"1Running head: MANAGEMENTAnalysis of Domestic and Global Supply Chain Management2IntroductionThe effective supply chain management ensures high efficiency, speed and quality ofbusiness operations. It is being used as an essential tool to gain a competitive edge to survive inthe marketplace. It plays a very prominent role in managing costs and financial profits of theorganization. It is an analytic tool which provides the best solution to move goods fromproduction center to end users after considering in detail the impacts of internal and externalbusiness environment.With the advancement of technology, the execution of complex supplychain operation has become easy. The sharing and processing of information which is verycrucial to make business as well as supply chain management decisions is done instantly with thehelp of updated technology. The availability of analytic software in the area of supply chainassists in selecting the most optimal solution (Farahani, Asgari & Davarzani, 2009).Difference betweendomestic and global supply chain management The objective of domestic and global chain management is to enhance the customer’svalue. However, there are several operational differences between domestic and global supplychain management. Geographical, political, economic and cultural diversity are essentialrequirements to be managed to get success in the supply chain operations. Due to technology era,global markets are available to a tiny business also. Thedifferences across the border involveadditional management concepts to work on because the global supply chain requiresmanagement at international level (AndreaMacDonald, 2006).Various possible differencesbetween global and domestic supply chain can be: 3Modes of transportationTransportation of goods is an important organ of the supply chain management. In caseof domestic supply chain management, the several options of transporting goods from themanufacturer to customers are available with the company to select from. Among all, the landtransportation is the most preferred option due to its speed and cost. While in case of globalsupply chain management, there is limited availability of sources to transport goods. Mainly twooptions are available, i.e. air ways or water ways to select from.It is possible to manage supplychain with the single mode of transportation in case of domestic business, while the supply chainof international business requires the use of multiple modes of transportation (Tompkins&Harmelink, 2004).Cost elementsThe number of cost elements required in the analysis for global supply chainmanagementare more compared to domestic supply chain management. Storage, insurance,transportation, technology and labor charges are important cost factors that are to be consideredin supply chain operations particularly in case of domestic business. Costing of supply chainoperation in case of the international business is very complex. Above all the cost factors ofsupply chain operations in domestic business, the government fees, taxation policies, exchangerates and tariffs are additionally considered in case of global supply chain management. Thesecost elements vary from one nation to another. As all these elements of cost are fluctuating innature, so may either have a positive or negative impact on the business profitability (Horch,2009). 4Level of coordinationIn comparison to the domestic supply chain, the level of coordinated efforts is demandedmore in the global supply chain management. The coordination of all the logistic activities whichare dispersed geographically is very challenging. Appropriate execution of planned distributionprocesses needs the well-coordinated efforts and activities. The responsibilities of logistics /supply chain managers in global business are comparatively more in number and critical innature. They have to compare and evaluate various alternatives to make the optimum decision.The essentiality of planning for the movement of goods and information in global business ismore compared to domestic business(Dittmann, 2014).SecurityDomestic supply chain management requires less security levels where it is easy to find atrustful business partner. Management has more awareness about regions and languages so theycan decide the required security levels.Comparing it with global supply chain management, thearea across the border is less familiar and there are many cultural differences so every companyneeds to follow predefined security steps to ensure the shipment delivery.If a company needs to fulfill all the security measures for each and every stage of thesupply chain- starting from supplying goods from warehouse (or any source) to the final deliverydestination. For example, U.S. Customs and border protection have suggested a “5 Step RiskAssessment Process” for guidance. This process includes selecting a secure business partner,shipment security and examination, personal security, method security, document control,facility, information technology security and security trainings & threats awareness programs(MHLnews, 2013). 5Information Technology enhancementsDomestic SCs need lesser IT usage. For example, a simple tracking system can updatethe status of the shipment to every component. If a website is not possible, then local marketingis also a good medium to get business for the domestic supply chain. However, global marketscannot be handled easily without proper involvement of IT. As compared to domestic chains,global SCs should be maintained through SaaS (Software as a service) model, which enhancesthe visibility across the Supply Chain, scalable and flexible system (Ahearn, 2011). Moreover,increased technology usage has become an enabler for various fancy methods like the RFIDtracking and streamlining the whole Supply Chain Management business through Social Media(FlashGlobal, 2016).Cultural DifferencesGlobal differences have been proved to be a reason for the clashes of business. DomesticSCs involve the local staff, local suppliers and every entity according to the same religion. Whenwe compare it with global SCs, the whole system is spread across the globe. Various religions,region and languages are involved. Due to these differences, it becomes difficult to manage suchbusiness.Sometime, dealing with the local suppliers and hiring the staff reduces the chances ofpossible issuesof cultural differences (Turker, &Altuntas, 2014)Risk ManagementFor a domestic SC, the risk factor is much lesser than it is in the global SC. Domesticsystems need not to worry about speed, quality, safety or any other problem at the level of globalmarkets. In global Supply Chain Systems, there is risk at every step. The different risk factorscan be Quality Management of goods, security against terrorism or any other activists, safety "