Monday, 26 May 2014

How global supply chain can respond to global challenges by using common approaches

When it comes to surviving the global supply chain it is necessary to work collaboratively. Joining forces together to achieve the common goal makes the challenges less daunting. When facing the global challenges there are obvious reasons supporting the use of collaboration. 
  • Sharing the resources – when two or more firms join forces they are able to make use of the complementary resources and avoid duplication of the more expensive resources such as the equipment, services and maintenance facilities that can be a drain on capital. Other resources including knowledge and intellectual resources that can be extremely valuable and beneficial.
  • Achieving synergy – synergy is when two or more things join together and come up with a result that wouldn’t be possible without the collaboration. Synergy in a business collaboration results in adding value to each side that couldn’t have been achieved if working separately.
  • Sharing risk – Negative impact of the risks from the supply chain can be reduced thanks to the sharing.
  • Innovation – blending experience, knowhow and resources helps collaborative businesses come up with new, innovative ideas.
Supply Chain Integration is required in order to spread the global supply chain over the rest of the world. This is when internal and external coordination are shared between members, using high visibility and short lead times with high quality products. This is a common supply chain approach that is able to withstand the challenges.

Divergent Product Portfolio is a strategy that follows the old saying ‘don’t put all your eggs in one basket.”. With divergent product portfolios it is easier to satisfy the demands of the market on a global scale.

Blue Ocean Strategy is when the head on competition is no longer competed against; instead they work together and reach the market without battling it out. Instead of focusing on the competition learn the market and find your own place in the uncontested market place.

World Class Excellence should be the goal of all businesses when using the global supply chain. The business should be performing at a global level and devised to stand the test of time by excelling in quality, productivity, cost effectiveness and efficiency along with excellent customer services.

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