A global supply chain refers to the interconnected network of organizations, individuals, resources, and activities involved in the production, distribution, and delivery of goods and services across multiple countries and continents.

At a high level, the global supply chain can be broken down into several key components, including sourcing of raw materials, manufacturing, transportation and logistics, and distribution to end customers. Each of these components involves a complex network of suppliers, vendors, manufacturers, distributors, and other stakeholders, many of whom are located in different parts of the world.

To understand how a global supply chain works, let’s consider the example of a company that produces smartphones. The company may source raw materials, such as metals and minerals, from mines in several countries, including China, South Africa, and Brazil. These raw materials are then transported to manufacturing facilities located in countries such as China, Vietnam, or Taiwan.
At the manufacturing stage, the company assembles the various components to produce finished smartphones. These smartphones are then transported to distribution centers, often located in other parts of the world, where they are stored, packaged, and shipped to end customers.

Throughout this entire process, the company must manage a complex network of suppliers, manufacturers, logistics providers, and other stakeholders to ensure that the products are delivered on time, meet quality standards, and comply with various legal and regulatory requirements.

The success of a global supply chain depends on effective communication, collaboration, and coordination among all the parties involved. It also requires robust systems and processes for managing inventory, tracking shipments, and monitoring performance metrics to ensure that the products are delivered efficiently and cost-effectively.