Question
Examine the impact of Global Supply Chain risks. Discuss how a retailer can build a "Resilient Supply Chain" to handle unexpected disruptions like natural disasters, trade wars, or shipping lane blockages. Provide strategies for risk mitigation.
Answer :
Word Count : 682
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Skip in 10
Global supply chains have become increasingly complex and interconnected, making retailers more vulnerable to a variety of risks that can disrupt the flow of goods, increase costs, and affect customer satisfaction. Global supply chain risks can arise from multiple sources, including natural disasters, geopolitical tensions, trade wars, pandemics, transportation disruptions, cyber threats, and sudden demand fluctuations. For example, a natural disaster such as an earthquake or flood can damage manufacturing facilities or transportation infrastructure, delaying shipments. Trade wars and tariffs can increase costs and limit the availability of imported products. Similarly, blockages in critical shipping lanes, like the Suez Canal incident, can halt the movement of goods for days, creating inventory shortages. These disruptions not only affect operational efficiency but also erode consumer trust and reduce a retailer’s competitive advantage. The impact of such risks on retailers is multifaceted. Financially, they can result in increased procurement costs, emergency shipping charges, and penalties for late deliveries. Operationally, supply chain disruptions may force retailers to adjust inventory levels, ration scarce products, or switch
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