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Strategic Balance On Global Supply Chain

By Peter Roberts


Supply in businesses is facing a lot of challenges to sustain and penetrate to the desired market all over the word. This is because most companies are trying to get their products and services outside their residential countries to other parts of the country but spend little resources possible to achieve this. However, the global supply chain has become difficult since there are many different plans a company must come up with to attain the speed required for migration.

There companies are faced with many factors which discourage them and make the plan hard hence lowering the speed. The factors consist of transportation of goods and service and the energy required reaching the target market worldwide. Therefore, it is important for the company to draw a strong strategic plan on how they are to achieve the goal.

To begin with, the transportation of goods from one country to another from the manufacturing industry should be lowered and made accessibly easier. This will ensure more sales hence more income to both countries. The mother country and the production country will benefit from this since the manpower will be hired from the citizens. Delivering of goods to the market on time will ensure their availability hence increasing employees due to demand in product hence increase in production.

The leading time for managing products is another thing which should be taken care of in beating the chain. Those companies which produce their products from outside the country are advantageous since they enjoy low labor cost but they strive in lead time which extends. Before you start planning for the production process to begin, it is advisable to consider this fast very carefully.

The foreign exchange rate is another discouraging matter and they should be stabilized before the company incurs great loss. This is because if there is a great difference in exchange rate, the company will incur high production cost due to resources needed than profits from sales. The channels used in transportation are also important to be evaluated and minimized to lower the transportation cost.

The companies are supposed to balance their production since the need for making sure they produce in same quantities on different goods will favor the market and they will be able to compete with other same industries in the market. This is where the goods which spend more cash and resources as well as consumes a lot of time are stopped to first fight with the current market trend.

Every business is aimed at making more sales hence senior managers are working day and night trying to figure out ways to make goods reach their destination at a low cost. Therefore, there is need for holding a meeting for all the managers from different industries to discuss the trend and look for a way to reduce the transport and production cost in order to deliver their products on time and at a low cost to potential customers. From the meeting, they should also come up with strategy on how they will be ensuring that all the process for moving goods are monitored in order to weigh their target goals.

Lastly, the management should be keen in looking for an alternative or quicker way to getting their products to the market. This will ensure the companies which deals with perishables will get their produce to the market quick enough and their products will be in good conditions and they will be consumed before expiry date. If this does not succeed, the, the market will be destroyed and many companies will lose customers hence loss of jobs during the industry closer.




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