Case Study 9-2: Information technologies Support Global Supply Chain
What are some of the challenges that MNCs face as far as intellectual properties are concerned?
MNCs are corporate organizations that own and manage investments in one country or more without including their mother country. These investments include the production of goods and services which vary due to different factors in the countries. These organizations face various challenges with respect to intellectual properties.
The main challenge with intellectual properties is piracy and theft. Many products are being stolen in the process of the supply chain by the people involved. Information technology should, therefore, intervene by installing monitors in the vehicle and anywhere else possible. These monitors should be connected to computers where videos were taken can be followed in case a problem occurs in the process.
MNCs also face a challenge of the high cost of supply due to the supply chain. Great expenses are incurred when the products are transported for long distances. Incidences of accidents may also occur on the way which may distort the product thus leading to great losses to the organizations (BIDGOLI, 2018).
What are some of the environmental challenges MNCs face?
Tsunamis, volcanos, and monsoons are some of the environmental challenges faced by MNCs. Tsunamis are combinations of many waves in an ocean which caused cause problems when they move towards the shore. Ports are mostly carried away or distorted when they are subjected to intense tsunamis. This leads to big losses to the MNCs due to damage to their products. This problem has already affected the Philippines.
Monsoons are seasonal reversing winds that are accompanied by various precipitation changes. These winds are caused by asymmetric heating of the sea and the land. MNCs which deal with agricultural products are greatly affected by this change in precipitation. The farm produce can be damaged by excess rains which also leads to losses in the organization.
Volcanos are rupture of hot lava, volcanic ash, and other gases from below the earth’s surface. This rupture may destroy roads where the products are transported through or the farms which are sources of raw materials. This challenge also affects the organizations severely (BIDGOLI, 2018).
How can information technology assist with logistics and counterfeit items?
Counterfeit items are items that are added to the supply chain illegally for the benefit of somebody away from the organization. The rate at which these items are getting in the market is increasing greatly due to the greed of some workers. These items are obviously not as effective as the original product. The company’s products are, therefore, regarded as fake thus lowering the demand.
This problem can be combated by attaching GPSs, RFIDs, and QR codes on the cargo to enhance quicker verification and tracing in case of any additional cargo in the supply chain. Optical character recognition cameras should also be installed in port or other destinations to enhance the efficiency of the supply chains. Major such as are using state-of-the-art information technologies are now being used by various logistics companies including FedEx and UPS. This delivery technique has greatly minimized counterfeit items (BIDGOLI, 2018).
References
BIDGOLI, H. (2018). MANAGEMENT INFORMATION SYSTEMS. In H. BIDGOLI, Global Information Systems (p. 229). Boston: CENGAGE.