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Sample Paper on Managing Global Sources

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Sample Paper on Managing Global Sources

The article talks about the importance of global sources in promoting efficiency for different nations. In 2008 alone, imports led to an over 17% positive generation of GDP to the country’s economy. Global supply chains supported by globalization and increased technological advances increases information availability. Nations are able to choose global supply chains which offer the most convenience in terms of quality, price and delivery. Global supply chain professionals have called for a more careful evaluation of current global supply chains. The cost of a supply chain might be affect by a natural disaster, political instability and economic crises. Companies that use global sourcing for their supply chains should take the factors into consideration before making orders for their products (Jain, Netessine & Girota, 2011).

Different studies have been carried out on the impact of the difference between the numbers of suppliers that a business keeps. While some businesses stress on the importance of keeping a few selected suppliers, other businesses talk of the need for diversification. Different companies have different policies and preferences which is highly determined by the management. Advanced global supply chains have been found to have a reduced cost effect on the money that organizations spend. Global sourcing contributes to high levels of competition and cuts down on costs and operations for firms. However, the negative effects that might result from global sourcing are likely to be experienced in a proportionate high margin in case of a bullwhip effect. A delay in orders might result in a difficult time convincing clients to retain their orders and have their products delivered as soon as the global supply chain materials get to their destination. However, the benefits of global supply chain and the effects on operations management outweigh the negative effects (Jain, Netessine & Girota, 2011).

References

Jain, N., Netessine, S. & Girota, K. (2011). Managing Global Sourcing: Inventory Performance.

Insead Business School. Retrieved November 12, 2014 from

 

 

 

 

 

 

 

 

 

 

 

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