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The Principles of Global Supply Chain Management

 

The Principles of Global Supply Chain Management

The Principles of Global Supply Chain Management - Supply chain management as a strategic business expansion and business development technique has come a long way since its first introduction in the drive of diversification related to retail distribution in USA. 

Now in the era of globalization, the business principles of supply chain management encompassed many business ventures, specializations, strategies and practices covering almost all industries. So, in the globalized business scenario of present world without the evolved practices and strategies of global supply chain management no company or sector can think of a broader expansion or in-depth penetration of the market. 

We would now discuss some of the basic principles of global supply chain management in its present day situation.

1st Principle: Localized Production, Distribution and Marketing

Through the export and import of goods, products in their end price become costly and which is also affected into a meager sell and revenue generation from the foreign markets. Another factor is delay in time. 

In days of past when export and import of goods was the main international mode of doing business, demands for many foreign produced goods used to take a very long time to reach to the customer. 

For a better customer friendly, timely delivery of goods and services, for dealing with customer grievances, for local service facilities and also for cost effectiveness and the resulting revenue generation of the company, the old principles of supply chain management came with a more refined practice and the emergence of global supply chain management was imminent to meet the business demands in the age of globalization. 

So, a local production, distribution and localized sales and marketing became the first working principles of global supply chain management to meet the demands of market expansion better client reach.

2nd Principle: Strategic Partnership and Sharing

The whole concept of distribution went through dramatic changes in the practicing principles of global supply chain management. The distributor is given much of the authorities in decision and business strategy making in regard to the business operation in local level. 

Moreover, distributor is given a better share of profit in comparison to the so called sales commission in yesteryears business practice. The profile of a distributor transformed into professional task based partnership. 

These practices resulted into a sense of ownership in the mindset of the distribution forces which paved the way for new reaches of success for the company. This principle of Strategic Partnership and sharing is one of the major principles of global supply chain management.

3rd Principle: Building a Local, Culture Specific Image

To enjoy a wider acceptance of the delivered products and services throughout every level of society and to make the marketing and promotional campaign more successful, building a local image of the company and its services was very much essential and for this reason the campaigns and marketing should include the local cultural as well as traditional ingredients. 

This is precisely what has happened in relation to the marketing success of many world renowned brands. So, the principle of local and culture specific image building is one of the most important principles of global supply chain management.

Except the very basic three principles mentioned above, there has been a lot of room left for further discussion in regard to the principles of global supply chain management and its successive development  and variance, but as far as the aim of this article is concerned, it nevertheless provides the basic idea of the working and guiding principles of global supply chain management.

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