International supply chain management and logistics makes reference to the management or control of both physical and information flow concerning a wide variety of goods, tracking them from the point of their origin and until they reach the destination. This management is done with the help of a number of tools, which provide support when it comes to planning and implementing the set plans for the efficient flow of the supply chain.
International Supply Chain Management Definition
The definition of the International Supply Chain Management is similar with the one of supply chain management, which is the management of the flow involving goods or services, represented by transportation and storage, by inventory and shipping schedules, beginning with the acquisition of raw materials to providing the final product to the end consumer. In the case of International Supply Chain Management, this flow assumes the involvement of at least one company from abroad, with the purpose of creating a network composed out of trans-national companies.
Importance of International Supply Chain Management
- Growth or Expansion in Outsourcing: The organizations are availing the benefits of the domestic market in terms of acquiring skilled workers, low wages, low costs of raw materials, and lower expenditures in shipment of manufacturing units from one country to another.
- Competition at Global Level: Today, the competition is not limited only to the domestic competitors. For availing the benefits of other locations in terms of cost effectiveness, probing unexplored markets, lowering dependability on saturated markets of the development nations and to counteract with international competitors, firms need to work outside their home country. An effective international supply chain benefits the organizations in many ways by offering cost advantages through efficiency in working operations and ability to establish a distinguishing identity in terms of effective customer care services and on-time delivery.
- Effects of Corporate Strategy: The prime focus of today’s modern business strategy is towards partnerships, strategic alliances, collaboration among different business units, coordination among channel members, and integration of process and systems through information technology with the help of internet, through which numerous business units can work under international business setting.