How to set-up a successful global Supply Chain Management?

The establishment of a Global Supply chain and the management there of is one of the most complex items that can discussed and has many varying and wide ranging opinions. One of the first questions that needs to be asked is "are elements of the supply chain are going to be outsourced to 3PL's or 4PL's". If this is "yes" then to properly manage this a control tower will be required which feeds vital data and KPI's back to the parent company.

 

If on the other hand the global chain will be self managed then one has to look at the complete infrastructure and reporting structure behind the management of the global supply chain. Global, as the word implies is a wide reaching supply chain that spans across continents and countries. This brings with it the addition of a complex internal management system and factors that cut across cultural and language barriers. This is one of the reasons that 3PL's and 4Pl's exist, basically to distribute and manage sections of the supply chain. This in turn allows the company to focus on the their core business and not to dilute expensive resources into moving the goods from A to B when this is the core business of specialized transport/warehousing/3PL and 4PL companies. A variable within the equation of a Global Supply Chain is always where are the good manufactured and where are the markets. The locations of both the manufacturing and customer locaitons will drive the supply chain and how best to move the goods i.e road, rail, sea or air.

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