Logistics Global Logistics How Important Essay

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There are also the cultural constraints which can be very significant across borders, as evidenced by the Cultural Dimensions Model as defined by Dr. Geert Hofstede (Minkov, Hofstede, 2011). The five cultural dimensions he has defined have a direct impact on the overall performance of a supply chain at the communication and collaboration level. Managers given the task of creating a multinationally-based supply chain need to pay attention not only to supplier performance but also the cultural factors that can significantly impact their operations for years to come.

The most important factor for companies operating a supply chain domestically or internationally across borders is the need for managing all relationships and dependencies to Demand Forecast Accuracy (Hofman, 2004).

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The ability to orchestrate the more fundamental aspects of supply chain performance including order cycle times, Work in Process and Finished Goods inventories and plant utilization to Cash-to-Cash Processes and finally attainment of the Perfect Order and Demand Forecast Accuracy is multinationally will challenge even the most advanced supply chain strategy (Hofman, 2004). The orchestration of demand across the entire hierarchy of supply chain metrics becomes exponentially more difficult when a supply chain is international in scope.

Figure 1: Hierarchy of Supply Chain Metrics

Source: (Hofman, 2004).....

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