Global Logistics: Strategies and Challenges Essay

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Before planning global logistics, a company must consider several factors to avoid significant complications. First, it is necessary to correctly assess the current world situation concerning an organization’s field of activity. For example, the COVID-19 pandemic has led to a sharp increase in freight shipping prices and port congestion, which must be considered when planning the supply chain (Berger, 2021). In addition, obsolescence of equipment and infrastructure, causing delays, can be a significant obstacle to the efficient implementation of logistics (Berger, 2021). Finally, the third barrier is the enterprise’s digital information security. At the moment, almost all companies are somehow connected with digital technologies. In the context of global logistics, data stored on company servers is a precious resource that must be carefully guarded.

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To make the supply chain more efficient, companies usually turn to either direct or indirect strategies. The capabilities of a particular organization primarily justify the choice of approach. On the one hand, indirect tactics allow small organizations that cannot establish a full-fledged trade network abroad to use global trade (Roy, 2017). In such cases, an outsourcing and resource diversification strategy can be quite effective. However, if the company has sufficient resources, implementing a direct strategy will completely control the supply chain process. Nevertheless, from my perspective, diversifying resources and attracting reseller companies is more effective due to the flexibility of customization, cost savings, and the reduction of some specific obstacles.

References

Berger, D. (2021). . Global Trade Magazine.

Roy, E. (2017). Trade Ready.

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IvyPanda. (2023, March 8). Global Logistics: Strategies and Challenges. https://ivypanda.com/essays/global-logistics-strategies-and-challenges/

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"Global Logistics: Strategies and Challenges." IvyPanda, 8 Mar. 2023, ivypanda.com/essays/global-logistics-strategies-and-challenges/.

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IvyPanda. (2023) 'Global Logistics: Strategies and Challenges'. 8 March.

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IvyPanda. 2023. "Global Logistics: Strategies and Challenges." March 8, 2023. https://ivypanda.com/essays/global-logistics-strategies-and-challenges/.

1. IvyPanda. "Global Logistics: Strategies and Challenges." March 8, 2023. https://ivypanda.com/essays/global-logistics-strategies-and-challenges/.


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IvyPanda. "Global Logistics: Strategies and Challenges." March 8, 2023. https://ivypanda.com/essays/global-logistics-strategies-and-challenges/.

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