Global Supply Chain Management in Retail: An Analysis

This report provides a comprehensive analysis of global supply chain management, focusing specifically on the retail sector. It begins with an executive summary outlining the key aspects of supply chain management, emphasizing the interplay of internal and external business factors in driving retail success. The report delves into the positive and negative attributes associated with supply chain management, providing real-world examples of retail organizations, such as Unilever and Coca-Cola, to illustrate these characteristics. It then explores the gaps between the evaluation and implementation of supply chain improvements, highlighting challenges like partnership gaps, international regulation complexities, and limited global connections. The report further examines multidimensional global supply chain issues impacting retail businesses, including quality control, finance, international regulations, cost control, and sustainability, with examples from companies like Nestle and Colgate. The conclusion underscores the critical role of effective supply chain management in achieving business performance and profitability. The report is a detailed examination of the complexities of global supply chain management in the retail industry and offers valuable insights into its challenges and potential solutions.

Running head: Supply Chain
MANAGEMENT
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Executive summary
Global supply chain management remains an important factor that is supported by both
internal and external business operational factors. These internal and external factors interplay to
foster retail business success in performance, customer retention, and satisfaction of stakeholders
along with the network. The paper explores the global supply chain management with a major
focus on the retail business sector. Positive and negative characteristics associated with the
supply chain management are critically analyzed in relations to retail business. Examples of
retail business organizations that show these positive and negative supply chain management
forms part of the analysis. Some of the gaps that exist between the evaluation and
implementation of supply chain improvements are explored within the document. The gap
between the organization and the interconnected supply chain network present a great challenge
for implementing the supply chain improvements. Multi-factorial global supply chain issues that
affect retail business within the global supply chain network form the third area that is presented
within the paper. The solution to these supply chain issues enables improvement of the supply
chain performance of a retail business. Examples of companies that have faced these global
supply chain issues are discussed within the document. The paper concludes by recognizing the
importance of supply chain management in business performance and profitability.

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Table of Contents
Introduction...............................................................................................................................................4
Retail supply chain management..............................................................................................................4
1. Attributes of retail supply chain management................................................................................5
1.1 Positive attributes associated with retail supply chain management................................................5
1.1.1 Technology implementation.......................................................................................................5
1.1.2 Planning and network design......................................................................................................5
Unilever company example.......................................................................................................................6
1.1.3 Flexible supply chain management.............................................................................................6
1.1.4 Innovative supply chain..............................................................................................................7
1.1.5 Sustainable supply chain.............................................................................................................7
Example of Coca Cola Company..............................................................................................................7
1.2 Negative attributes of retail supply chain management....................................................................8
1.2.1 Supply chain disruption..............................................................................................................8
1.2.2 Supply chain inefficiencies..........................................................................................................8
1.2.3 Unethical supply chain management..........................................................................................9
Nestle Company example..........................................................................................................................9
2. Evaluation and implementation of supply chain improvement......................................................9
2.1 Partnership gap.................................................................................................................................9
2.2 International regulations gap...........................................................................................................10
2.3 Limited global connections..............................................................................................................10
Nyetimber Wine retailer Example.........................................................................................................11
3. Global retail Supply chain management issues.............................................................................11
3.1 The quality level of goods and services...........................................................................................11
3.2 Finance and insurance.....................................................................................................................12
3.3 International regulations and standards..........................................................................................13
Dodd-Frank Decision example...............................................................................................................13
3.4 Cost control.....................................................................................................................................14
3.5 Sustainability...................................................................................................................................14
Colgate Company example.....................................................................................................................15
Conclusion................................................................................................................................................15
Reference..................................................................................................................................................16

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Introduction
Global supply chain management encompasses many factors that interplay leading to
successful retail operations. A successful supply chain management requires consideration of
many different factors that are interconnected that enable retention of customers and integrated
players. These factors are either internal or external retail business factors. A good global supply
chain management is viewed depending on various attributes that result in successful supply
chain and business operations. There are also negative attributes of supply chain management
within a retail business that is characterized by inefficiencies that prevent a business from
making profit. Several multidimensional global supply chain issues currently affect the
performance of the retail supply chain. Some of these issues include international regulations,
sustainability, cost control, finance, and insurance and quality level of retail goods or services.
The following paper explores the global supply chain management and various supply chain
issues in the retail industry.
Retail supply chain management
A retail business supply chain consists of a wide multifactorial system that involves many
international logistic companies. The global retail supply chain also consists of a number of retail
business that competes based on its supply chain performance. The ability of a company to
manage its supply chain enables the company to perform at the international level (Poluha 2016).

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1. Attributes of retail supply chain management
There are some positive and negative attributes that are associated with retail supply
chain management. These attributes give the quality of the supply chain management that
enables the retail company to perform in the market through gaining competitive advantage,
sustain customers and satisfy all stakeholders along with the supply chain network.
1.1 Positive attributes associated with retail supply chain
management
1.1.1 Technology implementation
Technology implementation is a positive attribute effective supply chain within a retail
business. The effective supply chain is Technology plays an important role in the success of
retail business especially on its supply chain management. A competitive business has its supply
chain incorporated with current technologies that aid in monitoring, transaction, and movement
of goods along with the supply chain network. Global supply chain in the era of globalization
requires technologies that comply with international regulations and standards. The ability of the
supply chain to integrate new and innovative technologies is attributes associated with the
successful supply chain. One example of companies that have integrated technology into its
supply chain network is IKEA that use beacons to direct customers to retail shops hence they are
retained (Mallik, 2010).
1.1.2 Planning and network design

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Planning and network design is another positive attribute of a successful supply chain in
the global platform. Companies with good planning and network design of supply chain network
ensure that customers, suppliers and company management are connected for effective supply of
goods and services. For instance, an online retail company such as Amazon stores have form
connection with customers and suppliers leading to the success of the company. A supply chain
that has interaction and integration of various supply chain players result in a successful business
(Bhatnagar, 2012).
Unilever company example
Unilever Company at the beginning of the year 2000 embarked on restructuring supply
chain network to allow proper integration of players. The company focused on both internal and
external factors that result in the success of the retail business. The company, therefore,
redesigned its supply chain and key areas that the company focused on were technology, global
procurement, supplier’s involvement, and supply chain, executives. The overall result is a well-
planned supply chain network that has contributed to the success of the organization in the global
retail business (Unilever, 2019).
1.1.3 Flexible supply chain management
Flexibility is another attribute of a good supply chain management system that ensures
the business has success retail operations within the global supply chain network. The global
supply chain is currently interconnected between various players that require the effectiveness of
the network. The flexibility is attributed to the ability of the supply chain to adapt to various
changes in the global retail supply chain. In addition, the supply chain of a company that is
flexible reflects the internal management of the supply chain. The flexibility of the supply chain

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ensures that various negative factors such as climate are well taken care of to increase the
success of the organization (Geissdoerfer, Morioka, de Carvalho & Evans, 2018).
1.1.4 Innovative supply chain
Innovative supply chain allows changes that may result from technologies and other
factors affecting the supply chain. An excellent competitive supply chain management is
characterized by innovation that results in optimization of the supply chain network. For
instance, the use of beacon to guide customers to nearby retail businesses is one example of
innovative retail supply chain system (Misra, Kahn & Singh, 2010).
1.1.5 Sustainable supply chain
The sustainable supply chain is an attribute of good supply chain management that
incorporates various sustainable policies and management practices. Sustainability is supply
chain issues that currently affect the supply chain management as many global players call for
sustainability in companies within the supply chain network. Some companies within the global
retail supply chain network have gone ahead to develop sustainable operation policies that
reduce the negative impact of products on the environment (Khairul, Azmawani & Ho, 2012).
Example of Coca Cola Company
Coca Cola company is a company that has received attention for its excellent supply
chain management that is characterized by sustainable practices. Coca Cola supply chain has
integrated nearly all the supply chain players that shows greater efficiency. Most of the products
that are used to manufacture Coca Cola products are sourced within the country where products

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are sold. This has ensured that the company maintains the quality of raw materials as well as
products. In addition, the company has over the past years focused on sustainable technologies
that enhance its retail presence (Coca-Cola Company, 2016).
1.2 Negative attributes of retail supply chain management
There are some negative attributes of the global supply chain that affects the retail
business globally. These attributes give the negative qualities of the supply chain management
that retail business is involved in.
1.2.1 Supply chain disruption
Firstly, supply chain disruption is negative attributes that are often seen in the retail
business that affects many businesses globally. Supply chain disruption is normally caused by
numerous factors that disrupt the normal flow of goods and services across the global supply
chain. Disruption may result from internal and external factors that affect the movement of goods
and services (Lam, 2018).
1.2.2 Supply chain inefficiencies
Secondly, inefficiencies is another negative attribute of supply chain management that
result in business loss and can be attributed to poor supply chain planning and network design.
Lack of proper supply chain management is evidence through inefficiencies that make the
business less successful. In addition, inefficient supply chain poorly integrates customer, retailer,
and producers leading to loses instead of profit. The inefficient supply chain also results in

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increased cost often attributed to increasing transaction costs leading to loses (Manuj, Esper &
Stank, 2014).
1.2.3 Unethical supply chain management
Unethical supply chain management is negative attributes of supply chain management
that have been witnessed within the retail business. Dishonesty within the supply chain that often
result from involving supply chain players with unethical behaviors result in company image
destruction and reduced revenue. An unethical operation of some of the supply chain players that
involves slave labors is negative characteristics of supply chain management (Wieland &
Handfield, 2013).
Nestle Company example
Nestle company is an example of a retailer that was involved in unethical supply chain
management that resulted in a tilted company image in the global retail business. This was after
the company involved in the sourcing of seafood that was obtained from Thailand under slave
labor. The company admitted to the unethical supply chain management and developed a plan to
remove unethical players from Thailand fishing suppliers. In the overall result, the company
accepted the unethical behavior and restored its image in the retail market hence improve the
supply chain network (Nestle, 2019).
2. Evaluation and implementation of supply chain improvement
The evaluation of the performance of the supply chain and the implementation of the
supply chain improvements has a huge gap that affects the improvement of the global retail
supply chain.

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2.1 Partnership gap
Firstly, partnership gap is one area that affects the implementation of the supply chain
improvements as one retail business may evaluate the supply chain performance and fail to
provides the solution for challenges due to lack of partnership. Many retail businesses normally
evaluate their performance within the global supply chain yet implementing improvement
require high stakeholder’s partnership. Partnership within the global business requires many
factors to consider given various large organizations that are involved in international logistics.
Improving the global supply chain require retail business despite the size to partner with these
larger international logistic organizations (Hopp, 2011).
2.2 International regulations gap
Secondly, international regulations also give the gap between evaluation and
implementation of supply chain improvements. There are many international regulations that
reduce the capability of one retailer to implement its supply chain improvement strategies that
are obtained after evaluation. Implementation of supply chain improvements requires compliance
of various international regulations that govern international trade. As firm carry out supply
chain evaluation to improve on their operations, much attention is fixed on regulations that are
multifactorial leading to many challenges. For instance, to raise the quality level of products that
move along the supply chain of the retailer, firms have to complies with international regulations
governing countries involved (Raue & Wieland, 2015).
2.3 Limited global connections

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Thirdly, the retail business has limited global connections that help in the implementation
of the supply chain improvements. Evaluation of supply chain performance can be internal
operations, implementation of these evaluation results requires connection to many international
players in order to help implement these improvements. Many retail companies have tried to
improve their supply chain performance yet the improvement can only occur internally because
external factors are wide and interconnected (Todo, Matous & Inoue, 2016).
Nyetimber Wine retailer Example
Nyetimber a major wine retailer in England faced a challenge in 2012 due to changing
weather that made the company to reduce wine production. The main reason was the lack of
proper partnership within the global supply chain to source raw materials for wine making. As a
result, the company decline in producing wine that year (Poluha, 2016).
3. Global retail Supply chain management issues
There are many different multidimensional global supply chain issues that affect the retail
industry. These issues affect the performance of various retail businesses within the global
supply chain network.
3.1 The quality level of goods and services
Determination and controlling of the quality of products that are supplied to many
retailers across the world have been challenging. This is due to many factors that interplay within
the international retail business. For instance, many manufacturers of retail products allow
various quality level for the products they produce and supply. In addition, the quality level

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depends on the quality standards that are set across the supply chain. Many products and services
may have defect and the supply fails to recognize the defect of the low-quality status of goods
supplied. Moreover, many retail products such as agricultural products or those goods that are
produced from agricultural raw material may be polluted right from the field and this affects the
quality of the final product (Wallenburg, Cahill, Knemeyer & Goldsby, 2011).
Reducing the low-quality incidence or dealing the quality level issues requires many
factors to be put in place. Firstly, setting high-quality standards within the retail organization as
an internal objective is one way to ensure the success of organization especially in the supply
chain. Secondly, total quality management as part of supply chain management within the retail
industry and may involves various digital evaluations procedures that ensure that goods that are
supplied meet certain quality conditions. Thirdly, setting high-quality policies that forms part of
internal and external factors within the supply chain services to improves the quality level of
retail goods. Company or country may decide to develop quality standards or quality policies
that limit low-quality goods from being supplied into the country or the company leading to
reduced low-quality goods (Kozlenkova et al., 2015).
3.2 Finance and insurance
Finance and insurance is another global logistics issue that affects retail industries as safe
and standards payment systems is normally a challenge. Transaction within the international
supply chain is complicated and requires safe means of transaction that involves many factors.
Obtaining correct insurance for retail goods that are being supplied is part of the issue as many
insurance companies operate at the country level and finding companies for large international
supply is essential. There are many different payment methods that are used within the