Although supply-chain management as a concept is moving into its third decade, there is still much to learn and a multitude of challenges to overcome. Starting from early problems such as software communication, to maintaining quality throughout the supply chain, to overcoming the bullwhip effect, globalization is at the heart of many of the current challenges in managing supply chains. Globalization has stretched supply chains, introduced a variety of problems not present in purely domestic supply chains, and raised serious issues of security and economic survival.
Many firms have treated global supply chains as if they were a simple extension of the domestic model. This has caused unexpected problems, including hidden costs, quality problems, the difficulty of managing supply chains on a global basis, and a general backlash against outsourcing. Western industry learned some hard lessons about just-in-time (JIT) and lean processes in the 1980s when it was unprepared for Japanese competition. About the time businesses were learning the lessons, the rules changed again with the introduction of supply-chain management concepts and the rapid growth of globalization.
This book will trace the history of these developments—looking at the things that were done right and should have been done better and examining the problems and some of the solutions for global supply chains in today’s world. Western industry faced a significant challenge from the Japanese in the 1980s and managed to fight back (largely successfully). The current challenge is to succeed in the face of global competition. Good supply-chain management is necessary and critical for winning this competition.
Abstract
When supply-chain management moves into the global arena the problems are profoundly different from those in domestic supply chains. This book will examine the history and background of global supply chains, some of the unique problems faced when managing a global supply chain, and some ways of dealing with these problems. Each chapter ends with suggested action items for the global supply-chain manager.
Keywords
Chain master, China, culture, ethics, global, globalization, insourcing, JIT, international, lean, logistics, operations management, outsourcing, risk management, security, supply-chain management, trade, transportation.