Question

Identify and explain clearly four reasons why supply chain integration is difficult in a global supply chain environment?

Answer 1

Supply chain integration is difficult one when someone is dealing with an international supply chain environment due to the following reasons:

1) Mismatch of aspirations and work styles of various supply chain actors or participants:

Organizations having different interests and business styles may not collaborate properly to integrate supply chain . It needs great commitment towards shared business goals.

2) Legal restrictions and regulations:

Different countries have various enactments and legal procedures along with WTO rules , mutual agreements and other conventions. These law create difficulty and challenges of coordination among different supply chain partners .

3) Cultural differences:

It is one of the critical issues in business world. People working for different supply chain organizations may have different attitudes, perceptions and style of leadership. It creates again challenges for integration. One person may be of  positive attitude say supplier but other end client may be of negative attitude. It will create then some challenges.

4) Ethical business practices:

In global business environment, suppliers or any other business may be ignore quality and other aspects of business. It will create again the challenges of human resources and ethical implications of business operations.