The limited supply of goods within the immediate environment has led to long distance or global transportation and logistics (Cambridge International College, n.d., p.4). According to Bowersox (2009) globalization of logistics has four dimension of approach: the distance covered in the delivery mission, compliance to the complex international rules that differ with statutory bodies, being able to tailor services to suit the diverse global setups and offering products that meet demands of different cultures.
Compliance to international statutes has been influenced by the introduction of quality standards such as the ISO. These are deemed to increase efficiency. Efficient systems apply in manufacturing, procurement, delivery, packaging and customer services. Benefits are realized when satisfaction of clients is achieved. The quality of services gauges the level of satisfaction. The quality of services is governed by set internal and external marks of quality. Quality standards are anchored by efficiency concepts like lean systems concept. Bowersox (2009) explores this in the quality imperative (p.72). Total Quality Management (TQM) philosophies allow those handling marketing matters feel obligated while participating in meeting set standards in the day-to-day operations of the company (Bowersox, 2009, p.74). For instance, in meeting the International Standards Organizations, ISO 9000 are requisite benchmarks for mainstreaming into the company operations before getting certification.
The accreditation would mean that the company management not only makes decisions with reference to customer service that are aimed at delivering the product to the market for consumption but the products have met the standards of quality. Furthermore, a Company would not only gain opportunity of being recognized as having achieved global benchmarks but also is able to venture in world market system confidently. This is an added advantage to decision that are eyeing regional or global market as a way of expanding their reaches. The widen market translates to reduced exposure to risks within a local operation set-up. For instance, the risk of depending on a single market include inflation of market prices for a product this may translate to slow movement of products leading to lowered sales.
Quality standards are primarily meant to orient a product or operations of the company in conformance to criteria, which is already set that, have the customer in mind. Thus, when the Company seeks to achieve the certification, it will not be seeking the accreditation but also takes into consideration that the end user gets value for money (Bowersox, 2009, p.74). The criteria are checks and balances to ensure the product or the company operations are effective and efficient. Thus the mainstreaming the ISO quality standards have two goals in one that is, focusing service delivery of the company product or operation towards customer satisfaction while conforming the product or operation to global standards for accreditation.
Global markets have complex taste mainly driven cultural diversity, thus fitting company services to meet the demand of this kind of market is a strategic issue. There are also emerging departures between the developing and developed market with reference to how they approach the global market. Much of the developing markets are prioritizing the meeting of quantity demand while the developed are emphasizing on quality. Either ways (developed and developing countries) are keen on both quality and quantity but top most priority makes the difference. Developing countries are experiencing accelerated population growths while the county’s consumer goods and services are constant or are declining. Bowersox (2009) states that, globalization of chain supply has enabled countries like China and India meets their consumer demands (p.18). In developed countries, demand has undergone an intellectual shift. Industrialization has enabled consumers to choose from a wide range of products (p.17). Developed countries ability to meet the demand has driven the evolution.
Consumers in developed countries are now concerned about the production processes involved, especially with the globalized market. For instance, the birth of the ‘green markets’ has led to a ‘green’ consumer. Actually, ‘Green’ products have led to ‘green’ consumers, that is, with increased sensitization about the looming environment crisis some consumers have rather opted for products that care for environment. This is more in developed countries than in developing states. Some of the tact applied in the green campaign includes overlooking over-packaged products while doing their shopping. Some central questions that green consumers would pose about a product include, is the product ethical? Is the product ecologically sound? Is the product equitable? Ethical concerns will consider the moral practices that the producer of a product engages in. For instance, unfair play or use under tact to win favors or out do opponents with the same range of products. Ecological concerns will center on whether the producer is harming the environment or not during the production process. Green consumers may avoid products from a producer considered to be polluting the environment. Others would consider boycotting products made using raw ingredients from endangered species. Equity concerns draw attention of products to respect traditions and rights of local communities coexisting with source of resources used in the production process. This bears in mind the aspect of benefit sharing and access to a resource. This discourages the tendency of the producer to take advantage of local for individual gains.
Globalization of logistics has among its approaches the adaptation to different environments. Developments of concepts are effective in whichever environment setting. These are efficient in delivery of services. A chief benefit of the global standards like ISO quality is the factoring of central issues in sustainable development. According to (Bowersox, 2009, p.74) this is the integrated approach. Integrated strategies include lean manufacturing concepts and six-sigma concept, among others (Bowersox, 2009, p.90). More production output translates to higher inputs thus exploitation of more natural reserves to provide the needed raw materials. A Company involved in a competitive market may not automatically realize the consequences of overexploitation of the natural reserves as their mind would be occupied with making more profits. This may have an intergenerational or intra-generational consequence. Rates at which raw materials are drawn from their natural environment could lead to exhaustion if sufficient time is not provided for them to recover their stocks. Thus, the need to set standards that will manage rates at which the stocks of natural resources are exploited to avoid an instance where overexploitation has a dire consequence. Intra-generational and intergenerational equity considerations will ensure the needs of today are met while factoring the ability of meeting those of the future. These are the principles inculcated in the global standards like the ISO 9000.
Globalization of company operations is susceptible to international security issues for instance terrorist attacks (Helfrich & Cook, 2009, p.3 and Bowersox, 2009, p.19). The need for preparedness for these threats is fast becoming a priority. Helfrich (2002) regards the threats from international terrorism as disasters that need to be managed especially considering the adverse effects on business and industrial sectors. Helfrich & Cook (2002) suggests that players to prioritize the scope and the extent of impact of weapons of mass destruction at the planning level. The players crosscut government and non-governmental. The disasters from international terrorism have in the past left lessons for the future mainly in form of experiences but less has been achieved on how to avoid them. USA seeks to prioritize educational tools to prepare the public for disasters from weapons of mass destruction. In USA, both the government and non-governmental institutions have shown interest in preparing logistics management for weapons of mass destruction disasters. The defragmented approach by government and nongovernment institutions towards preparation for weapons of mass destruction is however a concern.
Natural disasters have had more or less similar impacts on logistics relative weapons of mass destruction. Their unpredictable nature has made them a major concern especially to global operators. Natural disasters are fast becoming a common occurrence. Very thin line exists in differentiating a human induced and naturally occurring disaster. Some of the naturally occurring disasters are thought to be fuelled by human induced activities through the climatic teleconnection. Teleconnections occur where activity within a remote environment cause an adverse effects elsewhere. For instance, the unpredictable stormy weathers are perceived to have remote agents.
Thus, international cooperation ought to cooperate in redressing the rising incidences of natural disasters. Individual efforts by single states may not yield much because the natural disasters know no boundaries. Countries are now setting up adaptation for funds in preparedness to some of the natural disasters. In USA, business and industry sectors are on annual bases setting aside a significant amount of money to cater for disasters (Helfrich & Cook, 2002, p.3). The need for change in perception in the approach to disaster management is imperative. For instance, in USA more people think that it is the duty of the government to prepare and respond to disasters. This may be less productive compared to a concerted approach between the government and the nongovernmental institutions. The contribution of Red Cross Society in disaster management attests the achievement that could be made when both the government cooperates with nongovernmental institutions. Over and above, international cooperation between countries and multinational logistics company is imperative in addressing underlying concerns (Tseng et al., 2005. p.1669)
Whether the global logistics services are to yield any benefits is a subject of concerted efforts from the demand party and he supply party. Both parties are to ensure products supplied meet both international and national standards, more so the standards for the consumer; the quantity and quality of the product meets the set transaction agreements and commit to make sure trans-boundary logistics are less hampered by both natural and human induced disasters. Logistics solutions applied would thus be applied both to the supply and demand patties. However, some of the underlying solutions to threats would be more localized than have a global approach. For instance, application of approaches to human induced disasters will differ especially with cultural background and level of sophistication. Approaches to natural disasters would need a more holistic application of approaches. Countries that have developed mitigation measures that are considered efficient ought to avail to those that need them. This means a closer cooperation in sharing technologies. A global disaster adaptation fund should be set to address disaster of international magnitude. This should be accessible to both developed and developing states.
References
Bowersox, C., C. (2009). Supply Chain Logistics Management (3rd edition).
Cambridge International College. (n.d.). Some tips on achieving high marks in your final examination. Web.
Helfrich, O. K. & Cook, R.L. (2002). Securing the Supply Chain. The Council of Logistics Management.Illonois: The Council of Logistics Management.
Tseng, Y., Taylor, M.A.P. & Yue, W. L. (2005). The Role of Transportation in Logistics Chain, 5 (1657 – 1672). Web.