As markets become increasingly competitive, therefore, the direction adopted by
supply chain managers should be in response to the characteristics of global
competition, particularly the move towards standardised yet customised product
and service offerings, shortening product lifecycles,
outsourcing
and offshore
manufacturing, and the convergence between marketing and manufacturing
strategy. It is important to note that international marketing takes the activities of
the company beyond exporting by becoming more directly involved in the local
marketing environment. The implications for supply chain management is that the
exporting company manufactures and distributes from its domestic base but also
may require both manufacturing and logistics facilities operating in foreign
territories. All distribution decisions, with regard to warehousing, transportation,
inventory control and order processing, also need to be consistent with the
product, promotional and pricing strategies for the global market. The task of co-
ordinating all these activities in the global market place is complex as there are
many factors that could impact on the flow of materials and products. However,
logistics has become a potential source of competitive advantage for companies in
the global market place. Effective management of logistics can save the company
time, costs, and increase its reliability in the global market place. Particularly
important with regard to the role of global logistics in a company's expansion
strategies, and in addition to the preceding discussions, are considerations of
structure
and
control,
customer
service
management,
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