Question: After you read The Difference Between Managing a Global vs . Domestic Supply Chain is a Matter of DegreeLinks to an external site., you will

After you read The Difference Between Managing a Global vs. Domestic Supply Chain is a Matter of DegreeLinks to an external site., you will be tasked with writing an analysis of the article using the following outline:
Authors View Point - at least one paragraph discussing what is the context in which the author is writing?
Authors Purpose - at least one paragraph discussing why is the author writing the article? Who is the intended audience?
Authors Main Point - at least one paragraph discussing what is the authors main point/thesis?
Authors Conclusions - at least one paragraph discussing what is the authors main conclusion?
Relevance - at least one paragraph discussing in the world today, how accurate and relevant are the authors main points and conclusions?
Utilization - at least one paragraph discussing how can you use what you have read? How can you incorporate what you have learned into an organization? Variables like border crossings and multiple hand-offs make for more uncertainty, but experts say it all comes down to managing information
Truth be told, there are very few solely domestic companies left these days. Businesses are either directly sourcing overseas or their suppliers are; fewer and fewer companies are not selling their goods in international markets. And, even if your strategy is to stay wholly domestic, your competition is coming (or will soon come) from every area of the globe.
"There are very few companies that are not touched by global issues; if not directly, then through their suppliers or customers," says Mike Peters, First V.P., ProLogis Solutions Group. Yossi Sheffi, Director, Center for Transportation and Logistics, MIT, takes the concept one step further. "Even if a company only has domestic suppliers and domestic customers, it must always be analyzing whether it would be better to go overseas. And companies are always subject to global competition, they must be conducting constant analysis of their global competitors," he says.
So, if the focus is global and companies are sourcing, selling or manufacturing overseas, does the domestic supply chain still exist? Or, on the other hand, has formerly domestic components simply become part of a larger, overall global supply chain?
The answer isn't clear cut. While almost everyone agrees that companies must function in a global marketplace, there is far less agreement on how this context translates when it comes to managing the supply chain. Although companies may think globally in scope, when it comes down to actual tactical operations there's a lot of local blending going on.
Sheffi and Peters both agree that there are certain elements that are required to manage any supply chain regardless of whether it's domestic or global. Things like visibility, technology and flexibility are basic ingredients that need to be incorporated seamlessly in order for a supply chain to function efficiently regardless of the length of the chain.
"Technology is crucial. It speeds the supply chain and creates visibility," says Sheffi. He believes that technology is becoming more aligned as standards are coming into place that allow different systems to communicate and share information. This is an issue that companies must address whether they operate in the U.S. or around the world.
Visibility is another key element. "You need to know where the goods are," says Peters. This is particularly critical in order to allow companies to manage their supply chain strategically, identifying various points throughout the supply chain where goods can be held to reduce the risk of delays. And, with capacity issues still a concern in North America, a delay-reduction strategy applies across the board.
Jack Gross, VP & GM International, Schneider Logistics, also suggests that flexibility is critical to the success of the supply chain. Companies need to ensure that both their supply chain and their partners can readily integrate alternate locations should circumstances dictate quick response. For instance, if the goods normally come into the Port of Long Beach, but because of delays, they go to Port of Seattle instead, the supply chain needs to be flexible enough to handle the change at both the domestic and global level. Globally, the destination port needs to be switched, and domestically, the transportation providers must be flexible enough to meet the goods at the alternate location and get them to their ultimate destination.
Technology, visibility and flexibility are all tied to information and this leads to an area increasingly important in supply chain management--the need for upgraded information management. "The movement of goods is not really the challenge, information is," says Keith Goldsmith, Sr. VP, Business Development and Technology, TNT Logistics. Companies operating today are collecting tremendous amounts of data and the trend to move towards point of sale information is resulting in mountains of information bei

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!