what is global supply chain

A global supply chain refers to the worldwide system that a business uses to produce products or services, involving all the steps from sourcing raw materials to delivering the final product to customers, when these steps take place in more than one country. It encompasses the strategic planning, coordination, and optimization of all activities related to sourcing, production, distribution, and logistics on a global scale. The global supply chain is essential for international business operations, ensuring the seamless flow of goods, information, and services across borders. It involves complying with various international regulations and leveraging different goods and services from various countries to create a more cost-efficient product than if produced in a single country. The global supply chain is important as it creates business efficiencies and cost savings, allowing businesses to expand and enter new markets. However, it also presents challenges such as lack of equipment availability, labor constraints, geopolitical turmoil, environmental disasters, and technological disruptions. Overall, global supply chains are complex, fragmented, diverse, yet highly dynamic and evolving organizational structures, but they can provide several benefits.