FROM: Operation Manager
TO: Warehouse Department
DATE: 2nd September, 2015
SUBJECT: Importance of Effective Supply Chain Design
Our company is in need of a supply chain design, which, I believe, will enhance its sustainability and profitability. Supply chain design is critical for the overall success of our company particularly on international operations. It explains how clients demand can be attained profitably through efficient allocation of customers’ orders. Supply chain network design enables the warehouse to store its products closer to its customers, hence, reducing its overall cost (Watson, Lewis, Cacioppi & Jayaraman, 2013). In addition, it assists in the adjustments when unforeseen circumstances emerge. Since our country is a member of the WTO, the company stands to benefit from international operations.
The World Trade Organization (WTO) emerged from the Uruguay Round as an intergovernmental organization to regulate international trade. The agency was established in 1995 to facilitate smooth flow of trade among member states through conforming to trade policies. The WTO preceded the GATT (General Agreement on Tariffs and Trade), which was established in 1947. One of the benefits of being a member of WTO is securing of gains from trade as the member state maintain its sovereign control over its domestic operations (Jones, 2015). However, the WTO has made developing countries become vulnerable and exploited by powerful nations I terms of investments and loans. The agency is more concerned on profits than human and labor rights, as it does not promote labor standards.
The WTO is also involved in settling trade disputes among its member states. For instance, in August 2012, Argentina complained of certain measures undertaken by the US on the importation of animals and animal products from Argentina. The US supported its stand by stating that such measures were meant to eradicate the spread of infectious livestock diseases. According to the WTO, the US had violated various sections of Article I and XVI of the WTO Agreement (“United States — Measures Affecting the Importation of Animals,” 2015). The WTO initiated the dispute resolution process by establishing a panel to assess the situation, adopted the report, with recommendation to push for conformity of the measures. I agreed with the WTO resolution to exercise judicial measures, since every member state has to respect the rules set by the world agency.
Jones, K. A. (2015). Reconstructing the World Trade Organization for the 21st century: An institutional approach. New York, NY: Oxford University Press.
United States — Measures Affecting the Importation of Animals, Meat and Other Animal Products from Argentina. World Trade Organization. Dispute Settlement: Dispute DS447. Retrieved on 2 Sept. 2015 from https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds447_e.htm
Watson, M., Lewis, S., Cacioppi, P. & Jayaraman, J. (2013). Supply chain network design: Applying optimization and analytics to the global supply chain. Upper Saddle River, N.J: FT Press.