3 – The impact of globalization on logistics and supply chain management

Customer service perspective
-Reduces product lifecycle
-may require company customization of supply chain models in different countries
Impact on Logistics
-Growing number of specialists and continuous improvements in information technology have contributed to the flattening of the world
% of US spending for information technology services in India 2008
59%
China is attracting US companies to establish
research centers there
China and India are prevailing in this sense because
of their large populations
Global companies are successful when
their strategies help them simultaneously achieve their business objectives at their various global locations
Impact on SPM
organizations are becoming transformed into flatter, more horizontal, and more collaborative firms that participate in more supply chains to add value and efficiency
Operating globally has become easier
even for individuals and small companies
Supply chains and SPM have played an important role in the
global economy and helped push the growth and success of firms that do supply chaining very well
Globalization offers both
a opportunity and a threat for firms
many challenges and risks go along with
firms doing business in other countries
Supply chain security
has been threatened by globalizations
Operating successfully in a global market means
-sourcing arterial and components worldwide
-selecting global locations to keep supply and distribution centers
-Evaluating transportation alternatives
-Understanding Gov. influences on global supply chains
-Maintaining customer service