Global supply chain design

Global supply chain design

The global supply chain is defined as a dynamic worldwide network, and it takes place when a company buys or uses goods and services from external (Bottani et al.,2019). Supply chain design is defined as a process where organization structure, together with the managers, can supply products to identifythe right stability between stock, transport, and in cost of manufacturing.Designing of the supply chain is used in matching the supply and demand under the uncertainty by positioning effectively managing inventory.One can benefit from using supply chain design because it creates a solution as well as consulting of the supply chain planning from the strategic to the operational level. It helps in delivering answers on various scenarios at a strategic level by including modeling of inbound flows, production as well as delivering inventory and outbound.The aim of the essay is to analyses the perspectives on global supply chain design, evaluating the roles of uncertainty in global supply chains as well as categorizing issues and concerns that are in global sourcing decisions.

The perspectives on global supply chain design

Different views have been developed on the worldwide supply chain design (Bottani et al.,2019). However, this section will describe the background of the study as well as discussing the common question that arises when people provide their different viewpoints on global supply chain design. A common problem that occurs when people talks of the supply chain include:How is supply chain designed best to enable it to be in a position of meeting this tension which has been analyzed in supply chain literature for a long duration of time

In recent years, there has been a rise in linking the design of products, cost of processing, quality, and quantity efficiency measures in the field of manufacturing. Some concepts of designing, manufacturability, designing of assembly, designing of productivity, as well as testing of design, has also emerged..

The underlying motivation of the above concepts has made the cost to be mainly determined through the designing of products(Cohen  & Lee, 2020 ). Therefore, the functionality and the performance are not preferred as sufficient criteria that can be used for designing excellently. Cost and services are used in determining products successfully, as well as making a profit that goes beyond a narrow definition of manufacturing. Considering factors like logistics and the distribution of cost, inventory investment, availability of product customs duties serviceability, and flexibility when dealing with unexpected changes, they are aspects affected by designing the product of its manufacturing process.

The above question shows that to be competitive within the market, a firm needs to reconfigure the value of creating strategies that are done by forcing on competing priorities. The studies used in trade-offs towards make –but the decision and in establishing the link between competitive priorities and motives used in outsourcing, shows that the research supports the trade-off model. There is some instance where the trade-off relationship takes place between price, speed, and flexibility hence encouraging groups of Arcadia to be effective. According to a manufacturing survey organization from the UK, the research shows that at least 35% of the respondence are considered quality hence being the main reason why the production of re-show in the United Kingdom is followed by certainty, deliverability, and the goals of reducing the cost of transportation.

In literature, the relationship that takes place between manufacturing strategy and competitive priorities has already been established (Cohen & Lee, 2020). The research shows that there is a considerable gap between literature where the supply of global chain configures is linked with competing priorities ( Cohen& Lee,2020).

It is also essential to have a more significant understanding of the supply chain network structure. It helps in highlighting literature on global manufacturing, which is used to separate into two dimensions, keeping in consideration that the firm in a network and others emphasize the inclusion of other areas such as in supply manufacturing network. Individuals sites in a production network from different global perspectives, which can’t be neglected. The areas of making a decision can be divided into two, that is configuration and coordination. The existing literature does not provide a full image in terms of configuration and coordination factors that govern the designing of the global supply chain. Also documentary highlights the choices that are involved in network facilities, which overall plan on how the company will be in the position of manufacturing products on a worldly basis to satisfy the demand of customers in the entire world.

Evaluate the role of uncertainty in global supply chains

            The change in supply chains in firms of manufacturing is essential for companies that are called to compete in an economy that is newly globalized. During risk situations, construction is considered to individuate the optimal positioning of the point of penetrating order. Uncertainty aims at defining the best-preferred information of the rules of clients through the supply chain phases.

Supply chain uncertainty takes place when managers give an attempt

Of practicing wrest, which results in increasing the complexity of the network of the supply chain.

Further, there is much interest in areas that are related to supply chain risk. There is a need to develop a better understanding of both uncertainty and risks hence remaining to be part of the pertinent problem in the current competitive market that many new challenges within the current competitive market keep on unfolding in this global and It driven arena. For a better understanding of research supply chain uncertainty, it is a requirement that we first define to enable us to get its meaning in a better way(Ghadge et al.,2020). Uncertainty is believed to have both positive and negative outcomes, for instance, the loss which is associated with natural disaster may lead to problems in the supply chain. However, uncertainty which regards the customer demand may result in high order, which might be better or worse than it was expected.

Therefore it is argued that the term uncertainty in the supply chain is broader, and it can be used in encompassing issues that have sometimes been referred to as the risk banner.

Uncertainty aims at describing the best level of information on the order of the client using several phases of the supply chain such as in engineering, procurement, production as in the distribution sector.

Uncertainty helps in defining the model of system dynamics to access competitiveness, which comes from the positioning of the order using different SC locations. It is used to implement in creating a decision map which is used for identifying possible strategic decision used under different scenarios and in alternatives used for order location within the SC level.

Uncertainty causes traditional supply chain management models to break down. The globalization of business has brought new opportunities inthe industry, although it increased the potential of hidden power, which cause disruptions in the international supply chain.             Uncertainty in the global supply chain leads to models of the traditional supply chain that causes a breakdown. The automotive sector has been recognized this kind of risk as well as taking an explicit action. Currently, more original equipment has been manufactured, which helps in obtaining parts of multiple suppliers(Ghadge et al.,2020). As a result, this has led to an increase in complexity within the automotive supply chain as well as raising a higher risk.

Issues and concerns in global sourcing decisions

Global sourcing is an act of buying raw materials of components that go into the products of the company from the entire world. For instance, the coffee of Starbucks is bought from Colombia and Guatemala. Following are the issues and the concerns of global soucing decision:

Total landed cost: Is it easy to focus more on the lowest unit costs hence assuming that it is the best way to go about(Jabbarzadeh et al.,2018). However, the loss of units is among the completing pieces of the cost of the equation. Other factors that need to be considered are transportation cost, customs and duties cost, services used in brokerage, fees charged in banking, financing, and also in the insurance field. Not forgetting about the additional or unexpected cost that is expected to arise in the course of the business.

Incase customers decide to examine the freight; therefore, there is a need to increase charges of the examination as well as keeping in consideration charges. Delays in the supply chain mostly occur as a result of expediting freight charges to meet the target delivery date; however, it is easier to control if the management can plan for the worst as well as hoping for the best.

Product Quality: In any operating business, product quality is the min thing to be considered; this is because customers prefer products of high quality as well as expecting the services given to them to be of high quality as well. A quality product has consequences over and above the cost of units in the balance sheet. The quality of products requires to be defined to enable suppliers and buyers to be in a position of understanding to make sure that they can come into an agreement. In case a product has an issue, it becomes tough to give an address to the vendor through cultures, time zones, and geographies as compared to the time when they are meeting with the local supplier. When products are of poor quality, they affect everything; they change the rate of return hence making customers dissatisfied (Jabbarzadeh et al.,2018). A significant part of an effective supply chain is to have a quality product to enable customers always to meet their expectations.

Logistic Capability: The quality products sometimes may luck importance if there will be no good market that can be reliable and be available.

There is a need to consider means of transportation both within the country and internationally(Sáenz et al.,2018). This is because some goods need to be transported using airport, seaport which may force any business to pay more charges in case they don’t have means of transportation hence depending on others. Other logistics to be considered is space for stirring the available space; this should be significant consideration because of their safeness, and well as eliminating many losses the business is likely to experience after a loss. There is a need to have a flexible service that provides a faster implement alternate plans in case the major projects or the transportation lane is not available at a particular time.

Location: The location of the business matters a lot. Most of the companies are performing well today because of their area of the site, while others are performing poorly because they are located at a place where it does not fit(Sáenz et al.,2018). When making a decision, there is a need to consider the kind of business conducted, where it is located, and the people who surround a particular area. Canada is believed to be the largest trading partner in the US; the two countries import and export goods amongst themselves. Mexico follows in the second position to exports goods to the USA. The counties and the organization that any country is conducting business which plays a more significant role in making more profit. Therefore it is advisable when making decisions always to consider where the store is located, who the major suppliers are, and what are the primary sources of your business.It ensures that it is an ongoing business that can meet the objectives of a business.

Trade regulations are the rules and the principles that guide people on how to conduct business. Many businesses today are working as a result of following rules and regulations made. In contrast, others have failed and stopped working as a result of being able to follow the rules of business. For many years there have been quota restrictions in respect of textile imports from China. However, the restrictions were removed in January. 2015hence leaving China country to trend towards the sourcing for up to 50% of the market share of textiles. Before making any decision, trade incentives must be carefully evaluated. There is a need also for business to familiarize itself with the documentation requirements of US customs clearance.

Financial considerations: Buying and selling of products and services will not be complete of the business will not have sufficient funds which support its operation. Economics is meant to ensure that there is a continuous operation of a business; it gives support to the company at the time when it seems to be making a loss as well as ensuring that there are the best products that customers always desire to get. Therefore when making a decision, it is essential to put into consideration the issues of finance. To have the best place where they can get a loan in case their business seems to go down as well as selecting people who can correctly handle business finance well without practicing any corruption that may hinder the performance of the company.

Communication: Communicating plays a more significant role when making a decision; for instance, you need to communicate from someone to know what has been shipped as well as knowing what is transported using the airport. When inaccurate product information is provided, it means that there is the possibility of not getting the products and even the worse off to get the wrong products that one did not order(Tyagi &Verma, 2017).

There is a need to identify the right person to be passing the write information to avoid losses of items and deal with things before they reach the owner. Also, when making the right decision, one may consider using Email, internet, and phone calls to communicate with the supplier on supply chain efficiency. Whether one is new to importing or is finding sources from a new region, he should remember that he must choose the right means of communication to ensures that his goods arise on time as well as being able to satisfy their customers. Once the right decision is made, there is a more significant opportunity of enjoying the profits made by the organization in the global market.

Accessing the latest technology: There is a need for the organization when making the right decision. Always consider the newest technology as one of the essential things in the organization (Tyagi & Verma,2017). Things are changing every day; new ideas are trending time after time; therefore, when the organization can access the technology. It enables organizations why other organizations are doing better than them as well as trying copy strategies used by other performing organizations.Consideration of supplier of the products: For the management to ensures that there is the continuation of the business operation, it must keep in consideration suppliers who supply quality and quantity products to them. They should set aside some finance to always pay them for their products as a way of encouraging them to continue providing more and more products. Therefore the management responsible should ensure that they can work well with theirsupplier, their funds are paid in them as well as giving them feedback for the [products the suppliers provide them.

Safeness and a better working condition: Security is a significant aspect of the organization. The organization cannot perfume well when they have no security or at the time when they feel that their lives are in danger( Tyagi& Verma,2017). Therefore when management is making decisions, they should keep in mind that the safeness of their employees, customers, and anyone around the organization is safe to ensure that they can meet the goals and objectives of the organization.

In conclusion, global supply chain design allows many organizations to be conducted worldwide where the organization is able to purchase or use goods and services from many countries in the entire world. People have a different perspective on global supply chain design, which leads to many questions. However, one major problem that arises to most people is,How is supply chain designed best to enable it to be in a position of meeting this tension, which has been analyzed in supply chain literature for a long duration of time. Finally, when making the global sourcing decisions, the management is advised to make the right decision because a wrong decision will always negatively affect business hence making its performance to be reduced. Among the essential things to consider are: cost, communication,Total landed cost, and quality of products, among others(Tyagi & Verma,2017). Generally, the performance of an organization is mostly determined by how management manages an organization.

Reference

Bottani, E., Murino, T., Schiavo, M., & Akkerman, R. (2019). Resilient food supply chain design: Modellingframework and metaheuristic solution approach. Computers &    Industrial Engineering, 135, 177-       198.

Cohen, M. A., & Lee, H. L. (2020). Designing the right global supply chain            network. Manufacturing &            Service Operations Management.

Ghadge, A., Wurtmann, H., & Seuring, S. (2020). Managing climate change risks in global supply chains:            a review and research agenda. International Journal of Production     Research, 58(1), 44-64.

Jabbarzadeh, A., Fahimnia, B., & Sabouhi, F. (2018). Resilient and sustainable supply chain          design: sustainability analysis under disruption risks. International Journal of Production   Research, 56(17), 5945-5968.

Sáenz, M. J., Revilla, E., & Acero, B. (2018). Aligning supply chain design for boosting resilience. Business Horizons, 61(3), 443-452.

Tyagi, S., & Verma, A. (2017). Interactive, adaptive particle swarm optimization for optimal         global supply            chain design. International Journal of Integrated Supply       Management, 11(1), 1-23.