Learning Outcomes

After reading this chapter you should:

• be aware of the impact that globalization is having upon world consumption and production;

• know that not everybody agrees that globalization is of benefit to all people in the world economy;

• be able to define globalization as a phenomenon and recognize the key drivers of change in the global economy;

• be aware of the political and regulatory environments in which organizations operate and their impact upon supply chain strategies;

• know the risks involved in sourcing and procuring suppliers and supplies from different parts of the globe;

• know the impact of new technologies and innovation, and how these developments impact upon supply chain strategies.

Introduction

The aim of this text is to develop a different approach to the study of organizational supply chains by shifting the terrain from the usual field of purchasing/operations towards a more strategic approach focusing upon customer-driven and customer-focused strategies for managing supply chains. Taking a strategic approach involves direction setting, establishing an agenda for change and allocating resources effectively whilst simultaneously utilizing resources efficiently. To achieve these strategic objectives it is essential that organizations focus their supply chain activities to satisfy customers. Managers need to think differently about what they do and the purpose of the organization and organizational networks in satisfying demand through effective (strategic) and efficient (operational) supply chain structures, relationships and strategies. Operational thinking is pervasive in most organizations. Indeed this should come as no surprise since most managers are promoted to positions demanding strategic...