A Case Study of Singapore

1956 Words Jan 10th, 2018 8 Pages
The country is now home to the world's second-largest container port according to the World Shipping Council (2013). The country's position as a leading trade makes it a natural place to find solutions to global supply chain issues, and has also encouraged a significant amount of foreign direct investment in the country. Foreign companies have set up shop in Singapore, often in either services or retail. This paper will analyze some of the issues that foreign firms dealing in Singapore have with respect to global supply chain management.
Case Study #1: Starbucks
Starbucks has a significant retail presence in Singapore, but it also benefits from the country's geographic position in a couple of ways. The first is that Singapore is situated in the heart of a fertile coffee-growing region critical islands like Java, Sumatra and New Guinea are nearby, as are high volume growing regions like Vietnam. Starbucks has set up a regional distribution center in Singapore in order to manage the flow of goods and services throughout Asia, both in terms of raw materials and finished goods.
Changi Airport Group (2013) notes that Starbucks is one of many Western countries to have such a regional distribution center. With stores throughout Southeast Asia, the coffee company can organize its goods in Singapore for onward distribution, either overland to Malaysia and Thailand, or over sea to Indonesia…