Can global brands create a just and fair supply chain system? Take a position and defend it. (You may take into account - recent political upheavals in the USA, by considering the question of "fairness to whom"? That is to say, whom do the supply chains benefit the most?)
Global brands are companies that operate throughout much of the world. They are very well recognized and massive in size. Companies striving to create recognition from international markets need to keep in mind the simple concept that "every market is different". An organization should identify the attractiveness of each market, and conduct thorough research of the potential countries. Also, developing a firm with a management that operates and adapts to the unforeseen challenges of becoming a global brand is a key essential to establishing a brand that flourishes in markets. (VanAuken, 2010)
A supply chain according to Investopedia.com, is a network between a company and its suppliers that help in the production or distribution of the goods or services. A common misinterpretation is between business logistics and supply chain. Logistics is primarily concerned with production and distribution process that occurs within an organization, whereas in comparison, the supply chain takes into account the manufactures and businesses that link together in order to deliver the product to the customers. The supply chain represents the steps a corporation takes in order to deliver a final good to the consumer. Therefore, having a supply chain that is efficient results in boosted revenue because of the lower costs of production. A corporation can implement efficiency by mapping out their distribution channel. The two channels are an indirect-marketing-channel or direct marketing channel. Indirect-marketing routes have some-sort of middleman in play such as a wholesaler or retailer. A classic example of this would be large producers like Apple and Samsung selling their phones to retailers like BestBuy and Future Shop. Direct-marketing, on the other hand, has no intermediary level in the sale to the consumer such as a factory-direct store. Global brands continuously strive toward profit maximization to grow their market share. One way they can achieve their goal is by optimizing their supply chains which will continue to shrink the production costs. "Efficiencies in sourcing of materials, labor, warehousing, transportation is what it's all about."
Furthermore, there are different natures of supply chains that big brands can practice. They can either take the route of practicing ethical or unethical supply chain management practices. A growing concern with how products are coming to retailer's shelves is a growing concern in the hearts of politicians and consumers. If big brands conduct their business practices ethically they will end up not having to out-source for employees. Globalization causes businesses to seek a competitive rate that domestic workers would likely offer. It is safe to presume that domestic work conditions are ethical. A big brand like Uber is in recent light with having workers sleep in their vehicles and then continue to drive. (Roberts, 2017) That heavily damaged Uber's image in the media and resulted from them implementing major changes in their policies. Therefore, unethical supply chain system cannot be present in many domestic-based businesses. However, with most internationally conducted economic transactions that take place between companies is unethical. For example, Nike was in negative publicity for having numerous child labor news reports about their sweatshops in China with their brand suffering losses. (Nisen, 2013) But in recent according to the same article Nike have cleaned up their act and returned to the hearts of their consumers.
Global brands cannot create an ethical supply chain without consumer awareness. Consumer awareness, in regard to the responsibility that buyers face when purchasing a product that was produced with horrific workplace conditions in supplier factories. With 168 million children trapped in child labor and rising competitive forces coming from globalization forces many children in small towns where there are no schools for the youth, so they are forced to seek employment. Perfectly worded in the case study, "global supply chains focus on delivering the right product in the right quantity and in the right condition with the right documentation to the right place at the right time at the right price." Employing the children for bare minimum wages ($32.00 per month), allows big brands to minimize their production costs allowing them to satisfy shareholder's equity by increasing profits.
In conclusion, it is unfortunate that global brands find it difficult to improve global labor standards. Once a final product has been completed in an outsourced labor market it is sent back to the consumer market in developed nations. This route of the supply chain differs from the old-fashioned route when brands relied on local suppliers to extract and process their product, leading to both geographical and global manufacturing changes. Most big brands will use cheap labor and disregard the poor conditions in the work environment to maximize profits as there is no absolute way to enforce ethics and morality.
Works Cited
Nisen, Max. “How Nike Solved Its Sweatshop Problem.” Business Insider, Business Insider, 9 May 2013, www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5.
Roberts, Hannah. “Some Uber Drivers Have Been Sleeping in Their Cars Because They Can't Afford to Live in the Cities They Work In.” Business Insider, Business Insider, nordic.businessinsider.com/us-uber-drivers-commute-to-san-francisco-and-sleep-in-public-spaces-to-maximise-earnings-2017-1/.
VanAuken, Brad. “What Is A Global Brand?” Branding Strategy Insider, 13 Nov. 2017, www.brandingstrategyinsider.com/2010/02/what-is-a-global-brand.html.
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