An efficient and effective supply chain plays a major role in the success of a multinational corporation (MNC). MNCs deal with a myriad of issues, including quality of raw materials, scarcity of materials, the locations where the materials’ ingredients or components are grown or manufactured, and the counterfeiting of materials (especially in the pharmaceutical industry). MNCs also face environmental challenges, such as tsunamis in the Philippines, monsoons in Thailand, and volcanos in Indonesia. Piracy and theft of intellectual properties are yet another set of issues that MNCs must deal with.61 Because supply chains, in many cases, are outsourced and subcontracted, controlling each point of the supply chain becomes a challenge. Although IT cannot solve all of these problems, it can provide timely information that executives in MNCs can use to quickly respond to any of these issues. MNCs are using data warehouses and analytics to analyze, pinpoint, and quickly deliver key information related to parts of the supply chain. RFIDs,
GPSs, and QR codes have significantly improved the efficiency of these supply chains. Ports America, for example, uses OCR cameras to scan each container, RFID tags to match the contents with the trucks, and GPS sensors to identify equipment locations and cargo movements. Computer networks and the Internet have created unparalleled connections throughout the world. Major logistics companies such as UPS and FedEx are using stateof-the-art information technologies to efficiently deliver products and services around the globe.62
Answer the following questions: 1. What are some of the challenges that MNCs face as far as intellectual properties are concerned? 2. What are some of the environmental challenges MNCs face? 3. How can information technology assist with the counterfeit problem? 4. How can information technology assist with logistics?