Global Supply Chain- Efficiently Catering a Wider Customer Base
Globalization has paved way for the growth of enterprises across geographies and with a wider customer base. To meet the ever changing demands of the large customer base, the global enterprises opt for offshore production, development and services. With the success of every business dependent on its logistics and distribution service, entering new markets has resulted in the lengthening of the supply chain.
Wikipedia defines supply chain as “a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.” The supply chain activities helps enterprises to deliver the raw materials, components or finished product to the customer. However, with increased globalization and offshore sourcing taking the business into new markets, management of the supply chain becomes a critical factor. Like traditional supply chain management, the global supply chain also aim to reduce costs of procurement and decrease the risks involved in purchasing activities. However, the difference lies in the fact that the global supply chain management involves the needs and interests of the worldwide customers and suppliers rather than being locally oriented.
The organizations which were earlier focused on bare manufacturing principles for just-in-time deliveries and shorter lead times were now faced with complexity of supply lines, longer lead times and bigger batches as a result of globalization. The challenges posed by the elongated supply lines were seen through the changes in the supply chain solutions and management strategies of the global enterprises. Further, to face the challenges and combat the competition in today’s market, enterprises make use of technological innovations and advances in demand and supply sources and availability of information.
The Global Supply Chain Survey conducted this year by PwC showcases that the leaders in the industry are not only customizing their supply chain but are also investing in next generation tools. The supply chain solutions for today's global markets will enable a fast and efficient supply chain system that will also cater for reverse logistics with used products re-entering the supply chain at any point with a recyclable residual value. The new age global supply chain which is built on the framework of key business process is managed by a cross-functional team.
The leading service providers offer their clients a technology platform that supports business intelligence, customer relationship management, logistics, commerce and financial management along with real-time client reporting. By leveraging on such integrated network the enterprises can be assured of consistency and precision in their global supply chains.
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