Global supply chains refer to the interconnected networks that companies use to source materials, manufacture products, and distribute them to consumers around the world. These chains involve multiple steps, including raw material extraction, production, and transportation, often spanning several countries. This system allows businesses to optimize costs and access a wider market.
The efficiency of global supply chains relies on various factors, such as technology, logistics, and trade agreements. Disruptions, like natural disasters or political instability, can significantly impact the flow of goods. Companies must adapt to these challenges to maintain their operations and meet consumer demand.