Compare 3 different conceptual approaches to global supply chains Essay

Compare 3 different conceptual approaches to global supply chains examining their differences and similarities - Essay Example Effective supply chain management is made possible by the use of effective communication, information, trust and cooperation. Global commodity chain (GCC) approach consists of â€Å"set of interorganisational networks clustered around one commodity or product, linking households, enterprises and states to one another within the world economy† (Gereffi & Korzeniewicz, 1994). The global production network (GPN) approach involves the existence of circuits that function in an interconnected way to conduct operation and transactions for the production of specific services and products for distribution and consumption (Dicken, 2011). As opposed to the concept of ‘chains’ which follow a vertical mono-linear structure, the GPNs are ‘networks’ that spread in multiple directions i.e. vertical, horizontal, diagonal etc. Christopher (2011) asserts that it should be kept in mind that supply chain is different from ‘vertical integration’. As far as the complexity is concerned, the structures of GPNs are far more complex and inter-woven when compared to chains. This extreme complexity is driven by the patterns of demands that exist worldwide. Global supply chain management is more inclined towards addressing the issue of supply to the end users of products. As a result of this, the competition between different firms can be seen at grass root level. This is due to the fact that every firm is striving to achieve the aim of reducing costs in a competitive market to maximize profits. The GPNs on the other hands are more concerned with the issues of supply that are faced by producers of the products. At this end, the problems are more related to the matters regarding acquisition of raw materials on lowest possible prices from suppliers around the world. The areas of focus related to GPNs include territoriality, domestic actors like