Final answer:
As the number of touch-points in a global supply chain increase, coordination challenges may intensify, while supply chain visibility may decrease. Production efficiency may improve, but it is not guaranteed.
Step-by-step explanation:
As the number of touch-points in a global supply chain increase, coordination challenges may intensify. With more touch-points, it becomes more complex to coordinate and manage different stages and stakeholders involved in the supply chain. This can result in delays, miscommunication, and increased costs. For example, if a product needs to travel from a factory to a port, then to a warehouse, and finally to a retailer, each touch-point adds a layer of coordination that must be carefully managed. Additionally, with more touch-points, supply chain visibility may decrease. It becomes more challenging to track and monitor the movement of goods at each stage of the supply chain. This lack of visibility can lead to inefficiencies, such as stockouts or excess inventory, and make it difficult to identify and address issues in a timely manner. While production efficiency may improve as technology and transportation methods advance, it is not necessarily a guaranteed outcome of increased touch-points in the supply chain. The benefits of production efficiency will depend on various factors, such as the adoption of automation, optimization of processes, and effective management of the supply chain.