[2] Successful management of a global supply chain also requires complying with various international regulations set by a variety of non-governmental organizations (e.g.
Governmental and non-governmental organizations play a key role in the field as they create and enforce laws or regulations which companies must abide by.
[3] These regulatory policies often regulate social issues that pertain to the implementation and operation of a global supply chain (e.g. labour, environmental, etc.).
Global logistics and supply chain management are critical components of international business operations, ensuring the seamless flow of goods, information, and services across borders.
This field involves the strategic planning, coordination, and optimization of all activities related to sourcing, production, distribution, and logistics on a global scale.
This includes managing transportation methods, customs regulations, and trade compliance to ensure timely and cost-effective delivery.
International trade agreements and regulations, such as Incoterms and customs duties, play a crucial role in shaping global logistics strategies.
Supply chain management in a global context extends beyond logistics and encompasses the entire flow of products and information from suppliers to end customers.
Effective supply chain management helps reduce lead times, minimize inventory costs, and enhance overall customer satisfaction.
Businesses utilize advanced software, data analytics, and IoT (Internet of Things) solutions to track shipments, manage inventory, and forecast demand accurately.
[5] There are four common and critical challenges that managers face when attempting to design and implement a marketing strategy that best relates to customer values.
[5] The global market is becoming increasingly prevalent which companies are taking advantage of, therefore the challenge of attempting to deliver values in a country/region that has never been exposed to a marketplace such as this before arises.
When managing a global supply chain, it is important to place emphasis on logistics performance as there has been an increase in business-to-business international marketing.
[6] Logistics is inherently difficult and complex for a global supply chain as it deals with trade regulations, shipping distances, and cross-currency issues.
Companies and/or organizations who place an emphasis on logistics management can find themselves with a serious competitive advantage as it has a clear visible impact on customers.
[6] Focusing on customer preferences when implementing and managing a companies logistic services has proven to provide the organization with several benefits.
[8] Notable companies that provide supply management services include Oracle, Epicor, Infor, NetSuite and IBM.
[10] Closs and Mollenkopf's "21st-century logistics framework" is a global supply-chain management theory that was developed at Michigan State University and was introduced to the business world in 1999.
The ability to develop a corporate culture or common vision that create a shared responsibility is defined as strategic alignment.
Role specificity refers to the ability to clearly define leadership and establish a set of shared and individual responsibilities.
The 21st-century logistics framework allows managers to identify and implement the most important underlying capabilities that are encompassed in the six business competencies.
The framework gives managers the freedom to decide what they believe to be the most important capabilities that need to be implemented to run a successful global supply chain.
[12] The theory states that to implement and operate a successful global supply chain, a manager must understand and use these components.
If a manager follows the recommendations made by this theory, then they will have implemented a proper global supply chain that focuses on human collaboration which in turn will yield better results.
These instruments include but are not limited to: taxation, financial incentives, regulation, liberalization, infrastructure, land use planning, and advice and exhortation.
The United Nations plays a big role in designing and implementing international regulations that have huge impacts on the operation and management of global supply chains.
They have published two guides which illustrate how businesses can implement the ten principles throughout their supply chains and integrate sustainability.
Common supply side risks include the fact that it takes a long time to receive products from around the world, and that suppliers may not necessarily operate to the same quality standards.
Since customer demand changes so frequently it is tough for managers to forecast what is needed for the next month which creates the risk of running out of stock.