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

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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

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