage to get the basic ideas behind the process, you obtain an opportunity to make your business thrive. At this point, it is indispensable to mention that striving to relish the benefits of the undertaking, businesses should find effective ways to deal with critical challenges. Make sure you acknowledge the possible issues and can overcome them without a negative impact on the company.

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Irrespective of the problem, whether it is a data-related problem, language barrier or any other challenge, there is surely a way out. Keep reading to learn the basics of global supply chain management, its specifications, peculiarities, challenges and solutions. Following the below-mentioned guidelines, you will have a chance to keep your business productive, effective and profitable.

Key Notions and Definitions

Before you start building the strategy and compiling the most effective management plan, you should deal with the basic definitions. A global supply chain is a worldwide system that is used by businesses to manufacture products and services and distribute them. The whole process begins with the raw material, processes through delivery, and finishes the moment the product reaches the recipient. Thus, the participation of various parties is presupposed, including the producers, suppliers, warehouses, distributors, freight forwarders and retailers. Such entities take responsibility for exchanging information and moving resources around the globe.

In the overwhelming majority of instances, such supply chains spread across the countries and continents, searching for low-cost materials, production cost and labor. At this point, it is inevitable to introduce a notion of global supply chain management (which is also known as global SCM). In short, it is the process associated with the administration and guidance of the entity network aimed at the production and distribution of goods and services around the world. Although the objectives of specific companies vary, the goals of the global SCM are to enhance the revenue, eliminate inefficiencies, and provide products and services on time.

Most Common Global SCM Challenges and Ways to Deal with Them

Development, administration and management of the business is a complex and exacting process that requires perfect knowledge of the sphere and awareness of its peculiarities. The aim of the SCM is to meet the requirements and demands of the customer, distributors and other entities faster, cheaper and more efficiently. At the same time, it is critical for the quality of the products and services to remain high. To sum it up, you need to take care of many different aspects and processes in order to keep your company functioning and to make it stand out from the crowd of competitors.

Global supply chain management

Besides, it is critical to understand that deep and profound knowledge of the process specifications, potential risks, and challenges are the small stages to big success. Check out some of the most typical downsides and issues that may prevent your business from desired prosperity.


It is impossible to find a customer who does not expect fast delivery of the necessary goods or services. Therefore, the fundamental task of the company is to care for communication and logistics, making it easy to reduce the shipping time and guarantee a timely supply of the products.

Additionally, it is inevitable to mention the lead times, which can affect the efficiency of the company. Make sure you present relevant information on the website so that the customer knows how long it will take to get the necessary items. Firm shipping and completion dates are the keys to success.

Cash-Related Problems

Although the popularity of electronic money is increasing every single day, cash flow remains one of the most significant problems businesses come across. Additionally, it is still one of the critical issues in global chain supply management. Each company should keep track of the expenses, but with so many services functioning simultaneously, this process becomes complicated. Therefore, the creation of a comprehensive calendar of future expenses remains one of the most efficient solutions.

Data Management

Irrespective of the company specification, you are likely to get, share, send and process a lot of valuable and sensitive information. Therefore, data management is a complicated and time-consuming aspect that requires ultimate attention. In the overwhelming majority of instances, it becomes the point that predetermines the prosperity of the company's functioning. Thus, it is fundamental to detect the effective and influential solutions that will help the company stand out from the crowd.

Compliance and Accountability

Considering global sourcing, companies should take into account social compliance. It is critical to mind due diligence when it comes to the working conditions, child labor experience, fair compensation and similar practices. Illegal and unfair policies may damage the brand and its reputation a lot.

Quality Control

Manufacturing is an exacting process that is not perfect most of the time. Therefore, you should know about the US defect levels you should meet in order to get different products being accepted on the market. At the same time, if you opt for a company or service that is not based in the US, you risk facing low-quality goods with unacceptable defects.

Language Barrier

Although most people can understand English, they conduct routine operations mainly in other languages. Consequently, misunderstanding is another issue global supply chain management faces. Hiring interpreters, dealing with a lot of other specialists and accomplishing a whole range of other actions will take extra time, money and effort.

Time Zones

As it has already been mentioned, communication is the central point in business functioning. Viewing global supply chain management with its risks and challenges, it is indispensable to take timing into account. As we are talking about worldwide cooperation, we should realize that the time zones may vary a lot, with certain companies having 3, 5, 8 and even 15-hour time differences. It may be an extra problem that will make the communication more challenging and will require quick and smart solutions.

Basic Advantages of the Effective SCM

Once you have found effective ways to deal with the risks and challenges of global supply chain management, you should start using it for the advantage of your company. Here are some of the most prominent factors that will help your brand thrive.


One of the most critical advantages of global SCM is sourcing. Using the option, the company or service gets access to an extensive collection of manufacturers and distributors around the world, which can make the assortment much bigger and more effective.


A properly selected management plan is the way to cut the cost of production. The availability of different sourcing options helps to reduce expenses, enhance margins and offer beneficial cost-efficiency.


Finally, global supply chain networks create impressive possibilities for companies that strive to grow, develop and expand. There is always a chance to sell the goods internationally, gain a reputation on the market and become a widely recognized and appreciated brand.

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