• Micha Veen

Five Challenges That Could Pose a Risk to Your Supply Chain

Supply chain risk management should be a substantial component of your overall supply chain management system. Mitigating risks can help your business overcome internal and external threats that could be fatal for small or medium enterprises. It is best to perform regular risk assessments and supply chain mapping to determine potential challenges across the entire supplier network.

Here are five challenges that may affect your supply chain:

  • Local economic climate. An unstable economy may cause revenue losses, reduced production, or business liquidation. These challenges affect your supplier network, creating gaps in your supply chain and additional administrative costs to source new suppliers. Economic factors such as inflation and interest rates affect your customer base - posing a threat to consumer purchasing power and your profits.

  • Diverse supply channels. There is a growing demand for diversification of order fulfilment options amongst consumers. Selling products through numerous channels creates more complex and volatile supply chains that require more rigorous management. Third-party marketplaces and drop-shipping can create additional threats to customer satisfaction levels that you must mitigate through your supply chain strategy.

  • Cybersecurity. Moving towards cloud-based tracking and business operations poses the threat of data corruption, malware attacks, privacy breaches, and fraud. Supply chain risk consulting includes implementing online security systems to ensure your operations are protected from malicious intent. This includes alerting stakeholders of security protocols and holding them accountable for infringements.

  • Environmental, social, and governance factors (ESG). ESG factors such as climate change, fair trade, and environmental sustainability require your supply chain strategy to be changed. More consumers demand supply chain transparency in the products and services they purchase. This shift in consumer attitudes dictates everything from your operations into your supply chain, from how you source your raw materials to your product packaging and delivery methods.

  • International trade wars. Global markets often affect tier two and three suppliers that export raw materials or manufacture packaging and production components. Trade bans, sanctions, strict import legislation, and increased tariffs may cause delays, price increases, and material shortages. Understanding the international business climate can help you prepare for potential disruptions along your supply chain

Remediating and/ or eliminating your supply chain risk is crucial to manage your enterprise risk, this is why it's critical to understand, manage and actively reduce this risk. Only then, you're able to run a resilient supply chain model


Choose Unique Excellence as Your Preferred Supply Chain Innovation Consultants


Unique Excellence offers comprehensive, innovative, and pragmatic Supply Chain Management solutions across Australia for small and medium enterprises. We are dedicated to helping you achieve continuous supply chain innovation through our proven SCOR-ESG model, combining a well-defined Supply Chain Operations Reference model with the latest sustainability frameworks. We examine your supply chain performance by using sophisticated data analytics to identify opportunities, mitigate risks, creating resilience and bolster business development throughout your supplier network.


Our experienced consultants offer hands-on and meaningful industry insight to develop an efficient supply chain strategy to optimise your supply chain operations. We help build smarter supply chains informed by economic and technological trends. Our professional team will gladly answer your questions to help you make more informed business decisions.


Contact us for more information.

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