Doing business abroad definitely has its benefits, but it’s also risky business as the global supply chain can bring on a slew of unique disruptions, political unrest being a top concern right now for international retailers.
Bangladesh, whose apparel industry accounts for 80 percent of the country’s total exports, just started breathing easy after dealing with the aftermath of a 2013 factory fire. Unfortunately, now a period of intense political unrest is causing major disruptions in raw material supply. The garment industry is experiencing big losses due to a decline in orders from international retailers, order cancellations, soaring air freight charges, production shortfalls and higher transportation costs.
Although it’s impossible to completely eliminate risk from your supply chain, being aware of the possible risks can help to mitigate any issues that may arise. Here are four risks that retailers need to prepare for when doing business abroad; especially in emerging markets.
Global business is risky business because the global supply chain can deliver efficiency, but can also increase risk in the process. Although it’s important for CPOs to pay particular attention to reducing costs and generating financial value, especially during difficult market conditions, it’s vital to establish a balance between focusing on costs and risks. Effectively mitigating risk areas can be a pivotal step toward long-term success. How are you bolstering your risk management strategies for global growth?
By Mickey North Rizza, VP of Strategic Services at BravoSolution