Question

What supply chain policies are associated with multinational corporations?

Answer 1

There are some supply chain policies that are associated with Multinational corporations-

Supply chain is the proce which starts with procurement of materials from suppliers till the main product is distributed to end consumer.the policies help MNCs to make thier supply chain effective and efficient.

The first supply chain policy is Lean supply chain.

Under this policy, Company aims to execute every operation using less of each resource-people, space, stock ,equipment, time and so on.. organize for the efficient flow of materials to eliminate waste, give the shortest lead time, minimum stocks and minimum total cost.

The second supply chain policy is Agile supply chain policy-

Under this policy, MNCs aims to give a high customer service by responding quickly to different or changing circumstances. This policy is concerned with doing things quickly, saving costs, being responsive to market demands, maintaining flexibility, and keeping productivity high.

The third is Push and Pull supply Chain policy-

In the pull system production orders begin upon inventory reaching a certain level, while on the push system production begins based on demand (forecasted or actual demand).

for example- Dell is a MNC which has Pull policy in which when customers give order to purchase its computers then Dell start manufacture them and purchase materials to start production.

The fourth policy is reverse supply chain policy-

MNCs sometimes deal with products which customers want to return like We shop on amazon and sometimes we get wrong products so Amazon has revese supply chain policy where customer send back the orders to amazon under return policy.