Globalization impacts supply chain management by expanding networks and increasing complexity. Since companies that source materials and components from diverse international suppliers can face amplified effects of disruptions (e.g., natural disasters or geopolitical events), careful coordination and risk management are required.
Cultural differences, varying regulations, and logistics challenges also pose additional hurdles in global supply chain operations. However, globalization offers opportunities for cost reduction, market expansion, and access to a broader pool of suppliers and customers.