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 :
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Skip in 10
Global supply chain risks have become a major concern in modern retail business due to increasing globalization and interdependence of markets. Retail supply chains now extend across multiple countries, involving suppliers, manufacturers, logistics providers, and distribution centers. While globalization has improved product availability and reduced costs, it has also increased vulnerability to disruptions. Natural disasters such as earthquakes, floods, and pandemics can suddenly halt production and transportation. Similarly, trade wars can result in increased tariffs, import restrictions, and supply shortages. Shipping lane blockages, port congestion, and geopolitical conflicts can further delay deliveries and increase operational costs for retailers. These risks directly impact inventory availability, customer satisfaction, and business profitability. To manage these challenges, retailers must develop resilient supply chains capable of absorbing shocks and recovering quickly from disruptions. Supply chain resilience refers to the ability to anticipate risks, respond effectively to disruptions, and maintain continuity of operations. One important strategy is supplier diversification. Retailers should avoid dependence on a single supplier or geographic region. By sourcing products from multiple suppliers across different locations, retailers can reduce
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