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5 examples of the global supply chain

English

25 August 2022

We will try to define what a global supply chain is, also called a global supply chain. Global supply chains are varied, dynamic and complex organizational structures that are constantly evolving in order to adapt to the requirements of the global market. They are also described as global production networks or global value chain.

Consequently, we can say that all the terms used refer to the same thing. In other words, they deal with the same basic aspects of production and trade across or beyond borders. They are therefore considered synonymous.

Thus, global supply chains have become the usual, common, everyday way of organizing investment, production and marketing of products worldwide. What defines a globalized economy.

A cross-border organization whose main activity is to produce goods and services and get them to consumers, making use of different inputs development and production stages plus the delivery and provision of those services, is a global supply chain or global supply chain.

Elements of the global supply chain

All activities carried out by global supply chains are governed by regulations established in the Declaration on Multinational Enterprises as an instrument of protection and constitution of the ILO (International Labor Organization), which also created the World Commission on the Social Dimension of Globalization.

The elements that make up the global supply chain are:

The global supply chain is made up of:

  • Suppliers.
  • Transportation.
  • Manufacturers.
  • Customer.
  • Communication.
  • New technologies.

Now, we can say that the importance of the global supply chain lies in the relationship and interdependence that is generated between its elements from the origin of the product or service to the final consumer.

Cargo - intermodal transport

If we can guarantee the supply chain, we have been able to guarantee the satisfaction of the customer’s need for the product he/she purchased and expects to receive in perfect condition, on time and in a timely manner. Some examples of global supply chains are:

  • Cisco Systems, in number 1
  • Schneider Electric, at number 2
  • Colgate-Palmolive, at number 3

We have taken these examples from Gartner Suppy Chain Top 25 of 2022.

We should note that after a year of great challenges for supply chains where flexibility and agility became the differentiating qualities that enabled them to meet the challenges of the pandemic. In addition to other macroeconomic factors, we can see that supply chains go beyond simply executing and designing efficient logistics. They also fulfill the purpose of their organization:

  • They understand and value their customers.
  • They invest in technology that drives them to develop resilience, agility and innovation.
  • They promote innovation and celebrate and celebrate successes in relation to ESG (Environmental, Social & Governance) criteria.

Cisco Systems has designed a virtual supply chain in which physical manufacturing and logistics are outsourced to specialized and physical logistics are outsourced to specialized companies, i.e. specialist manufacturers and third-party logistics companies.

This keeps it as one of the world leaders in the networking and telecommunications market. Cisco has enabled the development of a highly synchronized network of partners worldwide that acts in a coordinated manner as if it were a single business. It is also noted that the use of information and information technology to improve responsiveness to customers is the common denominator among successful companies.

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