Avoiding Supply Chain Risks in Manufacturing | Infiniti Identifies the Supply Chain Risk Factors Affecting Manufacturers
A well-known market intelligence company, Infiniti Research, has announced the completion of their latest article on key supply chain risk factors for manufacturers. In this blog, the key supply chain risk factors that affect the overall profitability of manufacturers are identified. Experts at Infiniti also highlights the key strategies to avoid them.
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Top supply chain risk factors for manufacturing companies. (Graphic: Business Wire)
The rapid globalization of businesses has made it imperative for executives and risk managers to reassess the risks facing their organizational processes and their supply chain activities. Effective supply chain risk management in manufacturing companies is often hindered by factors such as supplier failure and other non-traditional risks. Furthermore, supply chain vulnerability is also increasing due to risks including supplier relationships, manufacturing process, and shipment of finished goods.
Is the absence of an effective supply chain risk management strategy increasing your vulnerability to challenges? Request a free proposal to know how Infiniti’s solutions can help you overcome this.
Top supply chain risk factors for manufacturing companies
Disruptions in distribution
When a key supplier moves their operations to another country, it can have a significant impact on the cost of production and raw materials for a manufacturer. Supply chain risk managers must ensure that regular communication and the presence of strong contract between value parties to prevent such unforeseen contingencies.
Infiniti’s risk management strategies enable organizations to effectively monitor and control business risks coming their way. Want more information? Get in touch with our experts
Laws and regulations
The changes in laws and regulations can greatly affect the degree of supply chain risk faced by manufacturing companies. For instance, if the wage laws and overtime regulations in a particular region changes, it would eventually result in more costs and rising overheads for the company.
Market competition
There’s a growing concern with mergers and acquisitions (M&A) of big companies across industries. These M&As have the potential to create monopolies, allowing organizations to eliminate competition and make it harder for smaller companies to survive in the market. Competitors are also continuously changing and innovating their strategies.
Labor issues
When a workplace is unionized, it becomes difficult to adjust employee contracts as and when required. For example, laying off employees may prove to be tough during periods of low customer demand or relocation of assets. Adequate training must be given to employees in order to maximize productivity and reduce risks.
Learn more about how Infiniti’s solutions can help your business in the manufacturing industry. Request for more information.
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us
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