Global Supply Chain.

Global supply chain is the system by which goods and services are distributed through complex network of transnational logistics channels. The primary aim of this concept is process efficiency and profit maximization.  It involve the flow of information, processes, and resources across the world.

One of the key characteristics of the global supply chain is distribution of the processes of supply of raw material, manufacturing and distribution in more than one country. For example, a manufacturing company with strong global supply chain network might source its raw materials from Brazil, design its products in the European Union, manufacture in China and distribute and sell its products in the United States. Global supply chain is the major driver of globalization.

The physical aspect of global supply chain that involves the movement of goods from the point of manufacture to point of consumption, is called the Global Logistics Chain. It involves the movement of goods—by truck, train, ship, or aircraft—as well as preparation, packaging and storage of goods in warehouses and logistics centers.

Any disruption in any of the major links of the global supply chain usually have a domino effect on the specific industry and other allied markets. A good example of global supply chain collapse is the aftereffect of the Covid19 pandemic on the worldwide supply of microchips for consumer electronics and automobiles. At the height of the pandemic, industries were shut down and the supply of critical raw materials were disrupted. One of the major industries that was affected was the microchip industry. Orders were cancelled and demands were cut down. Fast forward to the recovery period, when orders were renewed and demands increased, the major manufacturers could not meet up with the demands and the markets suffered drastically.