Supply chain management is an essential aspect in the success of an organization. It refers to a combination of both science and art that a firm adopts to get raw materials and delivery of products or services to end users.  In the modern economy, there are various trending issues in the supply chain management.  This can be attributed to the today’s market that is customer driven. The issue of globalization is also a matter of concern as far as supply chain management is concerned. With the increased level of competition, it is imperative for the organizations to ensure that they have the right product or service at the right place at the right time. Customer satisfaction remains the utmost goal of the supply chain management.

The globalization process has forced several organizations to ensure that efficiency and cost saving remain the utmost goal. Increased labor costs, environmental regulations, and shorter product life cycle are the trending issue in the supply chain management.  To achieve this objective, most organizations are expertly managing the supply chain in all their operations. With the trending issues, the corporate world is turning to the relevant ideas at the expense of the old ideas in the supply chain management. Each organization in the modern world adopts a strategy that fits the organizational goals.

Although globalization has over the years been beneficial to the organizations through the creation of new markets, it has also presented numerous numbers of challenges to the supply chain executives. It is the obligation of these officials to ensure that customer satisfaction, quality and efficiency in the provision of goods and services is not compromised. This implies that these firms have to change their supply chain in such a way that cost reduction and efficiency are realized. Outsourcing and mergers have become evident in the modern supply chain management. In most cases, this cost-cutting mindset can be detrimental. With this in mind, firms may tend to make less optimal decisions and strategies that will lead to poor long-term outcomes.

In addition to this, there is also a significant rise in the cost of managing supply chain as customers demand quality and efficiency in product and service delivery. This has prompted organizations to adopt new techniques that will ensure better service and maximize profits. Nevertheless, the globalization process faces the challenge of uncertainty in the potential overseas markets.  The distribution costs in foreign markets could also be extremely high. It is also prudent noting that the products and services in overseas markets have a long journey. This implies that the firm must have several distribution points in all the destinations. Global supply chain hence becomes an essential aspect of globalization.

The complexity of managing global supply is a major challenge in the dynamic modern economy. The volatility and intensity involved in global supply have been a thorny issue for most organizations. Managing organizational change brought about by going global is a major challenge to many multinational companies. It is, therefore, essential to have an integrated supply chain that will help realize organizational goals.

References

Adekola, Abel Sergi, Bruno S. (2007). Global Business Management: A Cross-Cultural Perspective. Chapter 1 (International Management and Cross-Cultural Perspectives) and 2 (Changes and Growth in the International Marketplace).

Govindarajan, Vijay; Gupta, Anil K. (2001). Building an Effective Global Business Team. MIT Sloan Management Review.

Wisma, Michael (2008). Global Business Management: Current Trends and Practices. The Journal of Applied Business and Economics.

 
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