MANAGING THE GLOBAL PIPELINE

Managing the Global Pipeline
Name:
Institutional affiliation
Globalization on Supply ChainGlobalization is a process in which businesses create trends, which in turn increase the connectivity and interaction of people worldwide. Usually, it is accomplished through improvement in infrastructure and technology. Globalization forces companies to take into account the changes that are happening outside their country of origin (Basu and Wright, 2017). To this end, they have to be well versed with the world economic trends, technological advancements, innovations, and competitive situations in other foreign countries.
Effects of globalization on supply chain management
Supply chain management of an organization deals with the management of the movement of goods from raw materials to the final product in the market. With a company going global, some of its activities in the supply chain become more complex (Christopher, 2016). Further, it causes companies to overproduce goods and services, therefore, increasing competition, making companies reduce their costs in order to stay above the competition.
Pros on managing a global supply chain
Globalization has created a number of benefits to the supply chain of an organization. Firstly, it enables firms to create broader markets across the globe. The company accomplishes this by creating integrated networks that enable the firm to meet with suppliers who help reduce production costs. Secondly, through technological innovations, the firms produce new goods and services which consequently help them in making new markets and offer products at a lower price (Christopher, 2016).

Cons of managing a global supply chain
Although globalization has proved to accrue some benefits, it also poses some challenges to the firms. For example, it has made it hard for firms to predict the supply and demand in the market. Additionally, it has made the supply chain to become more complex by allowing for an increase in the number of suppliers, customers, and products across the globe (Christopher, 2016).
References
Basu, R. & Wright, J. (2017). Managing global supply chains. New York: Routledge.
Christopher, M. (2016). Logistics & supply chain management. Harlow, England New York: Pearson Education.