Different world class companies are trying to integrate firms in developing countries. In their recent research paper, Gary Gereffi and Joonkoo Lee have discussed thoroughly "Why The World Suddenly Cares About Global Supply Chains". This leads to a new way of thinking and address critically the change for a company to adapt its practices for sourcing and distribution and to work with their key partners in the supply chain. Most improvement efforts could not be effective due to lack of standard models and a common language that incorporate the firms in developing countries. To directly apply such models directly, the models have faced different new situations. Because of these, the effective utilization of the existing modelling and improvement models, companies are always challenged by the existing challenges to apply without a proper adaptation of the model to the real situation.
The main challenges are:
• Country specific and organizational culture;
• The outdated technologies and manual and semi automated operations;
• Lack of basic ICT infrastructure;
• Inadequate infrastructure (roads, electricity, and water supply facilities).
• Lack of access to skills and professional practices;
Can you share your experience on such types of endeavours and successful stories in model adaptation for performance measurement, modelling and improvement?
The major problem is organizational compatibility to a standard and following it properly. Now a days many companies are certified on different quality standards but most of them are not following the rules properly specially in third world countries.
Other than the main challenges, the training is the important factor. If a company has to extend its supply chain to the a specific country, they need through study of the culture, market, products of the country. To save the cost of the research, company employees people within that region without providing them training about their own company and environment. The result is that a global supply chain is opened but does not work that properly like main head quarter. Then such companies try to alter the culture, infrastructure of the respective country and fails in achieving the status.
The solution all this global supply chain is properly selecting candidates from respective countries. Bring them to global head quarter, train them on standards of company and send back for the development. Now, when they will work for the development, they will be implementing it properly. All things like roads, electricity, water supply facilities cannot come without strong proper trained person.
Dear Muhammad Usman Tariq,
Thank you for your comments. What is your opinion if the model need to include the small and medium enterprises even small farm holders which did not have direct link to the big international companies? But they are participating in the global network with little capacit for negotiation power.