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Crisis in Bangladesh: Overcoming Supply Chain Challenges for Importers and Exporters
If your business is involved in international trade, the ongoing crisis in Bangladesh should be a cause for concern. Supply chain management and logistics may face potential disruptions due to political instability and economic uncertainty. So, if you’re an importer or an exporter with close ties to Bangladesh, it is essential that you adopt proactive measures to mitigate the risks associated with the current situation. Here’s what ABK thinks you should do as an importer and expect as an exporter.
For Importers: Diversify Your Supplier Base
If your business is heavily reliant on supplier relations in Bangladesh, it’s time to think about diversifying your supply chain to different countries in the region. Look for countries with a more stable environment, like Cambodia, Vietnam and India to be part of your supply chain. With the current scenario in Bangladesh, a good supply chain management suggestion is to reduce dependency on the country by diversifying your supply to save your business from potential disruptions.
For Exporters: Be Prepared for Payment Delays
The current crisis in Bangladesh could lead to financial stability, where the banking system may slow down and steps may also be taken to conserve foreign exchange. This may lead to potential delays in payments for exporters to the country. It is advisable to have a contingency plan in place, and this includes renegotiating payment terms, exploring alternate markets and securing insurance coverage for potential losses.
The Takeaway: Strengthen Your Supply Chain
This is a crucial time from a supply chain management and logistics point of view, to focus on building a flexible supply chain for your business. Diversifying your supply chain will keep you prepared for potential disruptions like the Bangladesh crisis. While we all look forward to a positive resolution in Bangladesh, it is also prudent to take proactive steps to protect our business interests.