Effective cost management strategies in global supply chains

Abstract

This review paper explores effective cost management strategies within global supply chains, highlighting the necessity for businesses to adapt and innovate in response to complex logistical operations, economic fluctuations, and geopolitical risks. It delves into strategic sourcing and procurement, inventory management techniques such as Just-In-Time (JIT) systems, logistics and transportation optimization, and the pivotal role of technology and automation in enhancing efficiency and reducing costs. The paper identifies gaps in current literature, particularly the need for more research on sustainable practices and risk management strategies. Recommendations for practical implementation are provided, emphasizing flexibility, resilience, and the importance of leveraging technology. Future research directions are suggested to further understand the dynamics of global supply chain cost management and the integration of sustainability practices. Keywords: Global Supply Chain, Cost Management, Strategic Sourcing, Inventory Management, Supply Chain Technology, Risk Management.