Supplier Risk Management: What If It Hits the Fan?!

Posted by Ryan Gudovitz on Mon, Jul, 14 2014 @ 10:57 AM

Risk in the supply chain comes in many forms, but one of the most volatile and unpredictable is geopolitical risk--risk of one country's foreign policy unduly influencing or upsetting domestic political and social stability in another country or region.

In the last few weeks, we have seen the tinder pot start to flare up in the South China Sea, specifically the relations between Vietnam and China. Li & Fung Ltd., the world’s largest provider of clothes and toys to retailers recently released an article exposing the anti-China protests that unleashed in Vietnam which poses a threat on production in many of their suppliers’ factories.

Factories have closed their doors, putting a stop to production in response to an upsurge of violence, riots, heavy damage to factories, and clashes between workers and military forces leaving the industry on edge. Since Vietnam accounts for the second-largest sourcing country behind China for major industry contributors such as Li & Fung, such delays can have a critical affect on production and delivery globally.

Considering more than 95% of all apparel and footwear shipped to the U.S. flows through this region, brands and retailers must understand that if these tensions and small skirmishes continue, they could have major implications in terms of production hold-ups and delivery delays in the retail industry alone.

However, with increased visibility into key information about suppliers, purchase orders, production milestones and shipment targets, supply chain managers can mitigate, intercede or re-mediate in order to maintain the supply stream.

Join us during a 30-minute webinar to learn how ecVision technology can provide sourcing teams with a rapid response tool to identify areas of high concern in you supplier base and the impact disruptions can have – including collaboration tools to proactively take action.

To register for this event, visit:

Supply Chain Visibility

Topics: Supply Chain Visibility

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