Global supply chain
A network of organizations, facilities, and transport routes that coordinates the production and distribution of goods across national borders.
Supply chain management: The planning and coordination of sourcing, production, inventory, and distribution across a supply network. It coordinates the cross-border activities that make a global supply chain function.
Multinational corporation: A company that owns or controls business operations in more than one country. Multinationals often coordinate production and sourcing across multiple national operations.
Just-in-time manufacturing: A production approach that receives inputs close to when they are needed, minimizing inventory. Its low buffers can reduce costs but leave global operations exposed to transport delays.
Global value chain: The full set of activities through which firms create and deliver a product across countries. It highlights how design, production, and services contribute value across the supply network.
Domestic supply chain: A network for producing and distributing goods within a single country. It limits cross-border links and provides a direct comparison with international networks.
Procurement: The process of acquiring goods and services from external suppliers. International sourcing begins with selecting suppliers and purchasing inputs.
Supplier: An organization or person that provides goods or services to another organization. Suppliers provide raw materials, components, and services at different stages of production.
Supply chain resilience: The capacity of a supply network to prepare for, withstand, and recover from disruption. International networks use resilience measures to handle shocks affecting suppliers and routes.
Comparative advantage: The ability to produce a good or service at a lower opportunity cost than another producer. Differences in production costs and capabilities help explain the geographic division of work.
Regional supply chain: A network for producing and distributing goods within a geographic region spanning multiple countries. It offers cross-border coordination with shorter distances and a narrower geographic scope.