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Department of Industrial and Systems Engineering
IEGR 367.001
Production and Operation Management
Fall, 2017
Proposal
Subject: Project Management – Global Supply Chain
(Program Evaluation & Review Technique – PERT)
Hassan Alruwaythi
Date:
6 November 2017
Grade for the Data
Accumulated Grade
Global Supply Chain
Introduction
This area is important because the essential factors behind it have resulted in reduction of
procurement costs.
The world is a global village hence, it is easy to carry out businesses globally however,
and challenges along the supply chain like expensive costs and different customer preferences
hinder small businesses from expanding. Additionally, developing a new market is harder than
ever because customers have grown to be more demanding than ever.
Background
To save cost along the supply chain, some companies choose to share service centers and
contracting outback office duties (Blair, Corminas and Foss). Traditionally, supply chain
management was decentralized but this is changing because it has become an area of focus as a
way of reducing the total cost and improving efficiency of a company. Bigger companies opt to
move to Global Business Service (GBS) to centralize the whole supply chain business. It is a
challenge for smaller companies though because they do not have the capital to centralize all
their operations.
Body Work
Small businesses face challenges when trying to go global. One of these issues is an
expensive supply chain because of transportation costs as well as currency conversion rates.
Moreover, different customers have different preferences and for business to make it, they have
to meet the customers at the point of their needs. It is impossible to give everyone what they
want and it is also expensive. Lastly, growing a new market is hard hence posing as challenge to
small business that want to go global (Berrios).
Conclusion
Currently, it is easy for a business to go international due to the Internet and proper trade
laws but small business faces challenges along the supply chain. They include the cost, customer
preferences and market growth.
Works cited
Berrios, David. “Challenges in Supply Chain Management.” 6 March 2014. Wisconsin School of
Business. 4 Nov 2017 .
Blair, Erin, Marcos Corminas and Carl Foss. “Global Business Services for Supply Chain
Operations .” 5 Dec 2016. Supply and Demand Chain Executive. 4 Nov 2017
.
…
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