What is an outcome of globalization on supply chains?

Increased complexity of management is a significant outcome of globalization on supply chains. As companies expand their operations across international borders, they face a multitude of challenges that require sophisticated management strategies. These include navigating various regulatory environments, coordinating logistics across different countries, and managing relationships with a diverse range of suppliers and partners.

With globalization, supply chains often become more intricate, involving multiple stakeholders from different regions, each with unique business practices and regulatory requirements. This complexity necessitates advanced supply chain management practices, including the use of technology for real-time tracking, data analysis for decision-making, and enhanced communication strategies to ensure all parties are aligned.

Additionally, the variation in cultural norms and economic conditions around the world adds layers of complexity that require attentive management. Companies must also be agile enough to respond to fluctuating global demand, shifts in trade policies, and disruptions caused by geopolitical events, natural disasters, or pandemics. Thus, managing a global supply chain requires a more strategic and multifaceted approach compared to local or regional supply chains.