A supply chain is comprised of preparation, production, and distribution. The main processes of supply chain management include data management, logistics management, and relationship management. You should have clarity of all the important supply chain processes. You should be well aware of the changes in domestic/foreign procedures of organizations, weakness in production, relation with supply chain partners and more.
Whether you handle small business or large, the success of your business depends on the performance of your supply chain. Making a supply chain successful is all about making any business successful. Poor supply chain contributes to business failure. There are so many factors, rules and regulations can impact supply chain so you should be aware of it.
Millions of industries or people from all across the globe rely on supply chain management. If one element within this chain impacted, then the rest of the chain will be impacted. What actually impacts the supply chain? Rules and regulations of trade surely impact it. Let’s talk about some laws:
- Environmental law:
You should keep yourself updated with environmental law. The changes in environmental law can impact the supply chain. For example, cut a link out of your route or prohibit a specific travel area. If you are not prepared for this, then you should be impacted in so many ways. You have to find out the alternative for it. Changes in some laws can impact the supply chain and eventually business and profit too.
Similarly, the supply chain will be impacted, or your business will be destroyed if you do not have the alternatives for trade regulations. Are you updated with current trade regulation? If not, then you should be well aware of it. You can find the information in government publications. You try to find information online but if it is not available then send e-mail and get detailed information. It will take a few minutes, but you get important insights.
- Export regulations:
It can also impact link in the supply chain that can destroy your business. If you are dealing with tough transportation and supply chain issues, then you need a perfect solution. Supplying on time and consistently can be the best way to avoid the risk. You should ask for a mode of transportation, shipment times and rerouting procedure at the time of natural disasters. Delivering products to a specific location on the right time can be difficult in such difficult circumstances.
Apart from it, environmental and social responsibilities have become an important factor that contributes to the impact of a supply chain. Top supply chain risk factors comprised of the country of origin, shipment and delivery accuracy, physical security, internal processes, social responsibilities, and environmental responsibilities.
This is how trade and regulations can impact supply chain management. You should understand it as it is all about business success. Some other factors that impact the supply chain include information technology, support from government, logistics, quality production system, customer service, marketing approaches, process performance and more.