Global Supply Chain Management Impact on Organizational Performance

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RAJ SUMMARIZING TASK
IMPACT OF SUCCESSFUL GLOBAL SUPPLY
CHAIN

Table of Contents
SUMMARY................................................................................................................................2
REFERENCING...........................................................................................................................8
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SUMMARY
GLOBAL SUPPLY CHAIN MANAGEMENT IMPACT
The supply chain management can be defined as the different activities which are involved
in the production of the goods and they are undertaken till the raw products are converted
into the finished goods and sent to the actual users of the products. In this process of supply
chain management, there are also activities involved such as the information exchange
between the organizations and customers, between different businesses and that includes
the two-way movement of information and many processes (Christopher, 2016). There is
also the impact of GSCM on organizational performance in both directions as well as indirect
ways. Many tasks are commenced through business in their GSCM and help in bringing
effectiveness to the organization. The activities are such as information sharing, goods
outsourcing, partnership with suppliers and continuous flow of the process.
GSCM aims to beat the competition by gaining a sustainable advantage. There are
also many different advantages of the GSCM and the main benefit is that the practice of
GSCM is considered as the planned sourcing, and this activity helps in maintaining the
activities effectively, the activities that are undertaken with planning strategically are
planning, controlling, evaluation and the execution of all the practices that will help in
meeting the organizational objectives whereas this process is not followed with sourcing.
Thus there is the advantage of following the GSCM because this helps in ensuring that
sourcing in a strategic manner is being practised and the activities of the organization can
meet the needs and manage all the operations of the supply chain as expected and defined
in the organizational activities & performance (Cherrafi et al., 2016).
With the change in global business activities, there is also a change in the competition
among the competitors in the market. Now the organizations compete to manage their
supply chain links along with different partners, distributors, suppliers and final consumers.
The GSCM has improved the performance of many organizations to a greater extent and
also changed competitive advantage terms. The organizations gain a competitive advantage
with the support of delivering time, increased product quality, innovation, cost etc. and it
also focuses on bringing improvements for the organization by managing the time
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effectively and focusing on the satisfaction and the awareness of the consumers (Ho et al.,
2015).
Some changes have been brought in terms of money and the activities involved in improving
activities of the organizational marketing and this helps the organization in bringing the
increased share of the market and increase in 0verall organizational profits. The
organization also gets help in improving its purchasing practices that supports production
activities improvement. (Dubey et al., 2015) there are improvements with the GSCM in
many areas and majorly in organization performance in financial terms and increased share
of the market by an increase in the overall sales of the company.
There is also some other benefits of GSCM, the relationship between the suppliers and the
customers also increases and this helps in leveraging abilities of the individuals in the
organisation in operational and strategic terms. The improved strategic relationship of the
firm with their suppliers through GSCM helps in maintaining the supply chain management.
The suppliers, who want to participate in the organizational production process effectively,
could help the organization in getting effective cost & design and also the choices to satisfy
their consumers with the best products and the assessments for the designs can also be
guided by strategic suppliers. Through the supplier relationship with the organization, all the
organizational members can effectively perform and manage & reduce the resources that
are not useful for organizational growth (Mangan and Lalwani, 2016).
The global supply chain management also helps in maintaining the stability, reliability and
the satisfaction of the consumers because with the practice of GSCM the time of the goods
delivery is maintained and that too by ensuring the right place and the right amount as well
as product quality. There is also the benefit of getting the trust of the consumers because
marinating relationships with the customers is very essential when the consumers get
satisfied for the first time then their return for the next time increases and this ensures that
there will be more visits of the consumers. These practices of the organization also help in
gaining competitive advantage in the market because they can show their product different
from their competitors and also focus on improving customer reliability & increased product
quality.
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The information is shared among the organizational departments and this creates the
important part of the Global Supply chain management because with this, the accuracy of
the information is checked and it is also ensured that information is not retrieved or used by
others. This information is shared in a manner that does not lead to an increase in any kind
of disputes infirm. (Chin et al., 2015) explained that supply chain plays a crucial role an act
as a building block in managing the better supply chain management. The employees of the
organization, who make use of the information very frequently, can analyse the
organization’s requirements effectively and this will help in maintaining and understanding
the requirements of the end-users or the consumers.
The performance of the organisations has also increased with the integration of the ERP and
the GSCM. With the help of the ERP the resources of the organizations are decided
efficiently and the planning is done for all the activities, the information is shared among the
departments of organizations and all other items are scheduled and arranged, such as
labour, material etc. the integration of the tool that is ERP and the GSCM helps the
organization in their decision-making process, planning process and also helps for
performance improvement (Costa et al., 2016). The organizations get many benefits from
the use of ERP because it also provides combining of the various locations that help in
reducing the challenges of the transportation and activities related to that. The organization
with the use of Global Supply Chain Management also undertakes technological integration,
this is enabled through ERP and this helps in bringing efficiency in the organizational work
and ensures the information accuracy (Kurbel, 2016).
The organizational risk is also managed with the help of the GSCM, there is always risk
involved in the activities of getting the raw materials and transforming them into the
finished goods. The various types of risks may be the halt time between processing, the late
delivery of the finished goods etc. other risks that are involved with the organization are
cost, risk in the environment of work (Choi et al., 2016). These are major risk factors as the
cost can terminate many activities and lead to poor performance. The use of supply chain
management globally helps in minimizing the risk factor; the organization also gets the safe
environment for work, also the reputation of the organisation is being managed through
this activity that is the supply chain, management because the responsibility of managing all
the organizational issues is with them. Global marketing risks are also minimized through
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this practice because there are risks involved such as there is a danger of getting
breakdown, disruptions and bankruptcies in the of the marketing tasks undertaken by the
company overseas(Christopher, 2016).
Another practice that is used in the organization under the global supply chain is production
through lean procurement (Bai et al., 2019). The cost of the overall organisational
production is being minimized and this practice also focuses on reducing the various tasks
involved. The use of the lean production helps the organization in maintaining the healthy
long term relationship with its suppliers that help in reducing the activities and tasks that
are waste and put efforts for adding more value for the satisfaction of their consumers. All
the activities that are considered as waste are reduced through lean production and the
main motive is to minimize the overall production cost. The use of advanced technology and
the various other e-commerce methods helps the organization in analysing and maintain the
stock for the organization and also helps in analysing organizational capacity for the
information flow (Meindl, 2016).
The support for the organizational profitability and the increased efficiency is done through
the practice of Global supply chain; the increased productivity of the organization is wholly
dependent on the activities of the organization, the practice of GSCM also helps in deciding
which all activities have to be done in future and how the company has to respond so that
all the customer requirements must be fulfilled that is the customer must know about the
product quality, its availability, delivery time etc. the performance of the organization is also
improved through the global management of the supply chain as all the challenges, risks and
the problems are faced and actions to resolve those problems are taken effectively through
this. Various issues such as stability of the political body, changes in the working
environment of organization etc. many activities in the organizations are done that explains
the organization is serving effectively to all of its customers (Yawar and Seuring, 2017). The
role of the global supply chain is like the connection between the different supply chain
persons so that they work collectively to increase the overall performance of the firm.
To control the firm's performance, the practice of the environmental supply chain is used
that helps the organisation is paying attention to use CSR practices in their operations and
make sure about environmental influence performance of supply chain. Many factors are
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involved in the environment supply chain and these are such as human resource,
community, economic and the cultural environment (Yawar and Seuring, 2017). The
organization also aims at practising the green production activities in which all the activities
related to environmental safety during production of products are encouraged. The
activities involved in a green environment are such as recycling of the products as well as
services, using sustainable products for production etc.
The activities of outsourcing are also encouraged by the practice of the global supply chain
in an organization. The organization can outsource to another person or party and can take
many different advantages from that for organizational growth. All the benefits that the
organisation gets from outsourcing activities are a reduction in the cost of labour because
some of the tasks have been transferred or shifted to another part for a specific period. The
benefits that are taken from the outsourcing advantages can be used in the organization for
improving their performance, the organization can manage the skilled labour, focus on the
cost reduction, get the flexibility with their employees and also the use of the advanced
technology in the organizational activities supports in bringing efficiency in the
organizational performance (Mota et al., 2015). The activity of outsourcing in the
organizational work can be explained as the set of different activities, many different
organizations make use of the outsourcing practice so that their predefined goals are
achieved. The things that are being outsourced by the different organizations are the human
resource, the information technology, the knowledge as well as information, facilities of the
transportation, warehousing, logistics, distribution etc.
Another practice that is very useful for the organizations is the postponement; the company
takes the step forward with the help of postponement in areas such as the needs of the
various consumers that are changing frequently could be met by the organizational in a very
smooth manner (Marshall et al., 2015). The practice of using the postponement for the
organization is best only when the organization is planning to produce a product with the
increased innovation, higher price, high variations, the long time of delivery, and the
uncertainty in the demand of the customers. The use of the practice of Global Supply chain
management in the organization also enables analysing the chain of the design network in
an organization. This is the activity in which the facilities of the organization are located and
the decision to demand a source with the network of the system is taken. The act of
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choosing the ways or different transportation is also done in through this practice in the
organization and this is decided in the manner so that customers get the service or product
at minimum cost and minimum time of delivery.
Thus summarising the content discussed above explains that organizations will get many
benefits through adopting the global supply chain management in their business operations.
It helps in managing and bringing effective results for the efforts done by the organization.
Through the practices discussed above, many advantages take the organization towards
growth and development and also helps in minimizing the cost of production for earning
higher profitability.
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REFERENCING
Bai, C., Satir, A. and Sarkis, J., 2019. Investing in lean manufacturing practices: an
environmental and operational perspective. International Journal of Production Research,
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Cherrafi, A., Elfezazi, S., Chiarini, A., Mokhlis, A. and Benhida, K., 2016. The integration of
lean manufacturing, Six Sigma and sustainability: A literature review and future research
directions for developing a specific model. Journal of Cleaner Production, 139, pp.828-846.
Chin, T.A., Tat, H.H. and Sulaiman, Z., 2015. Green supply chain management,
environmental collaboration and sustainability performance. Procedia Cirp, 26, pp.695-699.
Choi, T.M., Wallace, S.W. and Wang, Y., 2016. Risk management and coordination in service
supply chains: information, logistics and outsourcing. Journal of the Operational Research
Society, 67(2), pp.159-164.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M., 2016. Enterprise resource planning
adoption and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.
Dubey, R., Gunasekaran, A. and Ali, S.S., 2015. Exploring the relationship between
leadership, operational practices, institutional pressures and environmental performance: A
framework for green supply chain. International Journal of Production Economics, 160,
pp.120-132.
Ho, W., Zheng, T., Yildiz, H. and Talluri, S., 2015. Supply chain risk management: a literature
review. International Journal of Production Research, 53(16), pp.5031-5069.
Kurbel, K.E., 2016. Enterprise resource planning and supply chain management. SPRINGER-
VERLAG BERLIN AN.
Mangan, J. and Lalwani, C.L., 2016. Global logistics and supply chain management. John
Wiley & Sons.
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Marshall, D., McCarthy, L., Heavey, C. and McGrath, P., 2015. Environmental and social
supply chain management sustainability practices: construct development and
measurement. Production Planning & Control, 26(8), pp.673-690.
Meindl, S.C.P., 2016. Supply Chain Management--Strategy, Planning and Operation.
Tsinghua University Press. wheat soybean others land for no use.
Mota, B., Gomes, M.I., Carvalho, A. and Barbosa-Povoa, A.P., 2015. Towards supply chain
sustainability: economic, environmental and social design and planning. Journal of Cleaner
Production, 105, pp.14-27.
Yawar, S.A. and Seuring, S., 2017. Management of social issues in supply chains: a literature
review exploring social issues, actions and performance outcomes. Journal of Business
Ethics, 141(3), pp.621-643.
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