International Supply Chain Management

Tables of Contents

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Abstract 3

Introduction 4-5

Research questions 5

Literature Review 5

3.10 Supply Chain Management 5-7

3.20 Security of Global Chain Supply 8-10

4.0 Selection of international Logistics 10-12

5.0 Methodology and Data Analysis 12-15

6.0 Results and Discussion 15-17

7.0 Conclusion and Recommendations 17-19

References 20

Abstract

International trade has been the leading factor that enhances the development of international integration. However, the international trade development is primarily controlled by the management of global logistics. Also, the development is also strengthened by the provision of global supply chain. The primary aim of the global chain management is to improve the link between the distribution network, manufacturing and processing, the marketplace and the customers. The management helps customers to understand their market by receiving the higher level of service at the very low cost.

The development of the global supply chain has led to massive growth and development of businesses across the world. With the development and advancement of the technology, the world has become a single unit where people can interact and associate freely. The technological advancement has also ensured the growth of businesses by increasing the access of commodities to customers efficiently and faster. The supply chain is one of the crucial sectors of the economy of a state. Global logistics and supply chain management is a large unit of study that covers so many other important economic sectors such as; transportation management, strategic sourcing warehousing and demand management. Supply chain entail; sourcing, procurement, conversion and logistics management. Further, it also involves; coordination and collaboration with the channel stakeholders. Supply chain management assists to integrate the supply and demand management across many companies. How qualified are their employees and what quality goods are they producing. Supply chain management also determines the systematic and strategic planning and coordination of activities within the organization.

Introduction

Supply chain management can be defined as the management of the flow of goods and services. Supply chain management also entail; storage of raw materials, managing work-in-process inventory and also it involves, movement and storage of the finished goods. Logistics, on the other hand, is the management of the flow of the goods from the point of manufacture to the point of consumption. Logistics assist in providing and fulfilling the customer's needs. The world has witnessed massive growth of globalization in terms of the economic development. Logistics can be divided into two categories; the physical logistics and the abstract logistics. The physical logistics include; the integration of the information flow, materials, the end products, packaging, transportation and also security. Abstract logistics include; time, information, energy, and particles. Logistics management, therefore, entails everything that enhance the success of a business, from the producer to the consumer. Logistics ensures proper management of resources such as; food, raw materials, and equipment. Supply chain management promotes management easy and faster flow of information from the sellers to the buyers. Everyone aims at making and improving the business institution they operate. However, this can only be achieved by a proper information channeling within and outside the organization. Commercial success is enhanced by the right relation the business has with the customers and the people surrounding the company. The relationship with the clients can be further improved with the kind of services the company is offering to the customers and they are provided. Customers like to be given a satisfactory service, and this can only be enhanced by the people providing the services; the employees. An organization should ensure that their customers are well treated and served. With the globalization that has led to the development of sophisticated materials, the world has been a competition platform where business organizations compete for the little resources and customers. The success of the organization is highly dictated by the service they offer and also outside the company organization. The marketplace has become a very competitive area where only quality goods can manage to sell. The good planning can also determine the success of the business. Good and strategic planning and organization of business organizations are highly determined by the tactics the company employ to enhance its performance. Therefore, a business organization requires a good supply chain strategies that will oversee the organization to its performance. Global sourcing is the process in which products are obtained from the global market across the geopolitical boundaries to enhance the efficiency of product and delivery. Global sourcing help to subsidize the product costs. For example, reducing the cost labor, raw material costs, and trade tariffs. 2.0 Research Questions1. What are the main factors that can enhance successful global logistics?2. What are the challenges and factors driving the logistics and supply chain management?3. What are the key roles/functions of the supply chain management?4. Which are the main strategies in the global chain?5. How is the marketplace responding to the economic changes around the globe?6. What are the factors considered in determining the competitiveness of Logistics?3.0 Literature Review3.10 Supply Chain Management (SCM) Supply chain management has been used to enhance the globalization and specialization. According to Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002), it has been integrated to accommodate and manage both changes within the supply chains and materials. Due to the dynamism nature of the world that has been brought about by the globalization, the Supply Chain Management has been designed in a manner to accommodate the changes in the economic sector (Bowersox, D. J., Closs, D. J., & Cooper, M. B, 2002). The supply chain management connects different buyers and suppliers from various parts of the word with the financials organizations. Cooper, M. C., Lambert, D. M., & Pagh, J. D. (1997) argue that, by connecting them with the financial organizations, supply chain management enables both suppliers and buyers to conduct an automated supply-chain transactions. It enhances the purchase process. For example, one can buy something from any part of the globe without necessarily being physically available at the place (Autry, C. W., & Bobbitt, M., L, 2008). People order goods from different countries without having to go there physically to obtain the goods. This has actually assisted business organizations especially, the international companies. The supply chain of an organization consist of various departments. These units range from the procurement of the materials to product delivery to the customers. Supply chain management is the process of transforming the organization's supply chain into producing an effective, efficient and satisfying products (Ballou, R. H, 2007).

Supply chain management ensures efficient development of business organizations (Autry, C. W., & Bobbitt, M., L, 2008). However, the success of business organizations can be possible only if other factors are considered and integrated into the planning of the company. These factors include; the security system of business, environmental factors such as the transports system and other social issues in the enterprise environment. Integrating these elements into the operational planning will improve the supply chain management (Barry, J, 2004). Supply chain management involves several processes; first, it needs management customer service control. Customers generally judge the organization by the services the organization offers. Therefore, it is important for an organization to take their customers seriously and treat them well (Choi, T. Y., & Hartley, J. L, 1996). Besides, customer- organization relationship can be enhanced by the efficient customer service system of the organization (Barry, J, 2004). Customer service acts as the link between the organization and the customers; they get information from the customers about the organization. It also provides the customers with useful information about the organization. The information received from the customers is very helpful in determining the organizational goals and objectives (Frohlich, M. T., & Westbrook, R., 2001).

Customer service advocates for the corporate goods and services by selling out the organization's ideas about the products to the customers. Secondly, supply chain management process also involves the procurement process. Suppliers act as relevant stakeholders in the supply chain management (Cooper, M. C., Lambert, D. M., & Pagh, J. D, 1997). They determine effective strategic plans used to enhance and maintain manufacturing process and development of new products. Technology advancement has positively affected the international business growth. With technology, the world has become as a single region where people interact efficiently and faster (Barry, J, 2004). Another process involved in supply chain management is the physical distribution of products. In the chain management, the customer is the last stage in which the product reaches. The product has to be made available for the channel to be effective. Physical distribution involves considering time and space in which the business take place. Physical distribution is the common factor that links the customers and the marketplace (John Storey, Caroline Emberson, Janet Godsell, Alan Harrison, 2006). Performance measurement is another factor to be put into consideration when managing the supply chain system.

3.20 Security of global supply chain

Supply chain security refers to efforts to improve and maintain the security of the supply chain (John Storey, Caroline Emberson, Janet Godsell, Alan Harrison, 2006). It involves maintaining the security in the transport systems and ensuring that every cargo reaches the destined location safely. According to Sheffi, Y. (2001), Supply chain security includes the following activities; screening and validating all the contents of cargo transported, prior notification of the customers or the person to receive the goods, use of locks and tamper proof seals to enhance the security of goods carried. Sheffi, Y. (2001) further argues that it also involves checking the goods or cargo before they leave to destined country and ensuring that everything is appropriate. Supply chain security can be enhanced by using several security bodies and organizations. There are security organizations that has improved the security of cargo and ensuring that the goods reach the customer as intended. For example, the global container control program (CCP). This is an organization that works with other international organizations such as World Customs Organization to establish effective and efficient control of containers at the ports.

These organizations ensure safe and efficient checking of containers before they depart the ports to control the illegal business transactions such as drug trafficking. As John Storey, Caroline Emberson, Janet Godsell, Alan Harrison, (2006) explains that apart from controlling illegal commercial operations, they control and check the goods against terrorist activities such as transportation of dangerous c...