LOG301MOD5CA

Running Head: Business and marketing Problems which companies face due to supply chain expansion worldwide Name: Institution: Course: Tutor: Date: Problems which companies face due to supply chain expansion worldwide There are various problems which are experienced by companies due to supply chain expansion worldwide. Supply chain in this case refers to materials’ movement to customers from source (Jones, 2005). Supply chain comprise of manufacturing, purchasing, transportation, warehousing, demand planning, customer service, management of supply chain and supply planning (Johnson & Green, 2002). It includes resources, information, activities and individuals who facilitate product movements to customers from sources involved. Although supply chain appears simple from its definition’s perspective, real challenge may be experienced in an attempt to effectively manage it (MacDonald, 2007). Effective management especially where extensive coverage is involved turns out to be ineffective and therefore most companies which seek evasion of the ineffectiveness prefer manageable operations, in which case they extend their operations depending on their ability to effectively manage the operations. The associated problems may be put to light as follows. For instance, as supply chains of companies expand worldwide, complications increase and possible solutions turn out to be more problematic (MacDonald, 2007). This has an implication that as the operations becomes expansive, their effective management turns out to be problematic due to the fact that many processes are involved. Supply chain expansion worldwide implies that the involved processes turn out to be complex, that is, movement to customers from sources becomes more complex (Johnson & Green, 2002). As a result of this, manufacturing, purchasing, transportation, warehousing, demand planning, customer service, management of supply chain and supply planning becomes more complicated due to the involved expansiveness (Jones, 2005). This in the short run tends to bring about various inconveniences as the companies attempt to facilitate smooth products flow worldwide. Sought solutions also tend to be less effective hence problematic due to the fact that they are entitled to the resolution of complex situations which require complex resolution methods. This problem is usually intense especially in short-run. Secondly, the companies tend to suffer delays in cases whereby supply chain expansion worldwide is experienced (Johnson & Green, 2002). This has an implication that supply chain expansion worldwide leads to long distances which in most cases may lead to delays. It is therefore apparent that product movements which involve...