- Published: November 25, 2021
- Updated: November 25, 2021
- Language: English
- Downloads: 15
Today the world has turn into a global market and businesses have gone beyond national and continent borders. In this case, businesses result in collaboration to form a value or supply chain. The reason for collaboration is to create efficiency so that the newly formed system of organizations, people, resources and activities facilitate the movement of services or products from suppliers to customers. Globally optimized operations aim at overcoming challenges within the system so that organizations achieve sustainability when working with several global trading partners, different regulations, different business requirements, different business risks at the same time maintaining their competitive objectives (Ali & Kaynak, 2012).
Globally optimized operations result in better collaboration among partners. Global partners work well together to ensure that there is no disconnect in the functionality of the system ensuring its success. one enabling factors in optimizing global operations is the use of technology. According to Ali & Kaynak (2012), global partners should invest in information technology that best meets their requirements. The partners must take into consideration the operational goals and budget when developing the information system.
Globally optimized operations also ensure a constant flow of information and timely communications because the partners can decide to have a common database. Technology evaluation by the partners should be considered so that it does not become obsolete leading to stagnation of the businesses (Ali & Kaynak, 2012).
Globally optimized operations allow partners to set targets for the alliances or supply chain. This way they are able to monitor the business operations, maintain flexibility and innovation and take corrective actions where necessary. A business within a supply chain is supposed to keep its staff’s skills up to date to be at par with other global partners. Globally optimized operations allow individual organizations to focus on their core strengths thus reducing operational costs brought about by the weaknesses (Ali & Kaynak, 2012)
Question: how do organizations develop globally optimized operations strategies?
Ali, J. A. & Kaynak, E. (2012). Globalization of Business: Practice and Theory. Routledge