Uncertainty and the global supply chain - Term Paper Example

Uncertainty and the global supply chain affiliation Uncertainty and the global supply chain The global market in supplychain has many uncertainties that make trade in the global market an important issue. According to Daniels, Radebaugh & Sullivan (2013) supply chain the in global market has specific requirements that organizations have to adhere to in order to suppress the risks that may involved in the global market. The author further argues that the risks an organization takes when indulging in the global market is enough to completely paralyze an organization regardless of its size. However, the success in implementing effective supply chain strategies is enough to create a significant portfolio in an organization. The main argument posed by Daniels, Radebaugh & Sullivan (2013) point out that the uncertainties in the global overshadow the benefits that a company may have when it indulges in the global market in terms of supply chain. However, the author points out that with proper analysis of tools of trade, countries to trade with and the effective mechanisms to trade an organization may achieve the best from indulging in supply chain processes in the global market. For instance, Daniels, Radebaugh & Sullivan (2013) point out that countries simpler rules and regulation governing trade within their boundaries are the best in terms creating partners. Such consideration mitigates the risks involved in the global supply chain. The author summarizes the requirements in the global supply chain by arguing that external environmental factors create the major specifications that are required in the global market. They include adhering to trading rules and policies, acknowledging and analyzing competitors, understanding the target market need and quality assurance of goods in supply chain system. Engman (2005) shares the same sentiments in regards to adhering to the requirements needed to sustain the external environmental factors. Engman (2005) sensitizes the issue of legality in terms of the services and goods organizations trade in. Adhering to the legal provisions in the global supply chain places an organization in the best position to benefit from advantages of the vast global market. Engman (2005) refers to the efforts by the global trading bodies to minimize the occurrence of uncertainties in the market. The efforts the bodies can provide to the market are to ensure that organizations and consumers are protected from unscrupulous traders and suppliers. This is easily done by creating trade barrier, policies and recommendation that organizations are required to adhere to for their own safety and that of consumers (Engman, 2005). The author also sensitizes the point on the effectiveness by organizations to apply risk mitigation techniques. Risk mitigation techniques should be done in regards with the type of trade, type of market and the target market an organization seeks to indulge or please (Engman, 2005). For instance, they have been a global attention of transporting cargo through the gulf region in the Indian Ocean. If a proper mitigation technique has been put into place, an organization should avoiding plying such routes when transporting goods and cargo to Africa. However, Engman (2005) argues that there may be an issue that require agency on higher stakes that may need an organization to review their risk mitigation techniques to address the immediate need. Blanchard (2010) also points out that global supply chain requires effective trade strategies in order to mitigate risks as well maximizing on the benefits of trading in the global market. The author points out that global supply chain involves a lot of mediums before the final traded goods can reach their destined location. The mediums create a need for an organization to follow up on their supply chain process. Goods acquired in supply chain are mostly in bulk and represent a great majority of an organization entire inventory. Blanchard (2010) this point also makes organization to have effective supply chain strategies. Apart the requirements those organizations should adhere to, Blanchard (2010) describes global supply chain as a trading process that organizations should implement experience in analyzing the source of the involved products. For instance, there are global known organization that supply certified and quality goods depending on the response from buyers who share the same need. Globally established organizations like Coke and Pepsi should be given priority when analyzing the availability of possible suppliers. Conclusion It is an obvious assumption that, global supply chain has requirements that are great determinants on the level of uncertainties an organization is exposed to. With proper generated and implemented strategies, organizations can be able to suppress risk and effects of risks. From the analyzed sources, there is a shared sentiment that the uncertainties in global supply chain are created by the failure of organizations to have in place risk mitigation programs and strategies. References Blanchard, D. (2010). Supply Chain Management Best Practices. New York: John Wiley & Sons. Daniels, J. D., Radebaugh, L. H., & Sullivan, D.P. (2013). International Business: Environments and Operations. Upper Saddle River: NJ, Pearson Publication. Engman, M. (2005). “The Economic Impact of Trade Facilitation”, OECD Trade Policy Working Papers, No. 21, OECD Publishing. Read More