I’m working on a supply chain discussion question and need support to help me learn.
One way of evaluating the effects of government intervention is to examine each nation’s level of economic freedom, defined as the “absence of government coercion or constraint on the production, distribution, or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself. In other words, people are free to work, produce, consume, and invest in the ways they feel are most productive.”
2-A worldwide supply chain comes with a slew of dangers. Others are like domestic chains, although others are exclusive to the global market. Any of these dangers can be mitigated to some degree. Forecasting precision, schedule implementation, and supplier efficiency, for example, all have a level of monitoring (Simchi-Levi, 2007). Both external and internal considerations play a major role in the organization. The former is used for situations that a firm cannot control and that have an impact on the business owner’s and partners’ business decisions, while the latter is used within the company and has an impact on its efficiency and operations policy
The principle of restrictions reflects on the various conditions that obstruct the accomplishment of the organizational objective. This theory focuses on minimizing these variables at all costs to make the restrictions less severe, allowing for better preparation, execution, and, ultimately, an increase in the profitability guide (Kilen et al., 2012).
Since people’s preferences can decide the wedge between different groups’ consequences and perceptions, the economic result of their decisions can be prejudice. For example, if product owners do not want black workers working on their products, companies will be forced to reduce the number of black employees in their workforce to retain customers. While the economy is in a state of recession and economic signals are clear, expectations of the economy may be assumed to exogenously affect political approval; but, when the economy is in a more normal cycle of gradual growth and economic signals are more complex, this is not the case. Chzhen, Evans, & Pickup, (2014).
Companies should plan of time to minimize any of these threats. Each corporation should first conduct a risk assessment. They make a list of possible threats and rank how detrimental each one will be to the business, as well as how likely it is to happen. A versatile approach is another option that has been listed. When an organization employs many vendors and distributors from various countries, this is known as globalization (Simchi-Levi, 2007). They will pass the job to a new supplier that is still doing the same work if anything goes wrong with one supplier or producer. It would result in an uptick in production from the alternative factory, but it would allow the company to continue shipping the goods with minimal disruption. In the event of political instability in a region, this approach would be beneficial. The solution is to look at the underlying incentives that contributed to the crisis and to back up the hypothesis with results. Tarr (2010).
Chzhen, K., Evans, G., & Pickup, M. (2014). When do economic perceptions matter for party approval? Examining the endogeneity of economic perceptions before and during the economic downturn. Political Behavior, 36(2), 291-313. doi:http://dx.doi.org/10.1007/s11109-013-9236-2
Killen, C. P., Jugdev, K., Drouin, N., & Petit, Y. (2012). Advancing project and portfolio
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Managing Risk in the Global Supply Chain. (2014). Retrieved from
SIMCHI-LEVI. (07/2007). Designing and Managing the Supply Chain, 3rd Edition.
Retrieved from https://online.vitalsource.com/#/books/1259219984/
3-The below are the risks that the global supply chain faces: Change of policy and government, Volatility of the economy, Environmental vulnerability, Cyberattacks, Connectivity, Intelligibility and Accuracy data, Continuity of supply and transport failure, and Cyberattages (Naudé & Badenhorst-Weiss, 2020).
The consequences of the supply chain delivery are distribution delay, Rising logistic costs, Long output time, Unsatisfactory customer service, and Inadequate inventory management (Naudé & Badenhorst-Weiss, 2020).
The bottleneck determines the supply chain’s throughput. A bottleneck in a supply chain refers to the services that take the most time to operate to meet a specific demand. If bottlenecks are not identified early enough, the manufacturer will lose an opportunity to maximize throughput (Begeç & Arun, 2020). Many times, electricity is used to save a small amount of money, but a significant cash flow opportunity is lost due to a failure to identify bottlenecks. Cost per hour on a bottleneck equals a one-hour delay on an entire supply chain, as well as a loss in throughput for the whole of the supply chain.
Supply chain management is a critical component of the business operation. When a company’s supply chain is effective, it will reduce total costs and increase profitability (Alvarado-Vargas & Kelley, 2019). In addition, it will aid in low-value-added production tasks, lead to industrialization, and boost economic growth rates.
The following steps can be taken to mitigate these risks:
Conduct a business impact analysis.
To be able to survive any possible supply chain delays, the company must be organized. To be prepared, the organization must consider and forecast the impact of any impacts on business operations and then schedule accordingly (DuHadway, Carnovale & Hazen, 2019). To recognize its exposure to supply chain risk, the organization must conduct a systematic analysis of its business, procedures, employees, vendors, consumers, and market climate.
To do this, the organization should perform a rigorous market effect study of supply chain risk. This will assist you in understanding your future vulnerability to danger and dealing with the consequences of any disturbances (DuHadway, Carnovale & Hazen, 2019). First, identify the main business processes and the tools and activities required to manage the company. Then consider how supply chain disturbances can impact these critical elements.
Companies will measure and prioritize supply chain uncertainties by determining which market practices may be more impacted by supply chain disturbances (DuHadway, Carnovale & Hazen, 2019). This encourages you to concentrate your resources on those who would have the most effect on the bottom line.
Evaluate and keep track of current and current vendors.
Assessing emerging vendors and carefully tracking others that are still an essential part of the supply chain is critical to identifying supply chain disruption and proactively managing it (DuHadway, Carnovale & Hazen, 2019). Assessing new vendors thoroughly would not only help to reduce supply chain risk. It would also put the company in the most robust shape to collaborate with vendors to increase quality standards.
To further reduce supply chain risk, provide protection provisions in all supplier agreements (DuHadway, Carnovale & Hazen, 2019). In addition, proactive aspects such as an emergency management strategy and a data retention framework will aid in both preventing and mitigating the impact of supply chain disruption.
Reduce supply concentration
Reduce the reliance on single supply chains to help minimize the possibility of supply chain interruption. Identify and cultivate partnerships with alternate primary and secondary suppliers (Colicchia, Creazza & Menachof, 2019). Determine which suppliers would be the better replacement sources if your chosen suppliers were to fail.
Select vendors from various regional areas. Look for those who supply through secondary port locations. While cost can be the primary motivator for supplier position, having a broad base of suppliers would be beneficial when a specific country or area experiences a disturbance.
Collaborate with the vendors
Make it a point to cooperate and engage with the vendors. For example, create a sharing forum and a messaging system to help with knowledge exchange (Colicchia, Creazza & Menachof, 2019). This will help to minimize supply chain risk, but it will also help reduce costs, reduce mistakes, and promote cooperation on issues such as logistics and defense.
Present cyber risks to the supply chain in a proactive manner.
Throughout a supply chain, information and security are frequently shared. This ensures that the cyber defense of every company within the chain is just as secure as the weakest link (Colicchia, Creazza & Menachof, 2019). Unfortunately, cybercriminals find the supply chain organization with the worst cybersecurity and exploit vulnerabilities in their networks to gain entry to other participants. To ensure the integrity of your supply chain, both parties must implement reliable, organized security measures.
Alvarado-Vargas, M., & Kelley, K. J. (2019). Bullwhip severity in conditions of uncertainty: Regional vs global supply chain strategies. International Journal of Emerging Markets, 15(1), 131-148. doi:http://dx.doi.org/10.1108/IJOEM-02-2017-0050
Begeç, S., & Arun, K. (2020). The bottleneck of intrapreneurship: Are social positions and held expectations constraints in organizations’ entrepreneur process? A conceptual view. Journal of Entrepreneurship in Emerging Economies, 13(1), 131-151. doi:http://dx.doi.org/10.1108/JEEE-08-2019-0120
Colicchia, C., Creazza, A., & Menachof, D. A. (2019). Managing cyber and information risks in supply chains: Insights from an exploratory analysis. Supply Chain Management, 24(2), 215-240. doi:http://dx.doi.org/10.1108/SCM-09-2017-0289
DuHadway, S., Carnovale, S., & Hazen, B. (2019). Understanding risk management for intentional supply chain disruptions: Risk detection, risk mitigation, and risk recovery. Annals of Operations Research, 283(1-2), 179-198. doi:http://dx.doi.org/10.1007/s10479-017-2452-0
Naudé, R.,T., & Badenhorst-Weiss, J. (2020). The challenges behind producing a bottle of wine: Supply chain risks. Journal of Transport and Supply Chain Management, 14 doi:http://dx.doi.org/10.4102/jtscm.v14i0.471
Tarr, D. G. (2010). The political, regulatory, and market failures that caused the US financial crisis: What are the lessons? Journal of Financial Economic Policy, 2(2), 163-186. doi:http://dx.doi.org/10.1108/1757638101107021