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This article was automatically translated from the original Turkish version.

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AuthorAhmet Burak TanerNovember 29, 2025 at 7:07 AM

Global Supply Chain

The global supply chain is the international organization of all production, transportation, storage, and distribution processes from raw materials to final products. Today, the production of a single product rarely occurs in one country alone; its components are manufactured across different continents, assembled in another region, and marketed on a global scale. This complex structure forms the foundation of modern economies.


The development of logistics infrastructure, digitalization, and access to low-cost labor have encouraged the growth of global supply chains. However, this expansion has also brought along vulnerabilities. External shocks such as pandemics, natural disasters, or geopolitical crises can cause disruptions at any point in the chain, affecting the entire system. Therefore, the global supply chain is regarded not only as an economic system but also as a strategic asset.


From an anthropological perspective, the supply chain represents not only the movement of goods and services but also the global interaction of cultures, business models, and forms of labor. The origin of a product may lie thousands of kilometers away from where it is consumed; this makes it harder for consumers to make informed choices and underscores the importance of concepts such as ethical production and traceability.

Production and Supply Stages

A supply chain consists of five fundamental stages: sourcing, production, storage, transportation, and distribution. The first stage, sourcing, involves acquiring raw materials from natural resources. Agreements with local and international suppliers at this stage directly affect the quality of the chain. These sourced raw materials are then processed in different facilities during the second stage, production, to become final products.


The storage stage that follows production ensures the safe preservation of products until shipment. Warehouses designed to meet diverse needs—from cold chain products to fragile materials—are a critical component of the logistics chain. The transportation stage enables the movement of products to distribution centers and from there to retail points. Road, sea, air, and rail transport form the primary carriers of this process.


Finally, distribution ensures that products reach consumers. With the rise of e-commerce, this stage has increased the importance of individual delivery services. Logistics companies are now required to deliver not only large shipments but also small packages directly to end users. In this process, concepts such as automation, data analysis, and customer satisfaction have come to the forefront.


Crises and Vulnerabilities

While global supply chains generally operate efficiently, they are also highly vulnerable. The COVID-19 pandemic that erupted in 2020 is a concrete example of this vulnerability. The shutdown of production facilities in China caused automobile factories in Europe to halt operations. Similarly, port closures and container shortages immobilized the global distribution chain.


Geopolitical crises also threaten supply chains. The war between Ukraine and Russia caused major disruptions in grain and energy supplies, putting food security at risk in Africa and Asia. Semiconductor production centered in Taiwan has raised concerns in Western countries about technological dependency. Such situations have driven nations toward policies of “strategic self-sufficiency” in critical sectors.


Climate change and natural disasters are also major threats. Events such as droughts, floods, and wildfires can halt production or block transportation. Supply chains must become more flexible, agile, and predictable to address these risks. Crisis scenarios are now an integral part of operational strategies rather than mere planning exercises.

Digitalization and New Technologies

Technological advancement has made supply chains more traceable and manageable. Applications such as AI-driven route optimization, blockchain-based product tracking, and IoT-enabled temperature control have accelerated processes while increasing transparency. These developments offer significant advantages, especially for transporting sensitive goods such as pharmaceuticals and food.


Blockchain technology records the entire journey of a product from production to consumption in a transparent manner. This reduces product counterfeiting and enables verification of ethical production practices. Similarly, big data analytics allow for demand forecasting, reduction of inventory costs, and early identification of bottlenecks in the supply chain.


Solutions such as autonomous vehicles and drone deliveries, though still in experimental stages, have the potential to fundamentally reshape the structure of supply chains in the future. Particularly in metropolitan areas, micro-logistics solutions reduce last-mile delivery costs, enhancing both efficiency and sustainability.

Green Logistics and Sustainability

The environmental impact of supply chains is intensely debated in terms of carbon emissions, energy consumption, and waste management. Today, ecological footprint is as central to logistics decisions as speed and cost. The European Union’s “Green Deal” strategy, for instance, compels companies to adopt environmentally friendly policies.


To reduce their carbon footprint, many companies are transitioning to electric trucks, ships powered by biofuels, and rail transport. At a micro level, sustainable practices such as making packaging recyclable and installing solar panels in warehouses are gaining importance.


Consumer habits are also driving this transformation. The “carbon-neutral product” label has become a deciding factor for many customers. This forces companies to transform not only their products but also the ways in which they transport and deliver them. Logistics is no longer merely a transportation function; it has become a system bearing environmental and ethical responsibilities.

Reshoring and Global Protectionism in Supply Chains

In recent years, as global crises have become more frequent, countries have increasingly adopted a trend of “reshoring” in strategic sectors. Governments seeking to reduce dependence on foreign sources—particularly in healthcare, defense, and food—have begun relocating production within their own borders. This has brought to the fore a new economic orientation known as “global protectionism.”


Reshoring can reduce transportation costs and make supply chains more flexible and responsive. However, it may also entail abandoning economies of scale and weakening competitiveness. For companies, this requires a reconfiguration of production and distribution strategies.


This transformation in supply chains has also prompted a reevaluation of global trade agreements. Economic actors such as the EU, China, and the United States are redefining their trade policies, and logistics networks are being reshaped accordingly.

The Rise of E-Commerce and Micro-Logistics

The rise of e-commerce has transformed traditional supply chains. Consumers now demand not only affordable products but also fast and reliable delivery. This has made the concept of “last-mile logistics” more critical than ever.


E-commerce giants are developing solutions such as micro-warehousing, drone deliveries, and mobile distribution networks to position themselves closer to customers. These systems, however, also generate new challenges related to traffic congestion, environmental impact, and labor management.


Micro-logistics models must operate in harmony with urban infrastructure, local regulations, and consumer behavior. Therefore, e-commerce logistics must be addressed not only through technology but also through spatial planning and urban strategy.

The Legal and Ethical Dimensions of Supply Chains

Supply chains involve not only economic but also ethical and legal responsibilities. Issues such as child labor, forced migrant labor, and environmental degradation necessitate ethical scrutiny of supply chains.


The European Union’s 2023 Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) require companies to be accountable not only for their own operations but also for the behavior of their suppliers. This development makes it mandatory for firms to conduct ethical audits throughout the entire supply chain.

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Contents

  • Production and Supply Stages

  • Crises and Vulnerabilities

  • Digitalization and New Technologies

  • Green Logistics and Sustainability

  • Reshoring and Global Protectionism in Supply Chains

  • The Rise of E-Commerce and Micro-Logistics

  • The Legal and Ethical Dimensions of Supply Chains

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