Page 6 - Supply Chain Magazine

3. The “extended supply chain” will provide extension for business process innovation as its
focused towards outcome
4. Extended solution landscape involving HCM, CRM, Procurement, Executives and
different delivery mechanisms – beyond conventional supply chain definitions

Bibliografía
Ferrari, A.. (2015). “Extended Supply Chain” Is The New Supply Chain. Abril 5, 2020, de
Supply Chain Matters Sitio web:
https://theferrarigroup.com/extended-supply-chain-is-the-new-supply-chain/

Emily Dawn Szajda. (2017). What is Supply Chain Management, and Why is it Important?.
05/04/2020, de GBSB Content Manager Sitio web:
https://www.global-business-school.org/announcements/what-is-supply-chain-management-
why-is-important

What is the impact of globalization on the supply chain?

A global supply chain management system is not limited by the geographical boundary
of a particular area or nation but addresses a company’s global operations. Why do
companies go for global operations? The reasons can be many. One major reason is
business expansion. This is the driving force that makes a company decide in favour of
a global operation. However, fierce competition and demand for better products at
affordable prices have made many MNCs to relook and redesign their global operation
system. The idea is to provide better products to consumers thereby increasing their
market share. So every MNC tries to have a time bound system in place to oversee
everything starting from getting raw materials to manufacturing, inventory, order
management and ultimately distribution and delivery to the customer. The whole
process is integrated and functions in a seamless manner.

The global supply chain management system has to be a cost effective and efficient
way of doing business. The entire process starting from procurement of raw materials
to the distribution of the finished product has to be cost effective. Therefore many
companies open up overseas manufacturing units and service centers to manufacture
products on time and provide timely service to its customers.

The positive trends:

1. Better brains at cheaper cost: in some countries, a company can have a
cheaper labour cost as compared to some other developed nations.This
is a lucrative option for a company. That is why many MNCs have
outsourced a part of their operation to other countries where they can
reduce the cost of operation without compromising on quality.
2. Better Products for Consumers: as it is a global market and each
company is trying to increase its market share, the key to success is