Question

Explain international supply chain with suitable example

Answer 1

International supply chain management and logistics makes reference to the management or control of both physical and information flow concerning a wide variety of goods, tracking them from the point of their origin and until they reach the destination. This management is done with the help of a number of tools, which provide support when it comes to planning and implementing the set plans for the efficient flow of the supply chain.


The definition of the International Supply Chain Management is similar with the one of supply chain management, which is the management of the flow involving goods or services, represented by transportation and storage, by inventory and shipping schedules, beginning with the acquisition of raw materials to providing the final product to the end consumer. In the case of International Supply Chain Management, this flow assumes the involvement of at least one company from abroad, with the purpose of creating a network composed out of trans-national companies.



The practices of SCM are not only benefited by the reduction of spending, but also by incrementing profitability in investments, commercial growth and reducing the overall cost of doing business. Businesses faced with overruns, due to bad supply chain management have a higher propensity to being affected by economic crises; therefore the difference between a struggling company and a successful one can usually be seen in an adequate and representative use and upkeep of their supply chain from beginning to end.

There are many examples of prosperous companies that have correctly developed the supply change management concept and that enforce efficient practices. These are some examples.


7-Eleven.

7-Eleven is an international chain of convenience stores, based out of Dallas, Texas. The currently have around 58.308 in 16 different countries, most of them franchises. They are mainly focused on selling basic food items, medicine and toiletries and magazines, but this all depends on their host country. Their main stores are located throughout the United States and Asia. They supply a huge variety of customer needs 24 hours a day in most locations. Their reach, capacity and management have made 7-Eleven one of the biggest and most productive companies in the world.

Zara.

Zara is one of the main clothing and accessory retailers internationally based in Spain. They are mainly focused on new, trendy and cutting edge fashion for men and women alike. Currently it operates in 88 different markets worldwide, their main distributors are in Madrid and Zaragoza. Zara is known for its energy saving efforts and techniques, as well as their minimization and efficient waste management. This commitment with the environment is paramount within their operations across all plants and departments and has helped create a collective conservation consciousness among members of the staff. In their fabrics, they used environmentally friendly fabrics like organic cotton amongst others. Their textile production comes from Spain, the Far East, India and Morocco. Biodiesel fuel is used to transport their products, according to their environmental policies. The have a great concern for animal treatment and under no circumstances, use animal products that come from animals that were not treated ethically or sacrificed for the sole purpose of commercializing their leather, skin, horns, feathers, etc. While other retailers use third-party production, Zara produces about 60% of the fabrics they use and use cutting-edge technology to cut and measure the handling of fabric so this is done in a precise and efficient manner, thus reducing waste overall.

Amozon
Amazon is a US electronic commerce and cloud computing company. Their headquarters are based in Seattle, Washington and they are the largest internet-based retailer in the United States. Amazon was one of the first companies that started selling book online. Currently their range of products doesn’t stop there; they also sell music, videogames, shoes, clothing, luggage and many other accessories. Amazon offers about everything you can think of and their variety in offers and products along with their customer driven shopping and recommendations is a hit with customers. One of the reasons why Amazon can have such a wide spectrum of products is the fact that they are not limited by physical spaces, since they don’t have actual stores. Their supply chain goes from the lowest levels of inventory, through the logistics of the order itself all they way up to an outstanding distribution chain of their products in an international scale.Amazon can currently ship close to 10 million different products. This diversity gives it an edge against competitors and makes it a perfect example of what efficient supply chain management can accomplish.

Answer 2

International supply chain management and logistics makes reference to the management or control of both physical and information flow concerning a wide variety of goods, tracking them from the point of their origin and until they reach the destination. This management is done with the help of a number of tools, which provide support when it comes to planning and implementing the set plans for the efficient flow of the supply chain.