The Globalization of Business and the supply Chain Management Concept
Changes in information and communications technology, international trade liberalization and advances in transportation have enabled the rapid spread of the supply and distribution networks of businesses out of local and national constraints and onto a global stage. This has dramatic implications for all businesses and not just for the large multinational corporations with their global operations dispersed across the world.
These days, even for small and medium sized businesses (SMEs) to compete successfully, means dealing with multiple partners such as material suppliers, transport carriers, logistics service providers, distributors, wholesalers and retailers in new and innovative ways. This new complexity, particularly when it takes place across international borders, is giving rise to new risks and complexities.
Supply Chain Management (SCM) theory provides a framework for dealing with this new paradigm, but how can small and medium sized businesses apply these principles in ways that are pragmatic, practical and lead to measurable business benefits.
As a prerequisite for success, three key qualities are required, Competence, Discipline, and Confidence. All three of these qualities are essential. Absent any one of these and you will not be able to fully leverage the existence of the other two.
Competence refers to the business and technical knowhow that you need to be able to conduct business in your chosen sector.
Discipline refers to the processes, standardization and measurement that ensure consistency in quality and service.
Confidence arises from the set of cultural attributes and interpersonal skills, knowledge and attributes that enables your organization to enter into and successfully manage relationships with other organizations both nationally and internationally for competitive advantage.
If you didn’t have the required competence and discipline to conduct business in your sector, you probably wouldn’t be in business today. Consequently, among small and medium sized businesses, what is most often missing when it comes to leveraging the full potential of Supply Chain Management is confidence.
Those businesses that invest to acquire the skills and attributes that underpin the confidence to build and sustain these crucial supply chain relationships to grow, innovate and diversify will avoid the risk of being outmaneuvered by aggressive outside players landing in their home market.
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