Globalisation Of Trade: Global Supply Chain Management: Global Supply Chains (Copy)
Cheat Sheet: 3.2.1 Global Supply Chains
Types of Global Supply Chains
| Type | Flow | Example |
|---|---|---|
| Simple Supply Chain | Supplier → Manufacturer → Consumer | Farmer supplies cotton → Textile mill → Direct online sales |
| Complex Supply Chain | Supplier → Agent → Wholesaler → Retailer → Consumer | Electronics parts supplier → Agent → Distributor → Best Buy → Customer |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Features of Global Supply Chain Management
| Stage | Description | Example |
|---|---|---|
| Upstream | Flow of raw materials and components from suppliers | Steel supplier to car manufacturer |
| The Enterprise | Transformation process where goods are manufactured/assembled | Toyota factory assembling cars |
| Downstream | Distribution of finished goods to customers | Retailers selling Toyota cars globally |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Importance of Suppliers in Global Supply Chains
| Role | Importance |
|---|---|
| Provide raw materials & components | Without them, production halts |
| Maintain quality & timely delivery | Ensures smooth operations |
| Build trust & relationships | Long-term stability in supply |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Benefits of Global Supply Chain Management
| Benefit | Explanation | Example |
|---|---|---|
| Lower Cost of Production | Companies relocate production to cheaper countries | Nike producing in Vietnam |
| Lower Labour Costs | Labour cheaper in developing economies | Garments made in Bangladesh |
| Lower Purchasing Costs | Bulk buying from global suppliers cuts prices | Walmart sourcing globally |
| Advancement in Logistics | Faster shipping & air freight reduce delays | Amazon Prime global delivery |
| Advancement in Communication | Digital tools (EDI, tracking) improve efficiency | DHL tracking system |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Summary
| Key Idea | Takeaway |
|---|---|
| Global supply chains can be simple or complex. | |
| Managed through upstream, enterprise, and downstream stages. | |
| Suppliers play a critical role. | |
| Benefits include lower costs, efficient logistics, and advanced communication. |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course