Sat. May 18th, 2024
Supply Chain Management

Supply chain management is very important and helps organize resources, individuals, organizations, technology, and activities for production and sales. For better understanding, supply chain management (SCM) refers to overseeing and handling the production of goods or services to maximize quality in terms of delivery, customer experience, and profitability around the globe. It involves the flow of processes, information, and resources globally. Various advantages have been attached to the global supply chain, including low prices linked to the manufacturer, supplier development, and maximizing competition. Both established and small businesses have found a way of ensuring they have to organize for proper supply chain management due to online marketing that offers a wide market range.  Let’s have an insight on what is global supply chain management?

Guide on global supply chain management 

Demand planning 

As information technology industries continue to grow, the world is reduced into a smaller village. As a result, people have found social media and various platforms to sell their ideas. People have bigger visions of reaching a global market with the current technology. Therefore, you need to check on your records and see the market demand and the destinations across the globe. Demand planning calls for data gathering, including historical data (applying analytics and past sales), operation and sales department planning, and forecasting. For a successful global supply chain management, the expert recommends the Sales and Operations Planning (S&OP) process. It entails gathering data discussion, creating an ample environment for demand and production, alongside management approval. Developed companies implement global supply chain management effectively using advanced S&OP to integrated business planning (IBP). IBP entails a plan for other departments in the business in a single company plan to ensure corporation. Forecasting is important since it will help you avoid surpluses or shortage inventory. 

Production planning 

Production planning is a major step in every business, especially for the global market. After demand planning, you will understand your market demand, which will impact the production rate. Most successful businesses that target the global market utilize Advance Planning and Scheduling (APS) or Advance Planner and Optimizer (APO). Either of the techniques helps the company optimize resources used in manufacturing to align with the market demand. As a result, changes in demand will be noticed and directly affect the supply. This has helped most companies minimize wastage and avoid shortages. If your business is going for a global market, production planning is inevitable to meet market demand. Ensure you create trust and conducive terms and policies to avoid losses. 

Material requirements planning 

Material requirements planning (MRP) is a process that entails ensuring you have adequate components and materials, are readily available for use, identifying gaps, and making more purchases where need be. This helps businesses avoid shortages during production, especially if the raw materials are not readily available. Successful companies have managed this using manufacturing resource planning (MRP II), entailing other departments such as finance and HR. Your global supply chain management to be successful requires early preparation to meet the wide market range. Also, it will help your business avoid unnecessary delays since also shipping takes considerable time.  

Inventory management 

Inventory management refers to various formulations and techniques used to ensure adequate supply from raw materials used during manufacturing, packaging, and storage for your products as they await shipment to avoid time and resources wastage. According to research, inventory management issues have increased with the rise of technology. During the initial stages of implementation, there is low production. As new technologies are being implemented, there has been a rise in demand for training to ensure people master how it works. The same is also evident in the supply chain. One of the latest inventories includes supply chain visibility. It is a technology where tracking numbers are availed to customers to locate the location of products. It also helps the supply management team to improve performance. 


Procurement or resourcing refers to the process of locating suppliers for goods, managing relationships, and buying goods economically. The process also ensures proper communication by sending a request for bids and major paperwork such as invoices and orders. It is one of the most significant areas of the supply chain that helps create a good working relationship. It is also important since it identifies both the output and input the company offers and gets in return. It comprises manufacturers, suppliers, distributors, and retailers. Developed companies use supplier relationship management (SRM) to address common issues that arise from supplies. It is responsible for forecasting and offering instant solutions. Whenever there is failure or delay on supplies to unavoidable circumstances, the team involves HR to mitigate and reach an amicable solution. 


It is the final stage of global supply chain management. It caters to the storage of goods, transportation, and delivery processes. It is responsible for ensuring products are well stored after being manufactured as they await transportation. Also, it has to ensure good record-keeping as goods leave the storage facility. Since most businesses have gone for the global market, it ensures appropriate delivery methods, preferably air transport for quick delivery. Most successful companies have employed reverse logistics (return and recycling of products) to avoid wastage of damaged products during shipping. Logistics is very important in the global supply chain since it will help build trust by ensuring online orders are delivered timely and safely. 


With the world is turning into the smallest with ever with the use of technology, businesses have taken batter market trends. The market aim has changed from local to international. To meet the aim of a global market, you need to understand what global supply chain management is. Understanding it and strategizing it using the above procedures will help you gain benefits, such as fulfilling market demand and meeting customers’ needs. It will also help you avoid unnecessary losses incurred due to poor forecasting or over expectation. All in all, take advantage of social media platforms to sell your idea in every corner of the globe. 

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