Write your own essay regarding the Supply Chain Management and trading system. Indicate pros and cons of worldwide trading, globalization of Supply Chain Management and possible innovations in the sphere of management. Use the example in the attached document as an exhibit.
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CASE #8 ESSAY
[Assigned on 5/19/20. Execute before 5/22/20 12 PM ET NOON]
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CASE #8 ESSAY
Technology has increased rapidly in the past two decades. This rapid technological
advancement has provided organizations an opportunity to participate in an international
marketplace. The international marketplace is portrayed by intense pressure and competition to
drive cost down. The pure transactional way of sourcing materials is not realistic in the current
modern era. Organizations should look for ways to restructure the ordering process and focus on
their main competencies to sustain a competitive edge in the business market. This is only
possible through the development of a strategic sourcing that would help the organizations in
reducing their material and procurement costs. The shifts in economic trends and global
expansion of businesses have augmented the intricacy of several supply chains, which have
resulted in increased demand for successful supply chain management in current marketplace.
Markets have become more globalized and organizations are affected by international trade
either directly through their customers and supply chain or indirectly through the competitive
strategies used by their industry rivals. Many organizations have attempted to develop
partnerships or alliances with other supply chain members located in foreign countries, so that
they could bypass the global business barriers created through the government policies, and gain
access to foreign markets by managing the market risks.
Discussion & Analysis
The rising level of foreign direct investment in recent years is the proof of this attempt by
the organizations. The trend toward economic globalization has made alliances important for
corporate strategy, since globalization drove the convergence of customer preferences and needs.
The high cost of speedy technological changes made it impossible for a firm to offer customers
the best products at the lowest price (Baldwin, 2013). Additionally, sharing huge gaining
presence and fixed costs in foreign markets were also claimed as reasons for global alliances.
These alliances have helped firms in elimination of duplicated research efforts and control
uncertainty in competitive environment. In addition, alliances could also stimulate more research
and development investment on both sides. The benefits of global alliance ranged from lowering
risk & cost of high tech product development and gaining economies of scale, to reduction in
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transit time of products to market. Increased innovation, flexibility, better quality, strategic
advantage, and economic necessity were also given as the benefits of global alliances. In the
current, competitive business setting and global economy, organizations are highly
recommended to actively monitor and manage their supply chain, because the suppliers can
cause serious disruptions their operations otherwise (Seuring, 2013).
During 90s, the trends such as just-in-time systems, supply base reduction, globalization
and lean supply chain networks have inspired the supply chain leaders to put more emphasis on
cost reduction and efficiency in their supply chains’ design, along with removal of non-value-
added activities and slack resources in order to minimize the costs of production. In the
meantime, the emergent role of global supply chains helped in bringing unification among the
manufacturers and suppliers worldwide, which led to higher dependency among the
organizations dealing in the supply chain and a higher level of supply chain complexity. Global
production has undergone a radical evolution during the past two decades (Baldwin, 2013).
Improvements in information and communications technology (ICT) along with World Trade
Organization’s push for low or no trade barriers have helped in emergence of fragmented value
chains in world trade, where production is no longer managed within one country but is broken
up and dispersed worldwide (Elms & Low, 2013). Furthermore, the dispersion and
reorganization of production processes imply that each production task is now situated in the
location with the utmost comparative advantage. Through production processes sub-divided into
several stages all over the world, several countries have became involved in production networks
that uses several intermediate inputs to create a final good to consumers.
The supply chain experts have started to focus on developing and improving supply chain
strategy, planning, and operations to enhance flexibility and service quality. Supply chain
managers are focusing on reducing the cost of the supply chain process to become more
competitive and to deliver the best value to the end users. Nonetheless, managing supply chains
in a turbulent and competitive market is challenging, due to unexpected circumstances. The
frequent occurrences of labor disputes, political changes within the areas of operation and of the
supply chain and natural disasters are the most critical risks that supply chain managers must
minimize and control. Supply chain managers should help the organizations in improving their
efficiency of informational, physical and financial flows, when there is a possibility for joint
problem-solving across supply chain partners to execute best practices (Seuring, 2013).
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With augmented proliferation of supply chain and the liberalization of cross border
transactions since the 90s, many countries have quickly embedded into the global production
networks. Highly institutionalized regulatory frameworks have helped the countries in improving
their sense of confidence in their economy, which have also led them to attract much more
investors then they were able to attract in previously. Businesses that are operating under
accountable and transparent countries might have greater chances of business sentiment and
higher trust in the system as compare to the countries that have corrupt regimes.
Supply chain management becomes increasingly complex when organizational operations
in the delivery of products are interrupted. Supply chain interruption can have poor impact on
sales and it can even push up the cost of transportation. Managers, who are able to reduce and
manage supply chain risks are able to enhance the company’s competitive position more and can
produce higher returns and business growth. To reduce uncertainties from the supply chain,
managers need to consider risk-adjusted methods keeping in view the exact design of supply
chain, as it will improve fundamental areas in the downstream and upstream of the chain in both
domestic and global trade.
Write your own essay regarding the Supply Chain Management and trading system.
Indicate pros and cons of worldwide trading, globalization of Supply Chain Management and
possible innovations in the sphere of management. Use the example above as an exhibit.
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Baldwin, R. (2013). Trade and industrialization after globalization’s second unbundling: how
building and joining a supply chain are different and why it matters. In Globalization in
an age of crisis: Multilateral economic cooperation in the twenty-first century (pp. 165-
212). University of Chicago Press. Retrieved from:
Elms, D. K., & Low, P. (Eds.). (2013). Global value chains in a changing world. Geneva: World
Trade Organization. Retrieved from:
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management.
Decision support systems, 54(4), 1513-1520. Retrieved from: