Introduction to Globalization in Supply Chain

Understanding Globalization 

In the year 2000 the International Monetary Fund (IMF) deemed the definition of globalization as the process of trade and transactions, capital and investment movements, migration and movement of people, and the reach of knowledge. This might sound like a bunch of gibberish to some. It did to me when I first started to learn about it. However to clear up any confusion, globalization is really the process by which people and goods move across borders. There are 5 key components to globalization:

  • International Trade
  • Foreign direct investment
  • Capital market flows
  • Migration
  • Diffusion of technology
Everything in this list plays a key factor and without one functioning properly any number of issues could occur. For more information on the basic of globalization you can visit Globalization Intro

 Globalization's impact on Supply Chain

"No area of business is more affected by the trend to a global business than the supply chain." (SDC) Manufacturing, distribution, sourcing of materials and many others have been effected by the increase in supplier base due to globalization. The impact of the internet & new tech seeming to come out every year make it difficult to match these needs. Many in the industry believe the supply chain is not flexible enough to keep up with these needs in the ongoing years.

I disagree with these claims however, with the right supply chain design you can optimize shipping and the flow of materials throughout. Going forward I will help explain in more detail Globalization's impact on the supply chain by showing advantages and disadvantages along with giving my personal opinions and more.
For more info to get you started:  Globalization Video













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