The Supply Chain Network involves all operations carried out from the creation of a product using raw materials to the final stage where it arrives at the consumer. Globalization has created the opportunity for companies to expand their supply chain networks from national to international territories.  It allows companies to reduce expenditure while increasing revenues. For instance, fashion companies such as Zara exploit cheap labor costs in China to double profits. Market mix flexibility; expansion of supply networks promotes increases production and supply. Unfortunately, this creates uncertainties on demand and prices within foreign markets. Global supply chain networks present several risks and management issues (Ayers, 2011). Therefore, there is a need to develop the appropriate supply chain designs that include risk mitigation strategies.

Each organization has the desire to grow and expand its territories as such; the supply chain remains a fundamental element of profit-making organizations. The supply chain is not only essential to the present operations of an entity but also the future. Globalization facilitates communication, technological advancement among others that increase production and effectiviteness of supply (Ayers, 2011). With the appropriate supply chain management strategies, globalization will open avenues for companies to grow and expand.

Ever since its inception in 1962, Walmart has experienced steady growth and is one of the most successful supply chain company. Its success is attributed to the company’s close-knit supply chain network. Walmart has developed a constructive relationship with its manufacturers who manage products within its warehouses. As such, the company is sure with 100% resupply of goods. Walmart has also invested in technology, to control different operations within the supply chain network. The company has also made strategic partnerships with its suppliers and uses cross-docking for tracking inventory.

References

Ayers, J. B. (2011). Globalization. Encyclopedia of Supply Chain Management, 457-458. doi:10.1081/e-escm-120047777

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