All companies utilize global supply chain management strategy in one form or another. Some firms participate in global sourcing when they need to grow their supply bases, develop procurement options, or diversify their products and services portfolio through imports from foreign countries. Many successful companies are also looking to expand the market share for their products through exports sales or manufacture their products overseas and, as a result, formulate their global location plans. All these activities would not be possible without a strong global supply chain strategy. While international expansion creates competitive advantage and lucrative opportunities for any company, these activities also expose firms to additional risks, including international trade barriers, foreign currencies fluctuations, economic, political, and cultural differences, and multiple “red tapes” created by foreign governments, as you learned last week in Chapter 2. Chapter 11 this week adds to that knowledge. If not properly mitigated, these risks may significantly hinder the bottom line and the overall reputation of the company.
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The Global Supply Chain Management paper
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