Supply chain risk 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.
Violence, riots, heavy damage to factories, and clashes between workers and military forces have supply chain executives on edge. Considering more than 95% of all apparel and footwear shipped to the U.S. flows through this region, continued tensions and small skirmishes could have major implications for the footwear industry in terms of production hold-ups and shipping delays.
However, with increased visibility into key information about suppliers, purchase orders, production milestones and shipment targets, supply chain managers can mitigate, intercede or remediate in order to maintain the supply stream.
The United States Fashion Industry Association (USFIA) provided an overview of these risks and what you can do about them. USFIA Washington Counsel David Spooner of Barnes & Thornburg LLP provided an overview from the Washington perspective, including risks and reactions. Then, Gary Barraco, Vice President of Industry Development for ecVision, discussed how 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. Sylvia Reyes, Textiles & Apparel Director for USA for Proexport Colombia concluded with a discussion of how near-shoring can be a viable solution, too.
PowerPoint Presentation: http://www.usfashionindustry.com/presentations/071614-USFIA-Webinar-Supplier-Risk-Management.wmv