Supply Chains and Globalization

Abstract

Globalization is one of the greatest motivators in management structure of supply chains in the world. These changes have been gaining ground in global competition among several companies aiming to establish itself in the world market. The purpose of this paper is to emphasize on the factors and elements for configuration management of supply chains composed of three elements combined, business processes, components and architecture that change according to the changes occurring in the competitive environment. Globalization implies a market economy, inequality, capitalism, changing educational paradigms and demands that humanity needed to model men who inhabit the planet to be rethought in order that life on Earth is guaranteed and that all have the same training conditions both academic and professional. The technological advancement like IT technology, RFID and other technological innovations increases the profits of the organizations and also makes the process of supply chain management easy and stress free.

Introduction4

Literature Review5

Globalization5

Globalization and Supply Chain7

Practices of Supply Chain Management8

Distribution and globalization9

Supply Chain Management Reimbursement11

RFID and Supply Chain Management12

Importance of IT (Information Technology) Systems in SCM14

Conclusion16

References18

Supply Chains and Globalization

Introduction

SCM or Supply Chain Management is the integrated management of the companies involved in the manufacture, distribution and any other activity with the purpose of delivering a product or service to the end customer. Efficient management of SCM avoids redundant functions and optimizes the flow of manufacturing and distribution of products. In a globalized world, the design flow involves production and distribution companies around the world and uses complex logistical processes with delivery set to avoid interruption of production lines for lack of raw materials.

Globalization is, therefore, essentially economic, financial and expressed the immense power of transnational capital, deployed worldwide through the advancement of new and powerful technologies. So the real globalization is always and everywhere, a phenomenon characteristic primarily economic (Mehralian et.al, 2012). The deeper dimension of globalization and negative rests on spectacular global integration of financial markets. Globalization influence supply chain management of the company. IT technology and RFID technology increase the effectiveness of supply chain management.

The concept of SCM is different from “supply chain”. Vendors are available everywhere in the world producing finished products or parts that are input from others. The management of the supply chain strategy that is a company designed to work with these suppliers. For example, define the form of imported parts through the concept of drawback, taking advantage of the incentives legislation for export. This means that two or more companies using the same supply chain can have different results, depend on their SCM strategies.

Literature Review

Many models are proposed for understanding the activities required to manage the movement of material through the productive and organizational processes (Kala, 2013). The activities of the supply chain can be grouped into strategic, tactical and operational. Under global competition, increasingly companies must develop trust and effective supply chains. Companies should maximize the use of their resources, their supply chain and the laws of the countries to develop profitable ...