The Influence Of Globalization On Supply Chain Management

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Globalisation has brought many organisations to review the way they are doing business. With increase competition on the world market and the evolution in customer behaviour and requirements, companies are developing new strategies in order to meet customer satisfaction. Customer needs are being met in a more personalised manner (Pepper and Rogers 1999, Jensen 1999) as the world markets are becoming more distinctive, and according to Brown and Eisenhardt (1998), in general, the changes in the business world keep increasing. Nowadays, competition is not restricted between organisations only, but it has spread to be among their supply chains as well (Shatat and Udin, 2012) Many companies have been forced to reconfigure their supply chains in…show more content…
The Council of Supply Chain Management Professionals (CSCMP) reports that supply chain management includes both the planning and management of all activities involved from extracting and transforming raw materials into finished products until it is delivered to the customer. This implies that supply chain combines supply and demand management within and across…show more content…
In doing so, they have to adapt themselves to the changing external environment; thus forcing them to revisit their business operations and supply chain. Enterprise Resource Planning systems have helped many organisations to develop and improve their supply chain effectiveness. Knolmayer et al. (2002) mentioned that technology is a critical element required for the coordination among departments and organisations in the Supply Chain. “An ERP system could potentially enhance transparency across the supply chain” and “there is reason to believe that ERP adoption could be associated with significant gains in supply chain effectiveness” Akkermann et al (2000). A “Delphi study” was carried out in 2000 by Akkermann et al., among 23 Dutch supply chain executives who have adopted ERP system, to assess about its’ strength and weaknesses with regard to the challenges in business and supply chain management. They observed that ERP was contributing positively to only four out of twelve supply chain issues namely: • Customisation of goods and services • More standardised information and
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