Global Supply Chain Management: A Comprehensive Analysis

This essay delves into the intricacies of global supply chain management, specifically within the clothing industry. It begins by defining the concept and highlighting its significance in connecting raw material procurement to product distribution. The essay explores the supply chain process, emphasizing the roles of various participants and the importance of effective coordination. It then outlines the advantages of supply chain management, such as increased productivity and brand loyalty, while also addressing common problems like distribution network configuration and strategic challenges. Key components of effective supply chain management, including process integration, outsourcing, customer service, and procurement, are examined. The essay concludes by discussing improvement strategies such as lean and agile approaches, logistics optimization, and marketing management, alongside performance measurement metrics like customer satisfaction and risk management. This analysis provides a comprehensive understanding of the strategies and challenges in the global clothing supply chain.

Global Supply

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global supply chain management is defines as the network of the activities where the raw
material is purchased and then it will transfer into the high quality goods and then delivered to
customers by distribution system. It encompasses the planning and management of all the
activities which are involves in the sourcing, procurement and logistics management. It also
includes the suppliers, intermediaries and third party service and all of these are crucial
components of coordination and collaboration with channel partners(Ivanov, Tsipoulanidis and
Schönberger, 2017). Essay will define the process of supply chain management as will as its
advantages and problems in the clothing industry. Assignment highlights how clothing firms
govern global supply chain management and increase their profitability and productivity. In this
essay we will also discuss the various decision of the supply chain management such as
production decision, location decision and transportation decisions of the clothing industries
which provides the road map to company for increasing its productivity.
MAIN BODY
Global supply chain management
Global supply management refers to the network of facilities and distribution options which
perform the function of procurement of materials and transformation of these products into
finished products through better production process and at the end distribute this product to the
consumers. The supply chain management is typically viewed in vertically integrated firms
where the whole material flow is owned by the single enterprise and those where each channel
member operates independently. The effective chain management plays an important role in
coordinating between various players of chain(Stadtler, 2015).
Clothing industry is a global community and a major foreign exchange earner in many
developing countries and it has changed dramatically as a result of deregulation and changes in
fashion trends which affect the productivity of the clothing industry.
Supply chain process
A typical supply chain management process includes the various participants which plays an
important role in providing the goods and services to customers through distribution network of
the clothing industry. Each of participants connected through the flow of products, information
and funds. Clothing industry can effectively design the supply chain process according to the
need of customers and role of participants(Ayers and Odegaard, 2017).
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High performance based business identify the various supply chain and design to deliver their
value propositions in terms of goods and services across the ranges targeted customers. Clothing
industry can provides their products and services to customers through above supply chain
process and earn high profitability. For improving the productivity of the firm, firstly they will
identify the various requirement of the customers in terms of products and then contact supplier
for getting the appropriate raw material for the production process and with the help of highly
creative and efficient production department company can produce the high quality goods and
through its effective distribution network company provides the products to the customers which
ultimately results in the high profitability of the firm(Christopher, 2016).
Advantage of supply chain management
Clothing industry have turned increasingly in terms of global sources form their suppliers. The
globalization of supply chain management helps to enterprises in finding out the more effective
ways for coordinating the flow of materials into as well as out of the company. Supply chain
management not only provides the productivity benefits to clothing industry but also provides
the value advantages. The process also plays an important role in the making a defect freed
product and faster selling it to consumers exactly on time which increase the brand loyalty of the
company and also enhance the productivity of the firm(Monczka and et.al., 2015).
If supply chain is managed in the efficient manner then it would not only contribute in reducing
the cost of the company but will also help in avoiding unnecessary complexities in the working.
It helps in avoiding complexities by eliminating government restrictions which may hinder the
smooth management of the supply chain. Apart from this, if the supply chain is managed
properly then it would be able to serve more number of customers. This would not only help in
increasing the sales but proper management of supply chain also fosters in providing better
quality of products on timely basis. For example: products of Zara are made available very fast
in their stores because of their efficient supply chain management. Clothes of Zara on recent
trends are made available in their stores within 2 weeks which is one of the major reason behind
the high reputation of the company(Tokatli, 2018).
Problems in the supply chain management
Clothing industry also faces various problems while designing the process of supply chain
management which includes the distribution network configuration such as location and network
mission of the suppliers, production facilities of the company, distribution centres and channel of
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distribution, warehouse and the requirement of customers. Creating the distribution strategy is
the main problem for supply chain management which includes the various questions such as
operating control, delivery scheme and ocean frights for delivering the products to the customers.
It is very important to formulate this strategy efficiently in order to achieve the objectives of the
organisation effectively and efficiently(Basu and Wright, 2016).
These all are the problems faced in supply chain management and can be effectively solved
through managing and coordinating the movement of the material, information and finds across
the whole supply chain. It is very important to solve these problems on timely basis so as to
retain and grow the market share of the company.
Key component of critical supply chain management
Supply chain process integration: It includes the collaborative work between buyers and
suppliers, joint product's development and shared information. For successful operating an
integrated supply chain of clothing industry requires a continuous information flow in terms of
customers wants and distribution network. It includes the various aspect which plays an
important role in improving the process of supply chain management process of clothing
industry such as customer relationship management, customer service management and product
development and commercialization(Stadtler, 2015).
Outsourcing: It is not about outsourcing the procurement of materials and components but
companies also outsourcing the products and services which are traditionally have been provided
in-house. Company adopted this trend because they will increasingly focus on those activities in
the value chain where it has a great advantage. The provision of transport, warehouse and
inventory control is increasingly divided into the logistics partners. In this situation the strategic
direction of clothing industry need to by taken centrally along with monitoring and control power
of supplier performance.
Customer service management process: It refers to the relationship between the organization
and its customers. The main source of consumers information is customer service which provides
the information about the requirement of products in terms of quality and quantity. With the help
of companies production and distribution activities, it provides the customer with real time
information on scheduling and product availability. For example Marks and Spencer fashion
company of clothing industry build the customer relationship through determining mutually
satisfying common goals for customer and its firm(Morita and et.al., 2015).
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Procurement process: Companies designs the strategic plan with the help of supplier to support
the manufacturing flow of management process. The firm who operates their business operation
globally, sourcing should be managed on a global basis. Activities require to obtaining the
product and material from the outside supplier including resource planning, supply sourcing,
negotiation, storage, handling and quality assurance.
Improvement strategies of supply chain management
It is very important for the supply chain management process of clothing industry to produce the
better quality clothes at the right place and right time for gaining the competitive advantage from
the market place. It is very essential to gain the competitive advantage over other rivalry firms in
order to beat the competitors and retain and grow the market share in the clothing industry.
Supply chain strategies are needed for survival of the company. The strategies which can be
applied to improve the supply chain of the clothing industry includes the following :
Lean and Agile strategy to the supply chain: For improving the performance and
competitiveness in the market, leanness is used and the agile is need to be applied after the lean
process. The main advantage of this strategy in the supply chain of the company, it will reduce
the work time as the company will pay more attention to the value added work and it will also
increase the quality of work and reduce the wastage of clothes in the company. It also has some
limitation as its training cost will high and it requires highly skilled labour in the production
process(Formentini and Taticchi, 2016).
Logistic strategies: The success of the companies supply chain is directly linked to the logistics
of the company and it is vital for company to have a logistic strategy in their work place
environment. It is important for the fashion company to make the decision strategically on the
logistics. The strategy need to be design according to the distribution centres, transportation
modes which the company will use. The smaller enterprise of fashion used the third party
logistics as it is more cost effective. It provides the benefits to the company in terms of accessing
the resources, processes and technological advancement in the production process of the
company. The limitation of this strategy, it is possibility that there is difference between the
company and third party's opinion and perceptions(Kain and Verma, 2018).
Purchasing and procurement strategies: It plays an important role in supply chain because it
reduces the rates of raw material and can increase the margin of profit in the end products that is
clothes. If raw material are purchased by the clothing company at the considerable price, it will
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result in the more profit and also increase the competitive advantage of the enterprise. With the
help of total quality management company can effectively improve the quality of the clothes and
providing to the customers with Zero defect and error. It builds the strong relationship between
company and supplier and this in turn helps both department the department to work effectively
towards the attainment of the objectives of the company(Giannakis and Papadopoulos, 2016).
Marketing management strategies: The marketing strategies of the clothing industry includes
the customer value and its delivery process. Marketing management strategy plays an important
role understanding the customer and their needs and requirement for increasing the productivity
and profitability of the firm. This strategy provides the road map to company for reaching its
target customers and also providing the better quality goods timely which results in the high
brand recognition as well as improved brand image in the clothing industry. The limitation, in
terms of understanding the customer requirement and delivering the product with the consistency
to consumers.
Measurement of supply chain management process
Clothing industry evaluates the performance of supply chain management through various
measures such as satisfied customers, integration of information, effective risk management and
efficient supplier performance(Fredendall and Hill, 2016). Each measure plays a very important
role towards the measurement of the performance of the supply chain management.
Satisfies customers: The satisfaction of customer divided into three determinant like before
transaction satisfaction, satisfaction at the time of transaction and the level of satisfaction after
the transaction. Consumers plays an important role in the supply chain management because at
the end product goes to the customers which ultimately results in the higher productivity of the
company because satisfied customer provides the more business.
Integration of material flow and the information: The supply chain management of the
company should be able to communicate the various information correctly and the transportation
process of materials should happen smoothly and timely. This is very important in order to attain
the objectives of the company effectively and efficiently(Christopher, 2016).
Effective risk management: Clothing company can evaluate the performance of the supply
chain through minimizing the risk factors as there are various risks included in the supply chain.
The company even pay lot of emphasis on reducing the risk as it will lead to improvement in the
performance of the company. The sustainability of supply chain can be increased through proper
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management of risk factors(Ho and et.al., 2015).
Supplier performance: Better relationship between supplier and company leads to the effective
supply chain management and it is vital for the company to have an efficient supplier who
provides raw material timely. This will in turn also help in improving the performance of the
company.
Process view of supply chain
There are two different kinds of views which help in keeping a keen eye on the processes of
global supply chain. Both the views have a different perspective. These two kinds of view are
cycle view and push and pull view. Cycle view has four elements.
Cycle view:First and foremost element is customer order cycle. Under this stage a link between
retailers and customers is established. Efforts are made to serve the orders of the customers on
time and fulfil their expectation. This in turn would help in attracting more orders from the
customers. This stage is basically concerned with the fulfilment of need and wants of the
customers in a way that would maximise their satisfaction level(Kaltenegger, Löschel and
Pothen, 2017).
The next stage is replenishment cycle which is concerned with the link between retailers and
distributors. For example: clothing company keeps a keen watch on the stock so that the stock of
the company never remains out of stock. The next element is manufacturing cycle. This stage
emphasis that the manufacturing should be carried out on a continuous basis. This stage is
concerned with the link between distributors and manufacturer. Finally, the final stage, which is
concerned with the link between manufacturer and supplier and is known as procurement cycle.
This stage focus on timely procurement of raw material from suppliers and then manufacturing
of the cloth is done(Crainic and Laporte, 2016).
Push pull view: This view of supply chain is totally concerned with the customer order. Pull
processes are executed with response to a customer order. On the other hand, push processes are
initiated on the basis of anticipation of customer order. This view plays a major role on keeping a
keen eye on the processes of supply chain management(Bi, Huang and Wang, 2016).
Supply chain decisions
There are various kinds of decisions that are taken in order to manage supply chain efficiently so
as to achieve organizational objectives effectively. These decisions are classified into two main
heads. The first kind of decision is strategic decisions. These decision are taken in order to
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formulate the policies which would guide the supply chain so that they are managed properly and
all the stages are coordinated in a very efficient manner. These strategies are formulated mainly
for the long- term as they focus on smooth running of the business in long run(Ho, 2015).
While on the other hand, the second kind of decision is operational decisions. These decisions
are mainly taken in order to manage the day to day activities of the business organisations in a
very efficient manner. If the company fails to take these decisions appropriately then they would
not be able to beat its competitors. This in turn helps in running the business smoothly towards
the attainment of their objectives.
The major decision areas of the supply chain management of clothing industry are location
decisions, production decisions, inventory decisions and transportation decisions. The most
important decisions are locational decisions and due care has to be taken while taking decision
because they are the first step of the supply chain. If these decisions are not taken accurately then
it will disrupt the smooth functioning of the entire supply chain. of the company. Companies
should make sure that the company doesn't suffer from these decision(Ivanov, Tsipoulanidis and
Schönberger, 2017). These decisions include decisions such as production facilities, sourcing
points, stocking points, etc. They are very crucial as they affect the functioning of the business in
the long run.
The next crucial decision is production decision. These decisions are crucial as they have a major
impact towards the revenue, cost and profits of the company. For example: Zara clothing brand
has to determine which kind of clothes they have to produce, what will be the process in order to
manufacture the clothes, what would be location of the areas where the production of the clothes
would be done and so on. Company is known for taking efficient location decisions which is the
main reason behind the success of brand(Morita, 2015).
The other two important decisions taken are inventory decisions and transportation decisions.
Inventory decisions are related to the management of stock of the company. Companies should
make sure that the company doesn't suffer from out of stock as it would create dissatisfaction for
the customers. These decisions include decisions such as production facilities, sourcing points,
stocking points, etc. They are very crucial as they affect the functioning of the business in the
long run.
Last decision which is transportation decision is concerned with determining which mode of
transport should be used in order to deliver the product to the final decision. That mode of
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transport should be selected which would help in delivering the product quickly and safely. For
example: in the clothing industry brand makes lot of efforts in order to reduce the cost and save
the time so that the clothes reach to its stores very quickly(Stadtler, 2015). This is the major
reason behind company providing clothes of recent trends and making them available in their
stores within 2 weeks because of effective transportation system.
Globalisation and global supply chain
Globalisation means going beyond the national boundaries. Globalisation has created the need
for business organisations to manage their global supply chain in a very efficient manner so as to
survive in this competitive environment. For example: clothing industry immense attention on
the management of their supply chain and this has helped the company in gaining competitive
advantage over its rivalries which in turn has contributed in maintaining and growing the market
share of the company. The company has paid lot of attention on coordinating all the stages of
supply chain so as to achieve the objectives of the organisation effectively and efficiently(Basu
and Wright, 2016).
Furthermore, if the global supply chain is managed efficiently then the company would be able
to create its brand awareness on a global level. This will not only help the company in increasing
their sales but would also help in beating the competitors and capturing larger share in the
international market which is very essential to leave the footsteps of the company in this
globalised world. Most importantly, if the company has expertise in its supply chain
management then it would be able to cope up with the technological changes taking place in this
globalised world. Company can run hand in hand with the innovation(Ferdows, Lewis and
Machuca, 2015). This would further help in fulfilling the expectation of the customers by
satisfying their needs and wants. Thus, it is very essential for the success of the business as it
would help the company in achieving new heights.
Management of global supply chain through agility
It is very important in global supply chain to establish agility. Agility helps in creation of a
proper supply chain network, so that all the elements of supply chain can work together towards
the accomplishment of organisational objectives effectively and efficiently. Agility helps in
extending start of the supply chain to the end of supply chain. This has lead to the necessity of
creation of efficient global supply chain and hence for this purpose certain principles were
identified. The first principle that fosters efficient supply chain management is synchronisation
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of all the activities of the supply chain. When all the activities are synchronized properly then it
would foster smooth flow of information so that the organization could perform better towards
the attainment of objectives. For example: Zara clothing company is one of the most popular
brand in clothing industry has linked the manufacturers, produces and retailers of their clothes so
that they can easily communicate with each other which in turn has fostered the achievement of
the objectives of the company effectively(Kain and Verma, 2018).
Next principle says that the company should work smart rather than hard because when efforts
are put in wrong direction then all are useless. Hence, if the organization has proper supply chain
and all keep in constant contact then they would deliver better results as well as each segment of
the supply chain would help the other. On the other hand, if all the segments work individually
without sharing information then they would not be able to achieve the objective as efficiently as
they would if they worked in a co-ordinated manner.
Rest of the principles include partnering with suppliers in order to reduce the in-bound lead
times. This principle tells that this will help the supplier in keeping a better contact with the
customers by sharing information. Next principle says emphasis should be made in order to
reduce the complexities in global supply chain as it will not only help in reducing the burden but
would also facilitate in saving the cost and time. Apart from this, efforts should be made to
manage not only functions but also the processes(Kaltenegger, Löschel and Pothen, 2017).
Sustainability of the global supply chain
The ways in which companies manage business activities strategically and operationally is
affected by the globalization. The risk and challenges for a company emerged at the time of
globalization of the supply chain. The risk begins with the poor quality of products and ends with
the supply distractions. The risk will be increases through political, social and environmental
issues which arises due to the work processes. Global supply chain management plays an
important role in sustaining the competition at the market place and the sustainability also helps
the enterprise in fulfilling the demand of customers. For building a sustainable chain every
organization need to follow the framework which includes three elements such as identification
of motivators, assessment of levers and improvement of practices(Crainic and Laporte, 2016).
Identification of motivators: Every company need to identify and address the social, political
and environmental issues in their supply chain of goods and services. When issues are identifies
it will be easy for the company to set the effective goals and prioritize the work. It is important
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for a company to provide the better quality goods and services on time. The issues include
compliance which understand and follow the rules and regulation of the government. In order to
have sustainable supply chain, it is important to have a competitive advantage over the other
competitors.
Assessment of levers: It includes the various levers which help the company to develop and
maintain the sustainable supply chain. Assessment levers are categorized in internal and external
levers. Internal levers involves the purpose, policies and peoples whereas, external levers
involves partners, public policies and power(Heckmann, Comes and Nickel, 2015).
Improvement of practices: It can be effectively done through the code of conduct
establishment, getting third party certification, selection of supplier and monitoring of the
supplier, all of these practices helps in maintaining the sustainable supply chain management in
the company.
CONCLUSION
From the above essay, it has been summarized that there are 6 stages in the supply chain
management which play a major role in providing the goods from the suppliers to the end users.
Advantages of supply chain management is that it helps in saving the time and cost as well as
keeping the customers satisfied. Further, the key components of the critical supply chain
management were discussed such as supply chain process integration, outsourcing, customer
service management process and procurement process. Apart from that, improvement strategies
of supply chain management were discussed which consisted of agile strategy, procurement
strategy, marketing strategy and logistic strategy. Moreover, sustainability of supply chain
management were discussed which focused on identification of motivators and assessment of
levers and so on. Even two kinds of views for keeping a keen watch on the processes of supply
chain management were discussed and these views were cycled view and push and pull view.
While in the end supply chain decisions were discussed which included transportation decisions,
location decisions, production decision and inventory decision.
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