Question
Write a review summary of the article titled Global Supply Chain Management: Challenges and Solution. It must include the following: Research scope and objectives, research
Write a review summary of the article titled "Global Supply Chain Management: Challenges and Solution". It must include the following: Research scope and objectives, research questions, hypothesis if any, methodology, research findings, discussion, study's implications, conclusion.
authors: Neerosha Rajah*, Haslinda Musa, Victor Nipis, Prasad Kunjee Krishnan, Sujitra Suppiah, Amir Fyrdaus Norull Ahmad
Abstract: Efficient supply chain management is crucial for survival and success in a turbulent world. Current economic crisis increases its importance even further. This conceptual paper reviews latest findings in the most relevant areas of supply chain management. The objective of this paper is to identify global supply chain management challenges and its solutions. In order to achieve the objectives, a thorough literature review was conducted; main findings are reviewed. This review has covered Indian industry, HaiHas supplier, and other global perspectives. Therefore, the challenges might be different according to the origin countries and industries. Besides, it is also found that the challenges can be mitigated with some alternatives derived from reviewing the case studies. The findings shown that in order to compete with global participation, efforts on seeking out the solutions would be much encouraged and embedded into the organizations.
. Introduction The economic growth in every country is depending much on its companies, as we can see they are growing locally as well as global business activities. Going global implies that supply chains are no more local [43]. This is proven when firms spread their operations across the globe sourcing from and selling to different organizations and or people. This fact adds complexity to the supply chain and if this complexity is not properly managed it can result in disruptions and higher costs [11]. Local business might be encountering some issues pertaining to the domestic rules and regulations, socials, economics and political areas [12]. Those issues more or less can be anticipated by the business institutions as they have experienced and familiarized it before, less constrained due to the issues are still under control. As compared to global business, where all factors beyond the boundaries, business operations might be restricted and less powerful players will suffer losses and closing their business operations. A good understanding on each countrys policies should be addressed on so that the business can enter into the competition at the same level with the others [40]. The business should not just simply decide to put money into a business activity without prior background checking, if not, the money would not promise even a return in the future. Therefore, this paper intent to identify global supply chain management challenges followed by its solutions. Some countermeasures should be developed in order to address the challenges that arise from the global supply chain management. The management perhaps cannot mitigate the problems or issues totally, but, at least some prevention taken in order to overcome them. A profound and aggressive initiative should be started internally, combining the companys strengths and resolving the weaknesses. Right after the internal information has been found, the external information which related to the environmental factors where covering the threats and opportunities also need to be studied properly. Hence internal and external combinations will be the most powerful tool in mitigating the problem related to the supply chains. Later, the companies who operating extending the local business operation would not be disrupted anymore as they have done the analysis first before committing into the business operations. Such an approach means that the paper is not a rigorous review of all issues connected with supply chain management but rather an overview of selected issues and a starting point for anyone who would like to get more familiar with this exciting field. The structure of the paper follows its purpose. Each of the selected issues is reviewed and illustrated with a short vignette.
Literature Review 2.1. The Challenges in Supply Chain Management in India Since the paper focuses on what are the global supply chain challenges and solutions, hence we should begin on identifying the challenges and its solutions. The first scenario is from the country of India. The industry of India has been becoming the global manufacturing hub whereby its domestic and international markets have been widely portraying many opportunities to the world. Although, it would be much on bringing benefits to the country but generally there are some challenges on its supply chain. According to the research done by [1], there are many challenges faced in supply chain management in India. Initially comes from the suppliers. A lot of initiatives have been taken by the company to reduce the suppliers cost, responsiveness, reliability and its competitiveness. The supplier has brought many supply risks instituted towards handling companys order. The first of supply risks encountered by many business institutions in India is delaying in order receipt. The company or the business institution gets the materials ordered from the supplier which is considered too late. This issue is causing problem into companys production operation. It cannot even proceed to the next business operation which is considered as the most important task to do which is the transformation process before offering the product to the end user. Second supply risk is mismatch in quantity supplied. Due to ineffective system that was used by the supplier, many firms suffered on the cost of returning back false ordered materials to the supplier or the waiting time has been spent on the way back to the supplier. This second risk whereby entailed in the very first challenge of firms should be monitored closely by the respective suppliers so that the firm in India would not bear too much cost in supply chain. Furthermore, the third supply risk in supplier point of view was known as inferior quality damaged. The supplier had indicated clearly that the quality in the discussion process where showing some standards and attainment had been put into the materials. But, when it comes to the reality, the suppliers were not giving the right quality or even did not achieve certain standard of procedure in the supplier point of view [5]. The customers requirements which had become the factor in handling the downstream process also one of the challenges in Indian industry [18]. Each firm believed that the customer is the king of all, has the highest power rather than the firms who had offered products, and has the right whether to accept or reject the offers from the firms. This is tremendously showing that the customers always the priority of the firms before creating the products or services to them. The prominent problem is that the firms in India simply producing the products and services without doing some market research towards customers preferences. They failed to produce the product that fulfilling the customers needs and wants. This challenge is the crucial thing that the firms need to take into account when dealing with supply chain. Its not merely simply releasing the new products and services without considering whats going around the market. Supply chain management should meet optimally the customers requirements in order to work efficiently and achieving firms goals [28]. The firms who have failed to do customers screening will incur high possible cost as it is producing products and services which do not meeting the customers requirements. Sometimes, firms have done the customers analysis but still failed to satisfy the customer needs and wants. Probably this is due to customer day by day is becoming too complex to anticipate on its preferences. Therefore, the customers requirement has become one of the supply chain management challenges. This issue requires the firms to study the possible outcome thoroughly. If not then they may lose the customer in the future which categorized as the most important shareholders of the firm, where they opt to invest certain amount of money into the firms generally. Furthermore, challenge that faced by the Indians firms is the competition among the rivalry. Many new and existing firms in the market are competing each others in delivering the best products and services to the customers. Perhaps, those who have a very high initial capital might do more as compared to those who have less capacity and capability. The competition style is more to who put more efforts will be always becoming the champion and winner for the competition. The gigantic player will always dominate the market whereby spending much effort on the supply chain management such as marketing, logistics and transportation, materials and distribution management. A study by [19], has shown has shown that the less capable may be left behind and drowned useless. The things are these firms had spent money on some supply chains and at the end getting nothing. Some issues also may arise from the tight competition, for instance a company wanted to seek out for low transportation cost. Due to prior dealt with big company; the transportation dealer might not consider reducing its price to the company who needs lower transportation cost. Thus, by hook or by crook, the company should take and bear the high cost instead. This could be the challenge that faced by the firms in India nowadays. The next challenge in supply chain management faced by the Indian Industry is that when it has become as domestic and global market, the geographic distance indicated some issue to the firms which existed in India market. The terminology scarcity always present in the country. This term refers to a capacity that its lack, be deficient in, be short of, or require the most in the supply chain management. Many countries due to initiative in resolving the problem of scarcity have been seeking out many alternatives where taking in or bringing in some resources from the other countries [11]. This challenge can portray some risks on the rules and regulation, political issue, distance it takes, and cost of transporting the resources into the country. The geographical distance reflected that the flow of raw material from its origin to a destination will create some cost that may limit the firms ability to due to the separation between two places at the time. The long distance subjects to high cost whereas short distance bears lower operating cost. Another issue may arise from the geographic distance is the possible load units and the conditions in which they can be carried. Volume of load units is influencing the ability to move raw materials from one place to another place. This flow has to be negotiated between providers and the firms that require the raw materials from the provider which is subject to the transportation cost with the container to load the units. Initially, this could involve monetary exchange from the provider and the firms that using the service. Additionally, it is also implying the speed, the economies scale and technology used in dispersing the amount of information. Thus, geographic distance should be able to covers the issues which if not may lead the firms to lodge huge amounts of tangible and intangible efforts. Other than that the challenge found in Indian industry is the integration of supply chain. This is commonly implying where the specific strategies have been combined with the whole corporate business strategy. Many efforts have been allocated in identifying the internal strategies with the business vision instead of putting an effort in mitigating some issues arising from the external environment. Generally, the integration should not be internally merely but need to be done accordingly with the external environment factors [38]. In India, normally the Chief Executive Officer (CEO) would only rather concerns on how supply chain cuts its cost rather than exerting effort on combining internal and external environmental factors. The failure of combining between these two factors may lead to wasting money, time and effort in the future. Addressing both issues should be happened at a time to make sure that the firm can aim on one proportion. The information sharing was also found as a challenge in Indian industry. Almost all firms refused to share the information with the third party due to some reasons that they afraid one party can take advantage to. The abusing on the information was frequently happen as it believes that the other parties could use the information in leveraging its efficiency and capabilities over others [45]. This assumption being assimilated throughout many firms profoundly. Although two parties are the partners in the same industry and business, the cost data such as the price of production and raw materials had hidden from the firms knowledge. Due to monopolistic issue where one firm expecting the very best over the others, this company could exaggerate the information although the party has asked for that real information. Hence, the main issue here is in developing trust and cooperation among the partners is really difficult and complicated. 2.2. The Supply Chain Management Challenges in Todays Global Competitive Environment Nowadays, the competition among the business institutions in supply chain global competitive environment requires organizations not only to compete in their ability to enter new markets and achieve economies of scale but also in their ability to effectively administrate knowledge flows in an information-based economy [37]. Additionally, in order to increase competitiveness, challenges are faced in pursuing global efficiency, local responsiveness and at the same time effective knowledge and information transfer between subsidiaries. Business institutions not merely exerting efforts in lowering the cost but should be able to applying some
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