The other side of the coin
Disadvantages
With advantages always comes disadvantages and when it comes to the supply chain and globalization there in no outlier. I have three or four that I want to talk about in this post.
A large disagreement people like to talk about is political, economic, and environmental instability. "These issues can cause difficulties sourcing the products, materials, and supplies you need when businesses have to close down or are unable to transport goods. This can lead to you not having enough inventory to fulfill customers demand and can hurt both your sales and customers satisfaction."(Donohoe) Problems could also arise where particular customers may have ordered a product but haven't received it yet. An may never receive it at all if it comes to a close or full shutdown.
The next one is particular language and communication barriers. Could be difficult to set up meetings and talk to the other side directly. Issues of being misheard could occur as well. This might seem like a small issue, but if you're dealing with a big shipment it could be extremely bad.
When globalization occurs it will become harder for managers and everyone involved to to plan out a efficient chain to get things done. You will need a higher level expertise when making decisions and perform careful thought out analysis. There are also factors you must think about ahead of time such as potential delays, responsiveness of suppliers, and transporters. This is mainly a disadvantage because more can go wrong at any given time.
Lastly, I find it important to talk about the differing standards and regulations between countries around the world. Making sure your are informed on things such as up to date shipping costs, tariffs, and time to ship are all important. Not only for the supply chain but for your customers.
A large disagreement people like to talk about is political, economic, and environmental instability. "These issues can cause difficulties sourcing the products, materials, and supplies you need when businesses have to close down or are unable to transport goods. This can lead to you not having enough inventory to fulfill customers demand and can hurt both your sales and customers satisfaction."(Donohoe) Problems could also arise where particular customers may have ordered a product but haven't received it yet. An may never receive it at all if it comes to a close or full shutdown.
The next one is particular language and communication barriers. Could be difficult to set up meetings and talk to the other side directly. Issues of being misheard could occur as well. This might seem like a small issue, but if you're dealing with a big shipment it could be extremely bad.
When globalization occurs it will become harder for managers and everyone involved to to plan out a efficient chain to get things done. You will need a higher level expertise when making decisions and perform careful thought out analysis. There are also factors you must think about ahead of time such as potential delays, responsiveness of suppliers, and transporters. This is mainly a disadvantage because more can go wrong at any given time.
Lastly, I find it important to talk about the differing standards and regulations between countries around the world. Making sure your are informed on things such as up to date shipping costs, tariffs, and time to ship are all important. Not only for the supply chain but for your customers.
Comments
Post a Comment