Question

When considering Global supply chains what specific compliance activities need to take place .What are the most important and least important of these?

(If possible, answer it in no more than 2 average length paragraphs. The previous answer I got didn't really seem to specifically answer the question, was a good answer but way too long. I need a precise answer to the question so I can elaborate on it in my own words.)

Answer 1

Global supply chains have coverage in various countries. Every country has its own set of rules and legal compliances. If a random audit is conducted by the host country’s government and the compliances of the region are not being met, the company’s license of doing business in that region may get cancelled and the relationship between the company and the government may turn hostile. Moreover the companies goodwill and brand image will get tarnished. Hence compliance adherence is quite critical while managing the global supply chain.

Some of the compliance activities which need to be adhered to, while managing a global supply chain are as follows:

· Trade regulations of the region

· Technical regulations of the region

· Corporate social responsibility norms

· Labor regulations

In my views, all compliance regulations are equally important. This is so because violation of even one, can jeopardize the business of the company in the region. Hence companies come up with auditing committees to maintain a vigil on compliance adherence by the companies and their suppliers and sub-suppliers.