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 : 549
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Skip in 10
Global supply chain risks have become increasingly significant for retailers due to the complexity and interdependence of modern supply networks. Factors such as natural disasters, geopolitical tensions, trade wars, port congestion, cyber-attacks, and pandemics can disrupt the flow of goods, leading to inventory shortages, increased costs, delayed deliveries, and ultimately, loss of customer trust. Retailers with extended global supply chains are particularly vulnerable because delays or disruptions at any point—whether in raw material sourcing, manufacturing, or transportation—can ripple across the entire network. For example, a blockage in a major shipping lane like the Suez Canal can stall shipments for weeks, causing cascading delays in downstream distribution. Similarly, trade wars or tariffs can suddenly increase costs or limit market access, forcing retailers to adjust pricing or sourcing strategies rapidly. To build a resilient supply chain, retailers must adopt a proactive approach that anticipates risks and incorporates flexibility at multiple levels. One key strategy is diversification
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