Avittathur, Supply Chain Management In Emerging Economies

Arthur Supply Chain Management in Emerging Economies Decisions
Student’s Name
Institutional Affiliation
Avittathur, B., & Jayaram, J. (2016). Supply chain management in emerging economies. DECISION, 43(2), 117-124. doi:10.1007/s40622-016-0130-8
Statement of the Author’s Purpose
The single most important issue here is to discuss the shortage of research on emerging economies and how these economies affect supply chain management. The article explains that India, China, and Brazil are the emerging economies with the most influence towards the global supply chain management (Avittathur & Jayaram, 2016). The major focus of this article is in the emerging economies and its impacts on the global supply chain, including its opportunities and challenges. According to this research, supply chain basing on the natural resource is more geographical bounded and susceptible in meeting the local social demands despite the globalization development as a global trend. The common barriers faced by the supply chain as presented in this research sustainability challenges which results in complexity and uncertainties, which results in the turbulent business environment (Gold, Hahn, & Seuring, 2013). The author, therefore, concludes that there is a substantial gap on the impact of structural issue and culture on the supply chain success within the emerging economies.
Application of Supply Chain Management Theory Relevant to Article
The modern global business environment depicts a trend characterized by a shift from developed economies to the emerging economies. The developed economies depict a weak performance, which is the primary reason for the shift, thus developing a volatile supply chain management. Creation of new business models from the preferences of the customer's results to adjustments of firms with the establishment of small distribution centers near the customers for fast delivery. Significant changes in supply chain management are necessary for addressing the challenges which limit firms from successful emerging economies. Enhancement of globalization and complexity of the supply chain forces firms to work toward the reduction of cost of global and material.
Background of the Issue
Emerging economies enable a diverse growth opportunity in the market, thus becoming essential for firms to establish. As presented in the article, Brazil, China, and India are countries with huge potential that are exploited on supply chain economics. A firm that can manage to approach optimal supply chain development achieves maximum exploitation of available opportunities. Successful supply chain performance ensures maximum application of modern technologies, innovation, and process thinking more appropriate than the strugglers enabling achievement of maximum gains in variables affecting stakeholders and their values including the customer service, cost, productivity of assets, and regeneration of revenue (Gold, Hahn, & Seuring, 2013).
According to the author’s perspective, challenges influencing emerging economies include infrastructure, a broad range of customer’s needs, volatility in commodity prices, high cost of initial investment, and cultural diversity. The author ment...