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Running head: GLOBAL SUPPLY CHAIN LOGISTIC CHALLENGES

Global Supply Chain Logistic Challenges
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GLOBAL SUPPLY CHAIN LOGISTICS CHALLENGES

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Global Supply Chain Logistics Challenges
A global supply chain refers to a worldwide system used by companies to generate and
disseminate products and services. Raw materials are used in the initial stage, and the final
commodities and services are disseminated to consumers in the final stage. Numerous entities
such as retailers, distributors, warehouses, freight forwarders, manufacturers, and suppliers are
involved in the making up of the global supply chain (Golinska, 2014). The entities play
significant roles such as facilitating the distribution of raw materials and resources across the
globe. However, global supply chains experience logistic challenges such as delays, lead times,
complicated cash flows, management of data, risk exposure, compliance and accountability,
quality defects and control, language barriers, time zones, and the costs associated with exchange
rates in foreign countries.
Green Supply Chain
In the past few years, the world has experienced an increase in environmental problems.
Such has caused serious global warming and climate change. Moreover, the unavailability of
natural resources and the pollution of both air and water have significantly affected the flora and
fauna. As such, the concept of the green supply is mainly focused on eradicating air control and
the degradation of the environment through the application and use of green practices in running
businesses. The main concept behind the green supply chain is to facilitate environmental
sustainability (Abdul Rehman Khan, 2021). It is therefore essential to note that, the use
application of a green supply chain in businesses will help significantly in minimizing the
production costs and environmental pollution, while also upsurging economic growth. Also, it
helps in creating a significant competitive advantage by satisfying consumers and portraying a
positive reputation and image. As new business entities come to being, the green supply chain

GLOBAL SUPPLY CHAIN LOGISTICS CHALLENGES

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concept is broadly used to enhance environmental sustainability. Environmental sustainability is
identified through the reduction of waste, the recycling of a sustainable supply chain, green
manufacturing, and corporate social responsibility (Koh, 2016). The incorporating of effective
environmental procedures in the company processes, include integrating activities such as buying
the raw materials, designing the goods, production, and assembling of the gods and services, and
the dissemination of the end product. A green supply chain comprises the addition of value,
through operating the entire chain. Therefore, the green supply chain is specifically focused on
the reduction of waste, water, and air pollution.
The Cost of Congestion in the Transportation System
System users in the transportation industry experience congestion cost, when one or more
users are added into the system after it exceeds or approaches capacity. The main congestion
costs are the delay caused by one means of transport on another and the prevention of attaining
access to a network by a vehicle. Congestion has significant effects. For instance, it causes an
increase in pollution because of the decrease in speed. Furthermore, travel time has a significant
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