Relations of Power of Actors in Global Supply Chain

Relations of Power of Actors in Global Supply Chain

Introduction

Global supply chains have been a major phenomenon in the international operations of organizations. It is a field that is gaining prominence on a rapid basis since it is the pre requisite of an organization's successful expansion towards foreign territories. Many global organizations have certain issues associated with logistics, suppliers and material flow among countries since the operations are of a globalized nature (Baldwin, 2012).

Discussion

Global organizations have to focus extensively on each intricate element of their supply chain so that goods are delivered on time and possess top most quality. There is a high significance of the nature of ownership and size of industry in deciding about the system of global supply chain to be adopted. It looks at the strategic locations of suppliers and manufacturers and incorporates the intricate elements in an effective global supply chain. Global supply chains have been a familiar part of the international business landscape for decades (Cox, 1999).

The conceptual approaches to global supply chain offer us a variety of information regarding the nature of power enjoyed by different actors in the supply chain industry. We would take a look at the extent of description provided by the conceptual approaches to global supply chain in addressing the nature of roles played by different actors of global supply chain (Cox, 1999). There is a huge role of power enjoyed by different actors in performing their supply chain activities and thus their nature of power enhances to a great extent with the application of global supply chain.

Global Supply Chain

The concept of value chain presented by Porter gives us valuable insights on the role of global supply chain. Global supply chain is discussed extensively in the context of value chain presented by porter. The concept of value chain by Porter forms an important type of conceptual approach pertaining to global supply chain management. We would be unable to ascertain the nature of power enjoyed by different actors in the process of global supply chain, if we do not take into account the diverse activities an organization performs (Cox, 1999).

It is very necessary to analyze the value chains of organizations under analysis in order to not only ascertain their core competitive advantage as well as looking to ascertain the nature of power enjoyed by dominant actors of global supply chain. The main actors in a global supply chain revolve around manufacturers, suppliers, logistics and warehousing.

Thus, we can easily decide about the nature of power enjoyed by these actors by carefully analyzing the value chains of organizations under analysis. Global Supply chain is a potent tool in ascertaining the nature of power enjoyed by different actors since the nature of power plays a huge role in assisting them for performing their overall tasks and duties (Gereffi & Lee, 2012).

The make or buy decision for organizations plays a very important role in deciding about the nature of power ...