There are also the cultural constraints which can be very significant across borders, as evidenced by the Cultural Dimensions Model as defined by Dr. Geert Hofstede (Minkov, Hofstede, 2011). The five cultural dimensions he has defined have a direct impact on the overall performance of a supply chain at the communication and collaboration level. Managers given the task of creating a multinationally-based supply chain need to pay attention not only to supplier performance but also the cultural factors that can significantly impact their operations for years to come.

The most important factor for companies operating a supply chain domestically or internationally across borders is the need for managing all relationships and dependencies to Demand Forecast Accuracy (Hofman, 2004). The ability to orchestrate the more fundamental aspects of supply chain performance including order cycle times, Work in Process and Finished Goods...

The orchestration of demand across the entire hierarchy of supply chain metrics becomes exponentially more difficult when a supply chain is international in scope.
Figure 1: Hierarchy of Supply Chain Metrics

Source: (Hofman, 2004)

References

Hofman, D. (2004). The HIERARCHY of SUPPLY CHAIN METRICS. Supply Chain Management Review, 8(6), 28-37.

Minkov, M., & Hofstede, G. (2011). The evolution of Hofstede's doctrine. Cross Cultural Management, 18(1), 10-20.

Theodore, P.S., & Anthony, S.R. (1998). Some propositions on intermodal transportation and logistics facility development: Shippers' perspectives. Transportation Journal, 37(3), 13-24.