Global Supply Chain Management - Book Report/Review Example

Summary of Global Supply Chain Management One of the key points highlighted by the is the global supplier selection. This issue is the management of how goods and services flow. It involves the movement and storage of goods from the raw material form to the finished product from where they are distributed and consumed. Interlinked networks are used to provide products and services in the chain of supply as required by the end consumer. A few rules are applied to control the supply chain. These rules include planning, monitoring and executing activities taking place in the supply chain. The objectives of these are to create value, build competitive infrastructure, leverage worldwide statistics, measure global performance, and synchronize supply with demand. Managers learn systematic approaches in the supply chain methodologies in the global markets. Since there is fierce competition in the same, there are several strategies provided for managers, enabling them to maneuver and bypass challenges in the global market. Managers are enlightened once they learn that a logical approach in the supply chain can get their companies ahead of the rest. They can save their money as well as eliminate the risk of interruption of the chain of supply and other issues. With these strategies, managers can achieve a lot and bypass all kinds of problems faced in the supply chain. If by chance one business fails to deliver their product or service to the next business in time, this then disrupts the entire chain. It may result in problems such as inflated costs, decreased shares, reduced revenues and a damaged business reputation. Companies with resilient competitive and responsive supply chains tend to have an advantage over other companies that do not strategize to upgrade their supply chain (Drake, 5). Supply chain risk management is the implementation of strategies that enable a company to manage the risks along the supply chain. It also reduces the vulnerability and ensures that there is continuity in the chain of supply. Managers are advised to learn how brittle their supply chain is to get what strategy to use in order to bypass a particular problem. Businesses are encouraged to identify the supply chain risks that they fear might affect the normalcy of the production and prepare for the supply chain disruptions. This readiness may enable businesses learn their mistakes and look for means and ways to put things in place. It is quite evident that the more global the business is, the more critical the location of the suppliers. Countries like Qatar, Finland and Norway, are well known for having resilient business supply chain disruptions. These minimized errors enable them to have successful businesses with no interruptions whatsoever. The supply chain may be disrupted due to factors like corruption, exposure to the business world, poor decision-making and unreliable transportation. Managers of these companies are advised to develop significant insights to upgrade their supply chains (Drake, 15). The understanding of resilience helps managers identify the hazards that face a business and the ability to manage them. Communication is vital in understanding the importance of knowing the vulnerability at every level within the chain of supply. Managers can eliminate all kinds of disruptions in the supply chain before they turn into real, unsolvable problems, and implement the right things for the respective businesses. Managers face many challenges while managing a global supply chain. Even the most successful supply chain companies face difficulties. Although the primary aim of any supply chain would be to satisfy the customers’ demands by delivering excellent products, as well as services, the competition in this field is very strong. These businesses need to work hard. Companies ought to strive to amplify growth and expand vastly into new markets that are promising. Global competition is inevitable, and it helps the supply chains establish themselves and become known due to the exposure as well as the flexible practices. There are several key supply chain challenges faced by managers while managing the same. Firstly, businesses need to achieve the fulfillment of their customers. This satisfaction is a significant challenge since there are other supply chain companies competing to win over as many customers as possible. Secondly, the boards expect these supply chains to have great efficiency with low costs, which is quite a task. Developing new production skills and excellent returns on investments is yet another significant challenge. Launching of new products, as well as services, is essential and gives the supply chains opportunities to market themselves in a proper manner. Another challenge is ensuring the safety of products and services throughout the supply chain. This protection looks into the proper transportation and storage of goods and services. Competition from other supply chains pushes managers to search for means and ways to be the best in the production of quality goods or services. Managers should know how to manage this supply chain, especially if they are in a competitive field (Drake, 5). Proper management makes customers flock since they are guaranteed quality services. Supply chains are led by managers and executives of all levels. Most of these managers face challenges especially in the global supply chain. The author gives a good insight on proper management of supply. His advice is worth following to ensure success in business. However, these managers have strategies as well as ways to cope with problems faced and can look for ways to improve their performances. Tips are provided for these company managers to enable them face challenges that come in most global supply chains and be able to strategize on what measures to undertake to bypass them. They also get case studies that have been used to illustrate many concepts. Some of these include transportation security measures, global selection of suppliers, distribution strategies and network orchestration. Supply chain risk management is also another value-adding tip (Drake, 72). Supply is an important aspect of businesses and should be treated with utmost care. A simple mistake in the supply chain management can cause the collapse of a business. It is important to secure a good source to ensure ultimate production and efficiency of a company that mostly depends on physical raw materials. This source is in terms of raw materials and labor, and should not be compromised for whichever reasons that are not business-related. The author describes an efficient supply chain as one with the least number of goods or raw materials returned to the original manufacturer or supplier. This fact creates the need to mitigate the bullwhip effect. Having been part of a business that failed due to lack of proper supply coordination, I believe that an optimized supply chain should be a primary concern among managers and other executives. It determines the level of competition they can pose to other players in the same industry. The business involved the delivery of leather to a shoe company. We settled for one supplier, but they happened to have some tax issues that forced them to close down after two years of working together. The confusion that followed this abrupt closure led to lack of enough leather to avail to our customer. They threatened to sue us for failing to fulfill our obligation of availing leather within the required time limits. The dependence on one supplier destroyed a good investment and tarnished the image our customer had for us. It would take us a long time to recover the good customer-supplier relationship that previously exceeded. This business taught us that managers should be concerned with the planning of a successful supply chain. This plan is essential because of the intense and diverse operations that are involved in the supply chain. They must be synchronized for maximum efficiency. Moreover, sources must be established in advance (Drake, 42). These sources are providers of the required items in terms of goods or services. Once received, the items are converted into the end product, after which they are delivered to customers or other manufacturers. Going through this book, one notes that the key element to note about the supply chain management is redundancy. A wise manager should have more than one source of raw materials, items or services for their companies. This redundancy ensures that they never lack in resources due to the inability of one supplier to fulfill their duties. It also serves as a cushion against the reception of poor quality items or services. These resources that do not meet required standards are returned to the supplier and another supply option selected immediately from the list of those set aside for redundant sources. This technique should be applied to ensure business continuity. Works cited Drake, M. Global Supply Chain Management. Business Expert Press, New York, NY (2012), ISBN 13: 978- 1- 60649- 276- 5 Read More