Role of Supply Chain Management in International Business – Summary
This paper has included role of supply chain management in international business. Supply chain management is the process of managing movement of raw material in the organization. Supply chain practices are not only important in local businesses but also in global businesses. Role of supply chain in global businesses is more crucial. This is the reason why this topic has selected. Global businesses are now facing many issues related to the management of supply chain. These issues are profitability, cost, personalization etc. Supply chain issues in global perspective should be controlled for better performance of businesses at global level. Supply chain can provide role of competitive advantage in the organization.
By effectively managing supply chain, operations efficiency and profitability can be improved. Functions of supply chain in global businesses include inventory management, distribution management, financial management, channel management, transportation management etc. Global businesses can achieve strategic fit in supply chain management by effectively managing all these areas. Planning and sourcing is one of important phase in supply chain management. Other phases in supply chain management include making as well as delivering. Lean and agile supply chain can be sued by companies in order to make their supply chain more efficient and effective (Kouvelis, Dong, Boyabatli, & Li, 2011).
Combination of agile and lean supply chain can also be used that is called hybrid supply chain. It can resolve supply chain issues in global businesses. Information technology is also playing important role in managing supply chain effectively. One of important advantage that can be achieved by eliminating challenges is cost benefits. International businesses can take benefits from supply chain management and enjoy comparative advantage as well (Sodhi, Son, & Tang, 2011).
Function of supply chain management
- Inventory management
- Channel management
- Distribution management
- Supplier management
- payment management
- Channel management
- Transportation management
Supply chain performance drivers
Challenges in global supply chain
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