Global Trade Process and Supply Chain Management
As a result of increased globalization of industrial supply chains, effective supply chain management requires sound alignment with the global trade processes. The design of the global supply chain and the determination of the right level of postponement are both tied intimately to the prevailing network of trade agreements, regulations, and local requirements of the countries in which the company is operating in. Moreover, the dynamic changes and uncertainties of these agreements and requirements must be anticipated. In addition, the complexity of the cross-border trade processes results in uncertainties in the lead time and costs involved in global trade, which naturally forms part of the consideration of global sourcing, and the resulting safety stocks or other hedging decisions. Governments, exporters, importers, carriers, and other service providers have to work together to reduce the logistics frictions involved in the global trade processes. The benefits accrue not only to the exporters, importers, and the intermediaries but ultimately they could foster bilateral trade. The only way to reduce the frictions is to gain a deep understanding of the detailed process steps involved to improve upon it by using information technologies and potentially re-engineer the processes. But the payoffs to such investments can be huge. This chapter provides some preliminary discussion of the inter-relationships between global trade processes and supply chain management, with the objective to stimulate research in this area.
KeywordsSupply Chain European Union Supply Chain Management Trade Agreement Bilateral Trade
Unable to display preview. Download preview PDF.
This chapter draws upon past and ongoing research that I have done with colleagues like Professors Chung-Yee Lee, Warren Hausman, Lingxiu Dong, Seungjin Whang, and Morris Cohen.
- 3.Cohen MA, Lee HL (1989) Resource deployment analysis of global manufacturing and distribution networks, J Manufacturing and Operation Management 2(2):81–104.Google Scholar
- 4.Cuneo EC (2003) Safe at sea. Information Week (April 7)Google Scholar
- 6.Hausman WH, Lee HL, Subramanian U (2009) The impact of logistics performance on trade. Production and Operations Management (under review)Google Scholar
- 7.Hausman WH, Lee HL, Napier G, Thompson A, Zhang K (2010) A process analysis of global trade management: An inductive approach. Journal of Supply Chain Management (to appear)Google Scholar
- 8.Hoyt D (2007) Crocs: Revolutionizing an industry supply chain model for competitive advantage. Stanford Graduate School of Business case GS-57, May 9Google Scholar
- 9.Lee CY, Lim A (2008) RFID cross-border project: Process enhancement feasibility study. Hong Kong University of Science and TechnologyGoogle Scholar
- 10.Lee HL, Dong L (2009) Postponement boundary for global supply chain efficiency. Working paperGoogle Scholar
- 11.Lee HL, Shao M (2009) European recycling platform: Promoting competition in e-waste recycling. Stanford Graduate School of Business case GS-67, August 18Google Scholar
- 12.Lee HL, Silverman A (2008) Renault’s Logan car: Managing customs duties for a global product. Stanford Graduate School of Business case GS-62, April 29Google Scholar
- 14.Lee HL, Wolfe M (2003) Supply chain security without tears. Supply Chain Management Review 7(1)(Jan/Feb):12–20Google Scholar
- 15.Silver E, Pyke D, Peterson R (1998) Inventory management and production planning & scheduling. 3rd ed. Wiley, New York, NYGoogle Scholar