Supply chain management in the aspect of globalization

Abstract

The world of logistics has also changed considerably thanks to globalization. The most important term of logistics is the supply chain (SC). With the advent of globalization, managing SC activities has become more complex. Supply chain management (SCM) is an integral part of most businesses and is essential to company success and customer satisfaction. Supply chains (SCs) represents the paths between suppliers and buyers (customers or consumers). The role of (SCs) is to ensure a product from inception all the way into a consumer´s hands. Marketing plays an increasingly important role in the process; it balances procurement by providing essential demand information and building the relationships that help improve the efficiency of SC operations. In order to reach as many markets as possible, these products must cross international borders. Without SCs, the products that suppliers produce would not efficiently get out into the world markets therefore are vital for markets all over the world. The aims of the paper are following: to define the concept of SC and SCM, to list what advantages arising from participation in global supply chain and finally, to refer the mistakes made by companies operating in international markets in SCM.