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What are the biggest supply chain risks by switching from local suppliers to low cost (but distant) suppliers?

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Question added by Nikolaj Bekarslanov , SUPPLY CHAIN MANAGER , Rieker Schuh AG
Date Posted: 2016/04/02
Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Reduce complexity is to regionalise supply chains so that the impact of losing supply from a plant is contained within the region. Since rising fuel prices increase transportation costs, regionalising supply chains provides an opportunity to lower distribution costs while also reducing risks in global supply chains.

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

Agree withthe explanation provided by Rahman Sheikh

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