Optimizing one of the supply chain levers individually does not translate to an optimized supply chain since they are all synchronized. In terms of modification or disruption, the alteration of one lever affects the functionality of the adjacent ones and thus affects the entire supply chain (Dolgui et al., 2019). When the transport and logistics system is optimized, it increases volume and the ease of movement of raw materials and finished products to and from the warehouse; this will cause inconvenience to the storage services. The warehouse must be optimized to handle the increased demand for storage facilities (Juan et al., 2018). On the other hand, to optimize the cost of transportation, the volume of raw materials procured and the goods produced must increase. This scenario indicates the interrelationship between different levers in the supply chain and how big data analytics plays a significant role in optimization.
Global markets are replicas of the local ones; thus, a similar optimization strategy will apply, although there might be a slight difference. The business has to consider gradual optimization as they study the emerging trends and collect their big data, which will be used to inform their future operations (Macchion & Fornasiero, 2020). Every country has varying policies that affect different levers and data, to which the business must ensure absolute adherence. These policies may include using green energy, environment-friendly production processes, and data privacy laws. In addition, a business should brace itself for emerging trends. It should consider consumer surplus and prosperity in the global supply chain (Shen et al., 2019). Big data analytics in global markets, just like local markets, influence optimization in all levers.
References
Dolgui, A., Ivanov, D., & Rozhkov, M. (2019). Does the ripple effect influence the bullwhip effect? an integrated analysis of structural and operational dynamics in the supply chain.International Journal of Production Research, 58(5), 1285–1301. Web.
Juan, A. A., David Kelton, W., Currie, C. S. M., & Faulin, J. (2018). Simheuristics applications: Dealing with uncertainty in logistics, transportation, and other supply chain areas.2018 Winter Simulation Conference (WSC). Web.
Macchion, L., & Fornasiero, R. (2020). Global–local supply chain configurations for different production strategies: A comparison between traditional and customized productions.Journal of Fashion Marketing and Management: An International Journal, 25(2), 290–309. Web.
Shen, B., Xu, X., & Guo, S. (2019). The impacts of logistics services on short life cycle products in a global supply chain.Transportation Research Part E: Logistics and Transportation Review, 131, 153–167. Web.