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 : 486
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Skip in 10
Global supply chain risks have a significant impact on retail operations, as they can disrupt the timely availability of products, increase costs, and affect customer satisfaction. Events such as natural disasters, trade wars, or shipping lane blockages can create sudden shortages of inventory, delay deliveries, and force retailers to seek alternative suppliers at higher costs. For instance, a hurricane can destroy supplier facilities or infrastructure, while a geopolitical conflict may impose tariffs or restrict exports, affecting both domestic and international sourcing. These disruptions not only impact the financial performance of retail businesses but also damage brand reputation if customers consistently face stockouts or delayed services. To handle such challenges, retailers must focus on building a resilient supply chain. A resilient supply chain is flexible, adaptable, and capable of recovering quickly from unexpected disruptions. One key strategy is diversification of suppliers. Relying on a single supplier or
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