Supply Chain Risk: When Bad Things Happen to Good Cargo
As companies seek to develop a foothold in new markets or source from lower-cost countries, supply chains are being stretched with tighter demands on cost, transit time and quality. These business models introduce new challenges, including multiple modes of transportation, customs, different currencies, several languages, laws, carriers and more importantly, longer supply chains.
And the longer goods remain in the supply chain, the greater the risk from theft, damage, natural disasters and other challenges.
As modern supply chains are often global in scope and bear heavily on a firm’s fiscal health, supply chain risk poses a greater threat than any other business area. Risk factors include quality and safety challenges, supply shortages, legal issues, security problems and regulatory and environmental compliance.
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