Global Supply Chain â€“ Backbone of the New-age Business Model Behind every successful business is a robust logistics and distribution services. The robustness of the distribution system however, is again dependent on the supply chain which is made up of all organizations, people, technology, activities and information and resources involved in transferring a product or service from its origin to destination. The supply chain system forms the main link between the supplier and the customer.
Supply chain solution can be defined as an integrating function of coordinating and collaborating channel partners, supplier, intermediaries, third party service providers and customers into a cohesive and high performing business model. In other words, it includes all logistics activates, manufacturing and also coordinates through marketing, sales, finance and IT functions. Under such circumstances, in a globally bound business environment, the role of the supply chain also reaches a global level. The global supply chain model is a framework built on key business processes that are cross-functional and cross-firm in nature. Each of the business process is managed by a cross-functional team, made up of logisticians, production specialist, as well as professionals from the departments of purchasing, finance, marketing and research and development. Till the time business houses took on a global route, enterprises focused on lean manufacturing principles, just-in-time deliveries with shorter lead times. However, the onset of globalization has increased the complexity of supply lines with longer lead-times and bigger batches. This elongated supply lines have posed challenges for the global enterprises which showcases through the supply-chain management strategies of the enterprises. However, to combat the fierce competition in todayâ€™s market enterprises make use of advances in technology, demand and supply sources, improvements in information availability and creative business designs. Leading service providers and IT giants have created technology platform combined with a number of software solutions that offer enterprises a strong backbone of operating infrastructure. Such high-end technology facilitates global enterprises with an efficient platform which supports business intelligence, customer relationship management and logistics management as well as client reporting in real-time mode. Leveraging on such developments helps the organizations integrate the network assets into a single instance thus easing the global supply chain process while ensuring efficiency in retail distribution across the wider market. There are major differences in supply base management in a global market and single market. The cross-border operations are more complex and greater than in a single country, and the ability to compete in the global environment depends on the level of understanding the subtleties of cross-border trade or global supply chain. Though today's supply chain solutions include both returns management and forward logistics, the robustness of the system is dependent on the right systems, a reliable supply chain provider and efficient and scalable services. Read more about : order fulfillment
Published on Nov 13, 2012
Behind every successful business is a robust logistics and distribution services. The robustness of the distribution system however, is agai...