Solution

4.0 Strategic Logistical Implications of Globalisation

4.1 Globalisation and Importance; Supply Chain and Logistics Context

In line with the Kandil et al. (2020) definition, globalisation represent a strategy pursued in transitioning and exchanging in the world. The outcome of this is increasing level of interaction in different areas of practice noticeable by the level of success of manufacturers. For WoodPlc practice, through globalisation of their supply chain integration, IT systems sourcing in different markets both in Middle East and internationally is important to procure the various systems. For achievement of the process, manufacturers demands are inappropriate for successful initiatives (see figure 7);

Figure 7:Global Perspective and SCM practices of operations

4.2 Strategic considerations linked with global nature of supply chain

For success of strategic practice, the best practice entail pursuing red ocean as opposed to blue ocean approach. In line with Mesut (2021), the priority is for blue ocean strategy which include obtaining and development of a detailed (uncontestation) of the markets with a likelihood of transitioning far from red oceans (non-developed, high-level saturation) as illustrated in figure 8;

Figure 8:Summary of the Red and Blue Ocean and Strategic Views

For UAE, which is the environment of WoodPlc operations, majority of the competing organisations engage similar supply chain managers to engage suppliers. This lead to an achievement of a globalised commodisation. Hence, as a best practice, a shift on supply chain management imply transitioning from red to the blue ocean practice. A case example include WoodPlc following modern-based e-Commerce teams, multi-channelled strategy, globalisation embraced and competition differentiated. Hence, suppliers chains at the start are noted in WoodPlc procurement as being altered for integrating an e-commerce. The result of the process is collaborating for global initiatives and service provision in the down and upstream supply chain. For WoodPlc organisation, prioritising on initiation of modernised technologies for promoting supply chain success and promoting responsive nature to boost entire revenues and acquiring profits.

4.3 Strategic Logistics Risks and Opportunities for Globalisation

For modern business sector, change is important without any alternative. In specific, since emergence of COVID-19 pandemic and economic challenges encountered, Vidrova (2020) note risks as significantly evolving and prevalent over time. Strategic logistical risks and prevalent chances categorised to environment, networking and organisations (see figure 9);

Figure 9:Supply Chain Logistics Risk and Opportunities management

Environment Risk- The process include various risks and opportunities emergence from the uncertainties of environments.  The risks emergence is directed by their characteristic. In WoodPlc organisation, the environment factors lead to a prolong oil and gas operations having an influence on oil and gas sector operations.

Organisation Risks- This entail various supply chain partnerships having boundary and labour forms and production uncertainty to advance technologies. For WoodPlc case, this negatively impact how the contracting process of onshore and offshore oil and gas operations in UAE as of 2022. This has a direct impact on sustainable WoodPlc operations.

Network-Related Risks– This is achieved by an increased supply chain involvement successfully. According to Colicchia et al. (2019), this lead to damage occurring through a suboptimal engagement by the organisations in supply chain leading to networks associated with the sources of risks. The influence of this for WoodPlc organisation contribute to disrupting their supply chain with opportunities of most of suppliers transitioning far from an entity.

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