With the impact of the epidemic in recent years and the continuous evolution of the international economic environment, the global supply chain is facing unprecedented pressure and change. Especially after major economies gradually remove investment barriers in the manufacturing industry, Chinese manufacturing enterprises face both opportunities and challenges. Enterprises going abroad are not only for market expansion, but also for finding and integrating the best raw materials and supply chain resources globally to ensure the stability and resilience of their operations. However, in this wave of globalization, many enterprises have encountered many obstacles on the path of supply chain management. Although it is widely believed that efficient optimization and management of the supply chain are key, there are not many companies that can truly execute successfully. So, what are our best strategies for facing these supply chain management challenges? In this issue, Acloudear industry experts will bring you the best practices and strategies for global supply chain management, hoping to have some inspiration for everyone.
Related studies have shown that Chinese enterprises traveling overseas generally face four major challenges in global supply chain management, including regional cultural and regulatory heterogeneity, cross-border logistics economy, fragmentation of information systems, and precise market forecasting.
Among them, the heterogeneity of regional culture and regulations has become one of the more challenging challenges for many enterprises in the supply chain: when enterprises venture into new regions and markets, they not only face the integration with local regulations, but also need to adapt to the relevant business culture and behavioral habits. These diversities may not only affect transaction processes, but also become potential business risks. For example, the fragmentation problem of information systems: globally, enterprises often use multiple information systems to manage various business departments when going overseas. The fragmentation of data and the integration challenges between different systems have become the main constraints on real-time transparency in global supply chains.
When Chinese enterprises go overseas to address the four core pain points in global supply chain management, the vast majority of them choose to establish relationships with local partners to solve cross-border supply chain problems, or adopt more conservative market strategies to cope with unknown market risks.
Although these methods may be effective in the short term, they are not sustainable and may not bring long-term competitive advantages. Today’s leading overseas companies often use digital technology to achieve resilience in their supply chain and respond to global supply chain risks.
In fact, looking at Chinese companies going global, such as Mindray Medical, Hisense, and others we are familiar with, they are very fond of the comprehensive digital supply chain solutions brought by SAP and have achieved good results.
Of course, in SAP’s comprehensive digital supply chain solutions, SAP Digital Supply Chain (Supply Chain Cloud Solution) is often used, which covers the entire product lifecycle and helps enterprises connect the entire supply chain process, connecting design, planning, manufacturing, logistics, maintenance, and services with other aspects of the enterprise and all situational data, Then, further realize the interconnection between the enterprise and the entire partner ecosystem, thereby helping the enterprise build a resilient supply chain.
For example, in order to help customers adapt and respond to interruptions faster, and proactively manage related manufacturing businesses, we can jointly build a resilient supply chain based on the SAP BTP PaaS solution and the SAP Supply Chain Cloud SaaS solution.
They generally adopt integrated data platforms, advanced analysis tools, global compliance management, cloud technology support, etc., which not only provide strong global supply chain support for our Chinese overseas enterprises, but also achieve global integrated financial and market management. For example, SAP’s solutions in global compliance management ensure that enterprises can comply with regulatory requirements and reduce compliance risks worldwide.
Nowadays, global supply chain management is both a challenge and an opportunity for companies aspiring to go global. Expert advice for enterprises going overseas: conduct in-depth research on the target market, fully understand its culture and business environment; Consider adopting digital solutions such as SAP ERP to systematically and digitally manage the supply chain; Regularly train the team to ensure synchronization with global best practices, etc.
If you would like to gain a deeper understanding of how to build a resilient global supply chain, or how to optimize the global supply chain through SAP S/4HANA Cloud (ERP Cloud) or SAP Digital Supply Chain (Supply Chain Cloud Solution), or if you need professional global supply chain consulting services, please click here for more information and expert advice.
This article "Global Supply Chain Management: Optimization Strategies and Digital Paths for Enterprises Going Abroad" by AcloudEAR. We focus on business applications such as cloud ERP.
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