International business is impossible without proper supply chain networks. Global logistics are critical towards delivering quality products to different consumers. The term supply chain “refers to the processes involved in the distribution of different commodities” (Done, 2011, p. 3). Businesspeople should therefore use the best practices in order to have convenient supply chains. They should also be aware of the major risks affecting their supply chains.
Several factors dictate the success of every global supply chain. Some of these factors include global market forces, business strategies, development chains, and risks (Done, 2011). Manufacturers, retailers, suppliers, decision-makers, and retailers will always be part of different supply chains (Konecka, 2010). This essay describes the risks, global market forces, supply development chains (SDCs), and strategies from the perspective of a supplier.
Supplier: Aspects of a Supply Chain
Global Market Forces
Supply Chain Management (SCM) has become a critical practice for many suppliers. This development has emerged due to the continued wave of globalization. Suppliers are critical stakeholders in different supply chains. Suppliers can also establish appropriate supply chains in order to deliver quality commodities to their clients. A supplier can produce specific commodities and deliver them to different customers in every part of the world.
However, some global market forces dictate the success of every supply chain (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008). For instance, competition compels suppliers to identify new business partners. This global market force also compels suppliers to improve their processes in order to emerge successful (Konecka, 2010). Modern technologies are forcing many suppliers to embrace the best practices. Such technologies can be used to produce quality commodities in order to attract more customers.
Modern technologies can also be used to improve the speed of delivery. The emergence of new markets is also forcing many suppliers to redesign their distribution chains. Modern communication technologies “are changing the manner in which customers acquire different products” (Done, 2011, p. 17). Suppliers should therefore be aware of these global market forces in order to remain competitive.
Risks
Different players in the supply chain encounter numerous risks. Integrated supply chains bring together different players such as suppliers, customers, manufacturers, and distributors. Suppliers encounter numerous risks throughout their supply chains. For instance, suppliers are expected to quality products to different buyers.
This practice will ensure such suppliers remain competitive. Such “supply chains encounter different risks such as security problems, environmental compliance requirements, natural disasters, and disruptions” (Konecka, 2010, p. 27). These risks depend on the nature of commodities marketed by the supplier. Changes in economics will also “affect the profitability of the supplier” (Done, 2011, p. 5).
Suppliers “operating complex global chains face risks such as cultural behaviors, global customers, port congestions, economic instabilities, and foreign regulations” (Naslund & Williamson, 2010, p. 17).
Suppliers should therefore identify the right buyers in order to deal with every risk. A proper SCM will ensure every process is documented properly. The strategy is essential towards managing risk. Suppliers can also encourage their business partners to incur some logistical costs. This approach will reduce the projected risks.
Development Chain
Supply Chain Development (SCD) is “a powerful strategy that seeks to improve the processes undertaken by different businesspeople” (Felea & Albastroiu, 2013, p. 81). The important goal is to ensure the targeted supply chain remains competitive. Suppliers should focus on new technologies in order to improve their supply chains. This practice will address most of the above risks. Development chain is a powerful process that results in competitiveness. Suppliers should liaise with different partners in order to achieve the best outcomes.
Supply Chain
Suppliers should have adequate resources in order to achieve the best results. They should have the right people, activities, and resources. Suppliers should ensure every commodity delivers the required quality. Many suppliers tend to have several customers. A proper SCM will ensure every logistical process is executed properly. The supplier can use proper logistical processes in order to deliver quality commodities to the targeted customers.
Suppliers should “use appropriate resources in order to deliver quality commodities to the targeted customers” (Felea & Albastroiu, 2013, p. 82). A typical supply chain for a supplier seeks to deliver the produced materials to the right customers. Suppliers should also have proper mechanisms to procure raw materials (Felea & Albastroiu, 2013). The supplier will then deliver the targeted products to different business partners.
Strategies
Suppliers should use different strategies in order to have successful businesses. To begin with, suppliers should embrace the concept of operational excellence. This approach will ensure every activity is done in a professional manner. Individuals “involved in the supply chain should have the right competencies” (Naslund & Williamson, 2010, p. 19). Such skills will make it easier for them to deliver quality products to the targeted customers.
Suppliers should also embrace the use of modern technologies. This strategy improves the speed of delivery. Suppliers should also comply with different regulations. This strategy is critical towards having a successful supply chain process. Suppliers should also use proper SCM strategies in order to achieve their potentials.
Reference List
Done, A. (2011). Supply Chain Knowledge Management: A Conceptual Framework. Working Paper, 1(1), 1-23.
Felea, M., & Albastroiu, I. (2013). Defining the Concept of Supply Chain Management and its Relevance to Romanian Academics and Practitioners. Amfiteatru Economic, 1(1), 74-88.
Konecka, S. (2010). Lean and Agile Supply Chain Management Concepts in the Aspect of Risk Management. Electronic Scientific Journal of Logistics, 6(3), 23-31.
Naslund, D., & Williamson, S. (2010). What is Management in Supply Chain Management: A Critical Review of Definitions, Frameworks and Terminology. Journal of Management Policy and Practice, 11(4), 11-28.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain. New York, NY: McGraw Hill.