Disacussion Question 1: What is the significance of Globalization in Supply Chain Management?
Disacussion Question 2: Why are customer service and its related strategy so important for companies operating global supply chains? Do you think that customer service is more important than lower cost to the customers?
Disacussion Question 1. What is the significance of Globalization in Supply Chain Management?
John Coyle identifies globalization as one of the major forces to shape economies and supply chains (Coyle, 2017). While supply chains allow globalization to exist, it is globalization that allows supply chains to thrive. Globalization allows for companies to get the right products, at the right prices, from a wide range of people. Additionally, globalization allows companies to have a customer base that spans across the globe. This in turn allows businesses to flourish and be more competitive than ever before. Whoever is better able to work their supply chains most efficiently and gain the most consumer ground will come out on top. It is important to note that in opening up businesses to foreign partners and customers, you must also be keen to a whole new set of foreign laws and market dynamics. There may also be the added risks of terrorism and piracy (2017), not to mention the underlying forces of politics, trade, natural disasters, unstable marketplaces, etc. So, while globalization is extremely advantageous to domestic industries, it also brings a set of new problems to consider. Risk management and mitigation is vital in globalization. Yves Belanger and Yves Leclerc recognize the importance of making Supply Chain Risk Management (SCRM) an integral part of day to day operations (Belanger & Leclerc, 2013). They mention that creating thorough mitigation plans are not about scaring people within the organization, but bringing to them peace of mind (2013).
References
1. Coyle, John, Langley, John. (2017). Supply Chain Management: A Logistics Perspective (10th ed.). Cengage Learning.
2. Belanger, Y., & Leclerc, Y. (2013, November 6). Globalization Brings New Risks into the Supply Chain.
Disacussion Question 2. Why are Customer service in a global supply chain is important because it includes negotiating through differences in language, customs, traditions, currencies, and many other barriers. In a global setting, customer service refers to much more than the average person is familiar with. It doesn't necessarily relate to the end user, but instead to a processor or distributor and encompasses more businesses functions than warranties or problems.
Different countries will likely always require some extent of customization to a product and customer service (or the "soft" issue as Coyle refers to it) is the bridge between what a customer expects to receive and what a company produces. "Soft" problems such as as mistranslation or errors in conversions between systems like metric and imperial can cause severe problems in real life.
It is difficult to say which is more important, customer service or lower cost. I believe it's likely that the two will always need to be balanced depending on the situation. Customer service is a necessity but it may be cost prohibitive in certain situations such as a 'one time buy' or for cheaply made products. The flip side of the coin though is that without customer service a customer can't be exactly sure that they will receive the right product made to the right specifications that they require. Which is more important will depend on the customer, producer, product, and situation.
Works cited:
Coyle, J.J., Langley, C.J., Novack, R.A., & Gibson, B.J. (2017). Supply Chain Management: A Logistics Perspective. (10th ed.). Boston, MA: Cengage Learning