The Importance of Partnerships in Supply Chain Globalization Summary

The Importance of Partnerships in Supply Chain Globalization
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The Importance of Partnerships in Supply Chain Globalization
Globalization has opened a plethora of opportunities that have revitalized business activities. With the advent of the internet and the ability of organizations to operate beyond various geographical boundaries, the world has opened avenues for the development of trade. Business organizations have taken the strides taken in globalization to expand their customer reach. While internationalization could be an inevitable strategy for some organizations, it is a challenge bearing the simple variations in specific business settings. The supply chain is one of the business aspects that are affected by the change of operations geographically. Occasionally, companies develop partnerships to steer their globalization agenda in various ways. This paper focuses on the importance of partnerships in supply chain globalization. Business managers must understand the internationalization strategy in terms of the nature of partnerships that they need and the specific challenges, including managerial, legal, and competition challenges, that can be addressed through the partnerships.
The Nature of Global Partnerships
Successful management of the supply chain at a global scale demands the development of optimized partnerships. Partnerships within the supply chain at the global level can bear both short-term and long-term benefits to an organization depending on the strategic intent of the parent company (Tannous & Yoon, 2018). There are specific relationships that an organization must consider while venturing into globalized operations. Primary among such relationships are partnerships with suppliers. Suppliers represent the primary partners in which an organization must invest on the global stage. To build strong relationships with suppliers at the global level, the partners should engage in three primary activities, including manifesting a similar vision for the future, bearing a spirit of collaboration, and showcasing timely and honest communication. At a global platform, suppliers are the lifeblood of a supply chain. Engaging such individuals in open communication and execution of activities is necessary.
Businesses also need partnerships with SaaS organizations in their attempt to secure a globalized supply chain effectively. Data has become a driving tool in contemporary supply chain practices. The process of data collection, management of dissemination is akin to the management of ties through the supply chain (Vidrova, 2020). SaaS partners, to that effect, become some of the primary partners to be sought at the global level. Remarkably, an organization that ventures in a global platform cannot pretend to hold all the information about operational trends. At least, such organizations need the supply of data. SaaS vendors offer enterprise resource planning, automation, and data analytics tools that help organizations understand their operations better. Without such information tools, a globalized supply chain becomes impossible to execute successfully.
The other category of partnerships involves the regulatory bodies. In every supply chain environment, ther...