The Article Review - “rethinking the Global Supply Chain”

INTRODUCTION

The article “Rethinking the Global Supply Chain” by Joseph O’Reilly defines a precise concept which can be also extrapolated from the title: redesigning the supply chain system in order to keep up with the new global market developments and dynamics. Supply chain management walks across the national borders, pushing the managers to face the challenges of globalization, such as the supply chain design, which includes the decisions regarding the number and location of production facilities. Competitive pressures and changes in the monetary system have constrained worldwide organizations to reassess the operations and structure of global supply chain. Shifts between “nearby for neighbourhood” and “global supply” techniques for manufacturing and distribution have consequences for structure, control frameworks and expenses to serve the client. New ways to deal with overseeing changes in global chain have been developed.

In this article O’Reilly defines few key points: demand supply variability and expansion towards new countries, the issue of nearshoring manufacturing, and the new technologies. All these factors influenced the redesign of supply chain.

O’Reilly analyses well the shifting demand and its variability, defining the countermeasures that the companies should take. He also makes a good report of the demand’s supply curve new directions, towards Asia, Africa and South America; very helpful is also China’s pattern. But he does not make clear the problem of nearshoring the manufacturing and supply chain, and its related issues. Cheaper energy pushes companies to nearshore, but it influences dramatically the supply chain location decision making.

Moreover he just outlines the use of e-commerce without giving a deep understanding of the topic. On the contrary, very accurate is the question of technology in supply chain, focusing on the software that enables companies