Building an effective global supply chain involves integrating and coordinating common materials, processes, designs, technologies and suppliers across worldwide buying, design and operating locations (Trent, 2005). Managing global supply chain poses many challenges which will be examined including cultural differences, language, regional and governmental laws and regulations, and design and integration of global information infrastructure (GII). Additionally, risk assessment of possible disruptions in the supply chain will also be reviewed.
Dealing with Differences in Culture and Language
Every large MNC has within itself a defined culture, which was developed by top-level leadership (Schein, 1985). It is the responsibility of top level leadership to manage and at times modify cultural values within the organization to better adapt to changing environment, for instance moving into a different geographical area with differing cultural values (Schein, 1985). Leadership must effectively manage both language and culture in order to maintain efficient flow of raw materials, assembly, and product shipments throughout the supply chain. Managing is...
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