Global Supply Chains Issues More and more companies are entering international markets, outsourcing manufacturing operations, and obtaining supplies from other countries as will as selling aboard. Their supply chains extend across multiple courtiers and regions. There are additional complexities and challengers to managing a global supply chain.
Global supply chains typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Performance standards may need to reflect foreign government regulations and cultural differences.
The Internet helps companies manage many aspects of their global supply chains, including sourcing, transportation, communications, and international finance. Today’s apparel industry, for example, relies heavily on outsourcing to contract manufacturers in China and other low-wage countries. Apparel companies are staring to use the Web to manage their global supply chain and production issues. (Review the discussion of LI & Fung in Chapter 3)