Running head: Review #3 1
School of, Liberty University
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Avittathur, B., Jayaram, J. (2016). Supply Chain Management in emerging economies.
DECISION, 43(2), 117–124.
Statement of author’s purpose
The basis of this article is on the issue of supply chain management in the arising economies
endeavors to arrange the examination that exists in the field and distinguish the areas of potential
exploration to open doors in supply chain management within the setting of arising economies.
Specifically, not many examinations have been conducted at the store level, barely any
investigations have seen stores with regards to rising economies, and a critical hole exists on how
social and infrastructural issues could impact the presentation of supply chains in rising
economies in correlation with what exists in developed economies. In comparison to the United
States, which has a developed economy, a rising country like most South American and African
countries, has more complications in their supply chain due to societal factors. For example,
Nigeria's road networks are in poor condition from lack of maintenance, and the country has a
poor record on air transport safety. Many factors are responsible for the inadequate
infrastructure in Nigeria such as: poor funding, governance, corruption, economic sabotage,
poor maintenance culture; population explosion, and neglect of urban and regional planning
laws. In this article, the most interesting issues are summed up, ramifications of the discoveries
of these articles are orchestrated, and a few proposals for future examination in this field are
advertised.
Background
The sudden emergence of the economies of developing countries has drastically changed
the dynamics of global supply chains. Countries like China, Brazil, and India have shifted global
focus to their economies because of their increasing level of economic responsibility. Their
percentage of the world GDP, which makes up the majority of the world's goods and services, is
continuously increasing . As of now, the most essential parts of supply chains for many
companies are now located in these emerging economies. Strategic supply chain programs such
as lean management, which have yielded considerable benefits for supply chain processes in
developed countries, are now being adopted in other countries as well (Avittathur, Jayaram,
2016). The primary purpose of lean management is to create value for customers by optimizing
their resources in the manufacturing process. Global supply chains are now at a fixed point in the
hierarchy of developing-nation industrial agendas, and numerous countries are searching for
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industrialization efforts to shake this stagnancy.
Application of Supply Chain Management Theory
In this current chapter, the topic of warehousing is analyzed. Warehousing, materials,
handling, and packaging combine to incorporate many different aspects of logistics operations
(Hill, 2021). More than often, they are addressed independently of one another, but collectively
they function as an integral part of the supply chain. Efficient warehousing can help provide
services that will increase revenue. According to the article, agri-supply chains in India play a
vital role that the practice of crop diversification plays in increasing yields. Through the
application warehousing there are various ways that services can be improved. For example,
spot-stocking is typically used to support customer requirements and needs. Most manufacturers
that produce seasonal products often spot stock. Instead of maintaining inventory in a warehouse
year -round or shipping to customers directly from manufacturing plants, responsiveness in peak
selling periods can be enhanced through temporary inventory positioning in strategic markets
(Hill, 2021). Pertaining to agricultural production in India, companies can spot-stock with
various farms in anticipation of the harvesting season.
Managerial Implications
First, the varying roles in the supplier/producer segment in emerging economies can play
beyond being a consumer. Such roles include supplier roles, producer roles, market matching and
enabling roles, and entrepreneurial roles. Second, by taking advantage of the benefits and
challenges of traditionally structured channels and online channels, hybrid or omni-channels can
be designed and implemented to take advantage of the enormous growth opportunities of the
retailing sector in general in emerging economies, and in particular, the online segment. It is
projected that by 2025, 38% of India’s population will inhabit its major cities. Knowing this,
India’s urban per capita GDP will surely increase as the number of urban households with
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spending power is increasing. Changes in the traditional Indian family structure are also
changing. Women are now more inclusive in the workforce, with most seeking full employment
outside of the home. Given the sudden emergence of internet based commerce in emerging
economies, this article covers a current issue of interest. There are a variety of retailing contexts
such as video streaming of movies, supermarkets, jewelry stores and bookstores to highlight how
costs can be brought down while being responsive to customers. Third, the immensely important
role of logistics service providers, in emerging markets, in particular, under challenging
infrastructure and other policy constraints has been identified. The continuous development of
infrastructure in India for example, must be completed on schedule due to population expansion.
Further research on this key issue is important for the growth of supply chain management.
Understanding these disruptions in the supply chain can help suppliers before they run into such
problems. The increasing demand for customer services has altered traditional warehouses into
facilities that foster value added services. Any value-added service creates a greater value for
customers. Greater value helps develop professional networks between manufacturers and
customers. Fourth, pertaining to agri-supply chains, key practices like pooling and crop
diversification play an important role in enhancing yield, preventing risks as well as bringing
down costs. The analysis of products that will be distributed is an important area to focus on and
how warehouses operate. By keeping a wide mix of supplier practices, firms are able to find
their niche and optimize on the efficiencies in each practice.
Article Summary
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The global economy has become structured around global value chains (GVCs) that account for
a rising share of international trade, global gross domestic product, and employment (Fernandez-
Stark, Gereffi, 2019). The evolution of GVCs in diverse sectors, such as, apparel, electronics,
tourism, and even business service outsourcing, has significant implications in terms of global
trade, production, and employment, and how developing-country firms, producers, and workers
integrate in the global economy. The GVC system permits one to see how worldwide ventures
are coordinated by analyzing the design and elements of various players engaged with a given
industry. In the present globalized economy with extremely complex industry communications,
this methodology is a helpful tool to follow the moving examples of worldwide creation, players
inside a solitary industry, and decide the jobs they participate in. The system centers around the
successions of significant value added inside an industry, from origination to creation all through
end usage. It analyzes the sets of innovations, guidelines, cycles, and markets in explicit
enterprises and places, in this manner giving a comprehensive breakdown on worldwide
businesses entirely.
References
Avittathur, B., & Jayaram, J. (2016). Supply Chain Management in emerging
economies. DECISION, 43(2), 117–124. https://doi.org/10.1007/s40622-016-0130-8
Fernandez-Stark, K., & Gereffi, G. (2019). Global Value Chain Analysis: A Primer
(second edition). Handbook on Global Value Chains, 54–76.
https://doi.org/10.4337/9781788113779.00008
Hill, M. G. (2021). Supply Chain Management . McGraw-Hill Education.
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