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Supply chain management and globalization are two commonly
highlighted terms in this course. In many ways, domestic
supply chain management is not any different than global
supply chain management, except for the larger area of
operations. The biggest pros of going global are access to new
markets and the potential for greater growth and revenue. Other
pros of going global are access to technology, labor forces,
better access to procurement sources, lower production costs,
and the list goes on. The cons with going global are larger
travel distances, monitoring logistical processes, different
business practices, cultural differences, language differences,
higher transportation costs, and customs documentation
requirements (Coyle, Langley, Novack, & Gibson, 2017, p. 9).
Globalization has also been a highly sensitive political debate
among Americans. Arguments range from jobs leaving the U.S.
to greater global brand recognition. Some would argue jobs are
lost when firms offshore production, while others would argue
that with offshoring comes lower prices and greater firm
presence in new markets. Globalization is a very debatable
subject, but I tend to believe that in capitalistic markets its
necessary and will continue well into the future.
So why do firms decide to globalize their supply chains?
Simchi-Levi, Kaminsky, and Simchi-Levi (2008) identify four
reasons for globalization that are known as global market
forces, technological forces, global cost forces, and political
and economic forces (p. 313). Global market forces are the
pressures firms face when foreign competitors sell in their
domestic market, plus the opportunities they gain by selling in
their competitor’s market. Technological forces are the
pressures firms face with going abroad to gain new access to
technologies. Global cost forces are the profit driven pressures
firms face when deciding where to source supply and
production. Lastly, political and economic forces are the
pressures firms face with the politics of moving abroad and the
economic reasons for moving abroad. I thought it would be
important to list these four reasons for globalization as they
establish a common groundwork for firms deciding to go
global.
Dan
Coyle, J. J., Langley, J. C., Novack, R. A., & Gibson, B. J.
(2017). Supply Chain Management: A Logistics
Perspective(10th ed.). Boston, MA: Cengage Learning.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E.
(2008). Designing and managing the supply chain: concepts,
strategies, and case studies (3rd ed). Boston: McGraw-
Hill/Irwin.

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Supply chain management and globalization are two commonly highlig.docx

  • 1. Supply chain management and globalization are two commonly highlighted terms in this course. In many ways, domestic supply chain management is not any different than global supply chain management, except for the larger area of operations. The biggest pros of going global are access to new markets and the potential for greater growth and revenue. Other pros of going global are access to technology, labor forces, better access to procurement sources, lower production costs, and the list goes on. The cons with going global are larger travel distances, monitoring logistical processes, different business practices, cultural differences, language differences, higher transportation costs, and customs documentation requirements (Coyle, Langley, Novack, & Gibson, 2017, p. 9). Globalization has also been a highly sensitive political debate among Americans. Arguments range from jobs leaving the U.S. to greater global brand recognition. Some would argue jobs are lost when firms offshore production, while others would argue that with offshoring comes lower prices and greater firm presence in new markets. Globalization is a very debatable subject, but I tend to believe that in capitalistic markets its necessary and will continue well into the future. So why do firms decide to globalize their supply chains? Simchi-Levi, Kaminsky, and Simchi-Levi (2008) identify four reasons for globalization that are known as global market forces, technological forces, global cost forces, and political and economic forces (p. 313). Global market forces are the pressures firms face when foreign competitors sell in their domestic market, plus the opportunities they gain by selling in their competitor’s market. Technological forces are the pressures firms face with going abroad to gain new access to technologies. Global cost forces are the profit driven pressures firms face when deciding where to source supply and production. Lastly, political and economic forces are the pressures firms face with the politics of moving abroad and the
  • 2. economic reasons for moving abroad. I thought it would be important to list these four reasons for globalization as they establish a common groundwork for firms deciding to go global. Dan Coyle, J. J., Langley, J. C., Novack, R. A., & Gibson, B. J. (2017). Supply Chain Management: A Logistics Perspective(10th ed.). Boston, MA: Cengage Learning. Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain: concepts, strategies, and case studies (3rd ed). Boston: McGraw- Hill/Irwin.