Global Production and Supply Chain Management
Please provide a brief synopsis of a pertinent article that you read and share how it applies to a concept or theory we have discussed in this course.
The article ‘ Managing the Strategic Supply Chain’ by Banham positions that technology has made it easy for suppliers and consumers in the modern world. It is possible to predict the products required by consumers and meet the demand through an effective supply strategy. The increasing level of effectiveness in the supply strategy resulted in more risks than anticipated (Banham, n.p). The chances associated with the supply chain are so many, including those associated with transport, labor strikes, and other man-made disasters. Prediction of the risks has made creating contingency plans as backups easy. The main focus has been on understanding the risks and weak links in the supply chain.
Some of the key contingency plans include having a backup supplier if the primary supplier fails to meet the needed demand. Carrying out due diligence has made it possible to establish the strength and weaknesses of each supplier. Having more than a single supplier has been a way of spreading the risk. Sharing the risk among the suppliers and stakeholders is a mitigation strategy that ensures fewer losses (Banham, n.d.). It is also possible to transfer the risk through insurance plans. The aim is to secure the supply chain to the point that meeting the consumers’ demand is not compromised.
The article applies to the theory as the focus is on risk mitigation. The theory posits that risks are not bad for businesses, provided they are effectively managed. On the other hand, the article discusses some of the strategies that can be used to manage the risk (Banham, n.p). Management of the stake provides the needed competition and ensures the supply chain business remains afloat in the market. A combination of the risk and contingency plan provides a basis for forecasting and making future predictions.
References
Banham, R. (n.d.). Managing the Strategic Supply Chain. The Wall Street Journal. Retrieved from Managing the Strategic Supply Chain — Managing Risk — Presented by Liberty Mutual (wsj.com). Accessed 12 April 2021.
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International Business Relations
Throughout the course, you have been required to read the eText, complete case studies, watch videos, and read articles.
Global Production and Supply Chain Management
- Global Production and Supply Chain Management