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Supply Chain Management - Essay Example

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1. Describe how global supply chain management acts as a driving force in global markets. Include value capture and value creation in your discussion as interactive dynamics that link the internal and external firm business processes. In the global marketplace, firms are challenged by the intensive need to reduce costs and thus achieve efficiency; this can be done through better collaboration and integration of the supply chain partners (Martin, 2005)…
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Supply Chain Management

Value creation through global supply chain management is achieved through strategic integration of all members of the supply chain under the scope information exchange and understanding of the changing global consumer (Flint, 2004). According to McAdam and McCormick (2004) value creation occurs when organizations develop new ways of better addressing the customers’ needs and customer satisfaction; the supply chain which acts as a source of information can increase value creation. Especially in the case of global supply chains, effective management of the flow of processes and functions indicates a better coordination of resources (including learning), which in turn provide the potentials for accumulating greater information on the global marketplaces. Given that global markets are underpinned by different cultures, different institutions and different structures, management of the global supply chain becomes the most important tool for effective operations. Value creation is therefore achieved through global supply chain management through greater synergies and integration of the supply chain partners in communication and information exchange, which allow faster response to the global changes in consumer behaviour. ... Read More
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