The decision to take a business to the global level is one that can be very profitable if approached correctly, according to a recent Financial Post report.
Among the considerations that should be factored into the any globalization plans is the implementation of supply chain management solutions. Many global enterprises maintain a large network of business partners that help bring a product to the market. Management solutions can help maintain relationships across the entire supply chain.
“Going global can be extremely profitable, and many … businesses have realized significant growth as a result of doing so,” Mike Tierney, president of UPS Canada, told the Financial Post. “But it’s important to consider every link in the supply chain and the most cost-effective way to do business. It’s not always a simple A-to-B process.”
Other factors to take into account include fluctuating currencies, the average household income and the rate of growth for the middle class and expert projections of short-term political and economic stability, among others, according to the report.
According to a recent Gartner report, the market for supply chain community management increased 10 percent to reach $6.8 billion in 2010. That followed a 2.1 percent decline in the previous year, but the research firm predicted continued growth for the market moving forward.