Why Should You Be Concerned About The Security of Your Supply Chains as International Relations Become More Uncertain and Un Predictable. Are you noticing supply problems?
Security and stability of your supply chain is often overlooked and is seldom appreciated until a crisis brings its importance to the fore and starts costing your business money.
With the recent unprovoked invasion of Ukraine, coupled with impending dispute with the EU over the Northern Ireland Trade agreement our trade relations with Europe have been thrown into an uncertain future.
If you are currently purchasing products either manufactured in Europe or at the very least imported via Europe then a plan B with regard to alternate supply chains needs to be at least on your radar. The same is true with regard to products from China. With China’s tacit support of Russia’s invasion of Ukraine coupled with expansion in the South China Sea and aggressive overtures to Taiwan make for a very uncertain futures in that area as well. Therefore if you are buying products or materials directly from China then once again it would be prudent to re evaluate the security of your supply chain with all theses threats and uncertainties taken into consideration.
What would the effect on your supply chain be if prohibitive import/export duties were to be imposed on products from the EU. Alternatively what would happen if sanctions were to be imposed on imports from China. How would this effect your supply chain? Could you even source products?
Unpredictable international relations by their very nature often go hand in hand with volatile exchange rates adding unexpected costs.
Along with volatile exchange rates often comes delivery problems, wether as a result of spiralling fuel costs or import duties and customs delays all of which combine into a potential perfect storm
Any pre cursers to supply chain problems often manifest themselves in extended delivery times or missed delivery dates, partial deliveries and back orders If you are experiencing these symptoms from your current suppliers then prepare for things to get worse.
As a direct result of these very alarming prospects many U.K. organisations are actively switching their supply chains to safer and more reliable UK manufacturers. This will undoubtedly save time money and resources making sure you receive products on time and on budget.
Securing your supply chain is key to ensuring cost effective, timely and reliable supply of goods to your business or organisation.
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