Innovative Solutions for Implementing Global Supply Chains in Emerging Markets

Abstract

In a supply chain network, facilities are the primary components where a product is manufactured or stored. During the phase of design of a supply chain network, a company decides how to configure the supply chain over the next several years. Key driver of supply chain performance in terms of responsiveness and efficiency will be taken into consideration in the decision process and the decisions include the role assigned to each facility, its capacity to perform the assigned role, the number and location of the facilities. Since supply chain design decisions pertaining to facilities are typically made for the long term and are very expensive to alter on short notice, the decisions must take into account uncertainty in anticipated market conditions over the next few years. Decisions regarding facilities are therefore a crucial part of supply chain design. This chapter explains the practical application of theories, concepts and frameworks in the area of Supply Chain Design, Risk Mitigation and Social Networks. The practical application is based on a case study of ABC, one of the world's leading agribusiness companies with global operations that made a successful foray in emerging markets facilitated by sound decisions pertaining to the design of its global supply chain network. Certain names and other identifying information were disguised to protect confidentiality.