Global Risk Management And Supply Chain †Myassignmenthelp.Com

Question: Discuss About The Global Logistics Risk Management And Supply Chain? Answer: Introduction Supply chain can be defined as the sequence of processes, which are involved in the production and distribution of the goods. This study will choose retailers for discussion the factors of their supply chain. In the global market, retailers are more likely to be influenced through the global market forces. The study will discuss the global market force and risk of supply chain of the retailers. Apart from that, the study will also discuss the development chain, supply chain and strategies of the retailers. Discussion Most of the retailers are more incline to expand their business in international markets. In such global business, retailers are to build global supply chain networks for establishing strong supply chain networks (Pagell Shevchenko, 2014). However, in global market, retailers face some global market forces for their global logistic system. Political stability of different countries can impose several restrictions on the supply chain of the retailers. Moreover, changing government rules and regulations of the foreign Government can impact on the supply chain management strategies. According to Seuring, (2013), volatile fuel price in the foreign market can often impact on the cost of overall supply chain activities of the retailers. Moreover, increasing fuel price of in the international market actually enhances the cost of the overall supply chain network. Apart from that, Ellram and Cooper, (2014) opined that currency fluctuation is one of the most important global market force, whi ch have major impact on the supply chain of retailers. Retailers face some risks in their global supply chain, which can affect the business performance of the retail organizations. Volatile fuel price actually increases the cost of overall supply management with frequent increase in the fuel price. Therefore, the retailers can face less potentiality of business profitability. The retailers should crucially choose the international market, where fluctuation of fuel price has less impact on the supply chain. As per Heckmann, Comes and Nickel, (2015), rise of technology of different international market can also be risky for the supply chain of the retailers. The less technically advanced retailers often face compatibility issues in advanced technology of the developed countries. Therefore, these retailers can manage this risk through advancing their technology towards aligning with the advanced technology of the developed countries and perform smooth supply chain in those countries. While considering the development chain of Retailers, it can be seen that the retailers mostly follow product architecture scheme, where the functional elements of products are arranged into physical chunks. As per Li, (2013), retailers always crucially choose making and buying decisions for their supply chain. Retailers are mostly engaged in getting supply of different brands in their organizations. Therefore, choosing right brand to buy is the most important thing for enhancing the economies of scale. On the other hand, Garcia and You, (2015) opined that the retailers always maintain long-term and collaborative relationship with their suppliers for getting price discount from those suppliers. In this way, retailers can manage effective development chain even in global market. Global Retail supply chain management defines the process of managing the entire supply chain of the retail organizations. Retail supply chain is slightly different from other supply chain in regards to volume of product movement and fast moving nature of the products of retail industry. According to Ellram and Cooper, (2014), the retail supply chain needs to be monitored very closely and free from any kinds of defects as the cycle time is very low. Furthermore, continuous movement of materials across the supply chain is extremely important for the success of retail industry. Moreover, there should be perfect interlinking between the inbound and outbound logistics of the retails organizations for timely delivery of the products to the customers. While considering the strategies of Retailers, it can be seen that retail organizations follow demand driven operating model in supply chain management. In this model, right prediction and contingency planning is taken for optimizing the production process and material sourcing. According to Pagell and Shevchenko, (2014), retailers also have taken agile and adaptive supply chain with rapid planning and execution. Moreover, for fine-tuned supply chain operations, the retailers also remain adaptive in aligning with changing technologies and other market changes. On the other hand, Ellram and Cooper, (2014) opined that recent retailers are more inclined to take sustainable approach in supply chain management. Through this strategy, the retailers are focused on protecting the environment for aligning with environmental laws towards sustainable business performance. Conclusion While concluding the study, it can be said that the supply chain is highly affected through the market forces like changing government rules and regulations, currency fluctuation, volatility of fuel price and others. In the global market, the retailers can face the risk of enhanced organizational cost with the currency fluctuation and volatility of fuel price. Most of the retailers used agile and adaptive supply chain model for aligning with the global market forces and maintaining sustainable supply chain. References Ellram, L. M., Cooper, M. C. (2014). Supply chain management: It's all about the journey, not the destination.Journal of Supply Chain Management,50(1), 8-20. Garcia, D. J., You, F. (2015). Supply chain design and optimization: Challenges and opportunities.Computers Chemical Engineering,81, 153-170. Heckmann, I., Comes, T. Nickel, S. (2015). A critical review on supply chain riskDefinition, measure and modeling.Omega,52, pp.119-132. Li, L. (2013). Technology designed to combat fakes in the global supply chain.Business Horizons,56(2), pp.167-177. Pagell, M., Shevchenko, A. (2014). Why research in sustainable supply chain management should have no future.Journal of supply chain management,50(1), 44-55. Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management.Decision support systems,54(4), pp.1513-1520.