Global Supply Chain Issues

Running head: GLOBAL SUPPLY CHAIN ISSUES
GLOBAL SUPPLY CHAIN ISSUES
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GLOBAL SUPPLY CHAIN ISSUES
Answer of question:
Increased international shipping volumes leads to the increase in the exposure to
the Trade Regulations Violations: The global trade regulations alters often, and balancing
the compliance with the business requirements represents the challenges to most of the
experienced teams of the supply chains. In the situation of the automotive company Audi,
where the marketing and the supply of the cars is done all over the world, the regulations and
the compliance rules affects significantly (Kersten, Blecker and Ri 2015). They are
considered to be not properly prepared for the operating in the global marketplace. With the
threat of the severe penalties for the non-compliance, the compliance department could play
the critical role in the strategy of the supply chain of the company. Microsoft Dynamics GP
could be considered as the accounting software or the ERP software package that could be
used by the organisation for improving the supply chain management and track the delivery
orders of the company using the enhanced methods of distribution, advanced picking,
demand planning and the inventory management. The rule that could be applied is the
weakest link rule that denotes that the strict compliance team at any one location denotes
nothing when there are some gaps in the customs skills in the company at any other locations.
Until, the adoption of the automated solutions is done by the experts of the company, the
business could face the significant issues that could lead to the exposure to the significant risk
(Bode and Wagner 2015).
Major breakdowns in the cross-border shipments: The global nature of the present
business environment world could denote that the businesses should offer the varied product
line for meeting the demands of the customers in the various countries. With the goods being
exported and imported from the various countries, it is of high probability that the companies
remains on the top of the dizzying array of the trade regulations. The sole mistake in the

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GLOBAL SUPPLY CHAIN ISSUES
compliance like the missing of any of the present regionally applicable classification and the
requirements of licensing could mean that the company might face significant dangers in the
delivery of the product to the appropriate location. This resulting delay leads to the
compromising of the complete supply chain and then it also negatively impacts the ground
line. This is major problem in the Toyota corporation. In this organisation, the business
makes several production and the import from the outer countries. The cost of the supply
chain of the company could rise due to the delay of the delivery of the products (Matsuo
2015). The discoveries suggests that the outsourcing is one of the major potential areas of the
opportunity of altering the costs. The SAP SCM could be implemented in the organisation for
reducing the time that is spent in the delivery of the products to the end-consumers. The
smart automotive supply chain could be implemented for practising the complete advantage
of the increased interconnectivity, instrumentation, and the intelligence for reducing the costs
(Chopra and Sodhi 2014). With the utilisation of the capabilities, this majorly maintains the
optimal inventory of the incoming materials, spare parts, finished products and the
accessories that are spread across the distribution centres and several repair shops of the
dealers.
Inability of the keeping up with the modern customs technology: The previous decade is
under the steady progress in application of the technology to the requirements of the customs.
The electronic systems are being implemented for the replacement of the outdated processes
of the customs as the automization grows to be the priority for the trade authorities all across
the world (Das et al. 2016). The modern initiatives implements the various techniques for the
fulfilling of the requirements like the advance fillings of the e-manifest and the innovative
licensing and the documentation requirements. The company BMW was facing this issue in
their management of the integration of the modern supply chain in their company process.
The company is forced to the alteration of the procedure and also migrate to the entirely