Question

Globalization creates opportunities for large multinational companies especially in the western world to capitalize on vast consumer markets and find new sources of supply extending their existing supply chains. Local producers in emerging economies benefit too, as they become key suppliers for the multinational companies. For example a U.S. company with a manufacturing facility in China that procures materials from Africa servicing customers in the global marketplace needs to ensure continued supply of products at the best price. However, local companies operate differently than multinational companies and this can create challenges for managing the global supply chain.

**QUESTION**

How can IT/IS be leveraged by global companies such as Apple, P&G, Walmart etc. to optimize their global supply chain resulting in benefits for all participants?

Answer 1

IT/IS has effective roles in optimizing the global supply chain of global companies like Apple, Walmart, and P&G. Global supply chain management of global business organizations are greatly impacted by the effective use of IT/IS. Effectiveness of IT/Is in the global supply chain are as follows:

• It has made global communication easier. Suppliers, vendors, and consumers around the world can be easily connected with an efficient implementation of IT/IS.
• It has brought transparency in global supply chain management. The increasing use of IT/IS has brought transparency in the maintenance if suppliers data, manufacturers data and consumers data. Consumers around the world are getting quick feedback of their queries to global organizations like Walmart, Apple. For example- Apple quickly reacts to its consumers' feedback on its official website.
• It has brought greater efficiency in the global supply chain management. Effective utilization of updated software has enabled global business entities to reach their consumers and suppliers quickly. Utilization of IT/IS has made it easy to capture organizational data. Apart from that, it has nullified potential hazards associated with labor management, stock maintenance, and real-time stock checking.

Thus, the utilization of IT/IS has enabled global business entities to control their global supply chain properly.