7 Things You Need to Know About GSCM
Supply chain management is the lifeline for organizations and specifically e-commerce stores. For the uninitiated, supply chain management is the process to streamline all the operations, right from procurement of raw material to end-delivery to the customers in an efficient manner. Now you may ask what Global Supply Chain Management (GSCM) is. Well, GSCM works on exactly the same principles as supply chain management, but the only thing is that the scale of operations is international.
If you are planning to pursue a career in GSCM, here are seven things you need to know about:
- More Challenges
Ask any supply chain management professional about the challenges in their field, and they will have a lot to tell. You have to manage people, processes and technology perfectly to implement successful supply chain management. However, when the supply chain management goes global, the number of challenges takes a new dimension and makes the existing set of challenges even more complicated. There are language barriers, cultural differences, regulatory norms, environmental compliance, time zone differences and currency fluctuations to be taken into consideration. For instance, if you are shipping to another country, you have to ensure that the packaging and communication in a language that is native or commonly known in that country. If there are any customer queries or pressing issues at hand, the time zone difference can delay the handling of matters.
- Technology Adoption
According to a Gartner report, artificial intelligence, blockchain, advanced analytics and Internet of Things are the major technologies that are driving competitive edge for global supply chains. Computerized shipping and tracking also play an important role in simplifying logistics and reducing errors. Another breakthrough technology that is making a powerful impact in GSCM is Radio Frequency Identification (RFID). Organizations can place RFID chips on every product so that they can be tracked easily, thereby giving maximum visibility and scope for plugging loopholes.
Technology is crucial to the success of GSCM and organizations must be ready to adopt it. Hence, these days, there is a high demand for GSCM experts. This is a reason why you should enrol in only that global supply chain management course which throws valuable insights on this subject.
- International Reputation
There is no doubt that customers are king and if they are dissatisfied, there are loopholes in your supply chain management. Now, when you are selling domestically, it may be a tad bit easier to handle customer grievances. However, when your business operates across geographical barriers, even a single unhappy customer can ruin your reputation in the international markets. So, you have to exercise extra caution in GSCM while catering to global customers.
- Risk Management
Risks are unavoidable in GSCM given the number of factors that it is dependent on. The political/economic/social stability of countries, transport logistics (seaports, airports) and customs clearances increase the vulnerability of GSCM to risks. However, it doesn’t mean that risks can’t be mitigated and crisis can’t be handled proactively. A well-formulated and well-documented risk management strategy is very necessary for GSCM organizations. It can help organizations to create back up plans and plan disaster management for eventualities.
- Recruitment
GSCM needs to run like a well-oiled machine. Organizations need to hire people who are not only experienced and skilled in supply chain management but also understand international operations and cultures deeply. This way, if at all any disputes arise, they can be handled efficiently by these people.
It is not only the quality of white-collar workers that matter in GSCM. The blue and pink collar workers are also equal participants in the success of GSCM. After the e-commerce boom, there is a huge demand for assembly line workers, warehouse staff, truck drivers, delivery staff and other ground-level employees. These are also the people who can go on labour strike if they are not happy with salaries, incentives and working conditions and bring operations to a halt anytime. So, labour recruitment and management is a major challenge in GSCM.
- Staying Abreast
International scenarios are very dynamic – they can change anytime and affect the GSCM either favourably or unfavourably. Hence, you need to stay updated about international laws, regulations and best practices along with the political and socio-economic conditions of the countries where the organization is operational. It is also imperative to ensure that your company adheres to all certifications and compliances that are mandatory for GSCM.
- Keep Plan B Ready
No matter how efficiently and proactively you handle GSCM operations, there are bound to be setbacks. At such points in time, your plan B can come to rescue provided you have one! So for every plan A, you must also chart out a plan B simultaneously. Even if plan B is about exiting your business from a country, you should not be apprehensive. Sometimes, exits are better than losses and damage to the market image.
If you want to learn more about the above factors, you must enrol in global supply chain management course.
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