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Financial Stumbling Blocks To Build Resilient Supply Chains By Benjamin Gordon

Blocks To Build Resilient Supply Chains

No business owner wants to experience a disruption in their supply chain, especially given the risks of doing so – missed deadlines, worsening customer service, and rising costs. As a result, many businesses prioritize building resilient supply chains as part of their larger approach to financial success. However, too often, these efforts can be thwarted by unexpected roadblocks that limit resource availability or reduce efficiency. In this blog post, Benjamin Gordon discusses how to spot common financial stumbling blocks when building resilient supply chains and the practical steps you can take to overcome them.

Benjamin Gordon Lists Financial Stumbling Blocks To Building Resilient Supply Chains

Building Resilient Supply Chains can be a tricky and expensive endeavor, says Benjamin Gordon. With the majority of supply chains now extending globally, many organizations have to grapple with financial constraints when it comes to strengthening their current models. Financial Stumbling Blocks are any issues that hinder an organization’s ability to build Resilient Supply Chains due to budgetary restraints or other cost considerations.

One major stumbling block is inflation, which happens when there is an increase in prices for goods and services over time. This impacts Resilient Supply Chains because companies have to pay more for the same resources they may have used in the past, eating away at profits and causing a strain on operations. Inflation causes Resilient Supply Chains to become less efficient as they try to cope with the added costs.

Another financial stumbling block Resilient Supply Chains have to face is fluctuating exchange rates. This impacts Resilient Supply Chains because companies may be operating in multiple countries, and the currencies those countries use can be different from one another. When exchange rates change, it can mean a rise or fall in prices for goods and services that Resilient Supply Chains need, making it difficult to budget properly.

A third financial stumbling block Resilient Supply Chains have to grapple with is increased transportation costs due to rising fuel prices. As oil prices increase, Resilient Supply Chains are faced with having to pay more for shipping and transport fees which cut into their profits and reduce efficiency. This makes Resilient Supply Chains more expensive to maintain, leading many organizations to look for alternative transportation methods.

Finally, Resilient Supply Chains, as per Benjamin Gordon, are often hampered by taxes and tariffs on the goods they purchase or transport between countries. Tariffs can lead to price increases which Resilient Supply Chains must account for in their budgeting, making their task of building Resilient Supply Chains even harder.

Benjamin Gordon’s Concluding Thoughts

According to Benjamin Gordon, the financial stumbling blocks Resilient Supply Chains face can be very difficult obstacles to overcome. In fact, one study found that 41% of supply chain executives said that lack of capital was a major factor preventing them from making their operations more resilient.