Global Supply Chain Managment

Global supply chain management has emerged as a major topic in the age of globalization and now it is sitting at the heart of the whole system. But you might be asking yourself, so what exactly is supply chain management and how can it affect my company?

Are Your Supply Chain Management Employees Thinking Domestic or Global?

Global supply chain management has emerged as a major topic in the age of globalization and now it is sitting at the heart of the whole system. But you might be asking yourself, so what exactly is supply chain management and how can it affect my company?

Let's understand what it is first.

From the production house the product starts it journey and travels through to the supplier, distributor, retailer and ends at the hands of the consumer. This whole journey is a well managed mechanism and controlled by supply chain management. When it goes global and the journey of the product covers multiple countries, then it is called global supply chain management.

With globalization, business has become more complex. Global supply chain management not only mobilizes products but also the entire value added chain, in which financial activities and sharing of information are also included.

Big companies have many hubs around the world. Raw materials, finished products, finance and other pertinent information travel from one hub to the next. Global supply chain management is the basis of the whole operation.

The cost of production and profitability is dependent on the global supply chain as well as how well employees throughout the company are trained for such fast-paced tasks.

Global supply chain management has two major components:

1. International movement of products and raw materials, title transformation, payments, controlling risk factors 2. In parallel with the above activities, an information network is hard at work. Information sharing and collecting is very important to run an effective global supply chain management system

The efficiency of the global supply chain management of any company can make everything look easy. However in order to attain those efficiencies your employees need to understand the fundamentals. The most basic fundamental is that supply chain management is not just domestic anymore nor is it just for large corporations. Small and midsize companies have to be global supply chain management savvy if they wish to survive.

The growth and development of a company is largely dependent on the global supply chain management system and its most important asset - employees.

Are your employees top-notch when it comes to global supply chain skills? If you can’t answer yes then you better start thinking about training because your competitors are.

So, what type of training is needed company wide?

First, introduce employees to global supply chain management. Don't assume they grasp the concept. With increased globalization and offshore sourcing, global supply chain management is becoming an important issue for many businesses. So, make sure the foundation is laid.

Second, employees should learn the underlying factors behind the trend to reducing the cost of procurement and decreasing the risks related to purchasing activities.

Third, they should understand the following principles: a) competition is no longer among independent companies but instead about connected supply chains b) supply chain competition is global c) winners will be companies that best integrate and achieve commitment to supply chain excellence among diverse organizations.

Copyright © 2007 Sherry Harris

---

Sherry Harris is the President and CEO of online career training school, Malibu Institute. For more information on master certificate courses and programs offered, go to: www.MalibuInstitute.com

---

Expand your market share online. Internet marketing services and business solutions. Ask for your free internet marketing analysis today.

Commercial Loan and Business Financing

An overview of several serious but relatively unknown commercial loan and business financing problems. The difficulties apply to commercial real estate investment property loans, business cash advance situations and business opportunity financing.

Commercial Loan and Business Financing - Unusual Problems

There are a surprising number of problems which should be anticipated when arranging a commercial loan. Several of these potential business financing difficulties are relatively unknown by most borrowers. These issues are relevant for commercial real estate financing, business opportunity investment loans and business cash advance circumstances, although not all factors will apply to each situation.

Commercial Loan Advisory Reports -

We have published separate commercial loan advisory reports which provide a comprehensive discussion of the major problems likely to be encountered in typical business financing and commercial real estate loan circumstances. For example, one report focuses on common business opportunity investment financing difficulties. In another report, we discussed the obstacles usually experienced with SBA loan refinancing.

The Black Ice Analogy: Unseen Business Financing Problems -

The focus in this article is to highlight several of the more obscure commercial loan problems. We consider these often hidden business financing difficulties to be of critical importance to a commercial borrower. Drivers familiar with an extremely hazardous road condition known as black ice (in which ice is largely invisible on the road) will readily appreciate that unknown and unseen business finance problems can be particularly hazardous to the financial health of a business.

Online Business Finance Applications -

The first relatively unknown business financing problem involves the increasing use of internet technology by commercial lenders. Many commercial loan sites encourage borrowers to submit an online application. This is not a prudent way for a business owner to proceed with their commercial financing.

It is important that business owners understand that it is not in their best interest to submit an online business financing application. For a more detailed understanding of why an online commercial loan application is inadvisable and how to proceed in a search for viable financing, borrowers should review the report entitled How and Why to Avoid the Online Business Loan Application Trap.

Recall Provisions for a Commercial Mortgage -

The next obscure but nevertheless serious business financing problem to anticipate involves the use of loan recall terms by a lender. Commercial loan recall covenants mean that the lender can force the borrower to repay early by calling the loan before it would normally expire. Many traditional commercial lenders routinely place recall clauses in their commercial mortgage conditions, but this potential concern is not applicable to all borrowers since some financing agreements will not allow a loan recall possibility.

The circumstances which can cause a recall will vary but can commonly include periodic lender review of financial statements, tax returns and credit history. If prescribed levels of income, credit scores or other benchmarks are not present, then the lender will typically notify the commercial borrower that they must pay off the loan within a 30-90 day period.

With a commercial loan recall, borrowers will need to refinance quickly. Prudent borrowers will exclude lenders that require recall agreements when evaluating business financing options. For commercial borrowers who have recall provisions in their current business loan agreement, it will be equally wise to consider refinancing their commercial mortgage before a recall occurs so that refinancing is accomplished according to the preferred timetable of the business owner.

Balloon Payments and Short-term Business Loans -

Another often overlooked commercial financing problem is the increasing emphasis on short-term financing by many commercial lenders. How long is a long-term commercial loan? Most business financing experts will advise a minimum loan period varying from 10 years to 30 years depending on the specific circumstances of the borrower. Unfortunately many business lenders often consider three years as the maximum period before a balloon payment will be due for a commercial mortgage.

With a balloon payment condition, a business owner will be required to either pay the remaining loan balance or refinance. This kind of loan is a short-term commercial loan instead of long-term and should be avoided whenever feasible. Longer-term business financing will often be the critical difference that facilitates a successful business investment because new financing will not be required for many years and business loan payments will usually be reduced.

Inexperienced Commercial Real Estate Loan Lenders and Advisers -

The final example of a problem that is not obvious to most commercial borrowers involves a shortage of business loan experts providing candid advice to business owners. The process of business investing and business financing has become more specialized during the past few years. There have been some recent real estate and business investment developments that have made this process even more complicated. The current turmoil in residential real estate investment property has resulted in an increasing number of residential lenders and advisers attempting to become active in commercial loan activities.

This is an almost impossible transition for most residential lenders and advisers. There are over 25 critical differences between residential and commercial property investing. As a result, these new and inexperienced commercial financing advisers frequently provide woefully inadequate advice and potentially disastrous business financing for their clients.

How to Avoid These and Other Commercial Financing Problems -

What can commercial borrowers do to avoid a similar fate? A pragmatic approach is to explore additional resources that will facilitate a better understanding of complex business finance issues. The Commercial Real Estate Investment Property Loan and Business Finance Guide is one example of business financing resources that will provide strategies and solutions for many problematic commercial loan circumstances.

---

Stephen Bush and AEX Commercial Financing Group provide business finance - commercial real estate loan help and AEX Investment Commercial Loan - Commercial Mortgage Reports.

---

Now is the time to invest in Internet marketing solutions. Get your business discovered online so you can start gaining new customers and more sales today. Contact us for an online marketing and website evaluation.