CStore Decisions – To combat these interruptions, retailers should take an agile approach to the development and maintenance of their global supply chains.
BRP’s new report, called Tariffs, Terrorists & Tsunamis: Minimize the Impact of Supply Chain Disruptions with Agile Strategies, shows that the recent increases — and threat of increases — in tariffs are causing disruptions to today’s retail supply chains.
According to the report, while tariffs are currently the hot topic, supply chains are vulnerable to many unexpected disruptions, including terrorism and natural disasters.
BRP said that today, more than ever before, it is vital that retailers adopt an agile approach to the development and maintenance of their global supply chains
The need to have the right organization and processes in place to continuously review and adjust the flow of goods from supplier to customer is imperative. An agile capability means that retailers can rapidly and cost effectively adapt to external forces, while maintaining, or even enhancing, service to consumers.
Most retailers rely heavily on imported merchandise, and over the last two decades, retail supply chains have become more complex and increasing global in nature. Finished goods may be sourced from many locations, supported by raw material and packaging supply chains that extend even further.
At the other end of the supply chain, consumers in an omni-channel environment may be located anywhere across the globe. As products cross international borders, there is the potential for costs to increase due to tariffs.
“While tariffs are today’s area of focus, supply chains can be unexpectedly disrupted by the three T’s — tariffs, terrorists and tsunamis,” said Ken Morris, principal, BRP. “To combat these potential interruptions, smart retailers take an agile approach to the development and maintenance of their global supply chains and ensure they are able to rapidly react and respond.”
Read the full article: BRP Report Reveals Supply Chain Disruptions