Regional conflicts, supply chain disruptions, and lower
productivity have all presented consistent challenges in recent
years. The cost of these events in an environment with high
interest rates and inflation, where some companies have seen their
cash reserves dwindle, has the potential to derail strategic
objectives.

As companies are jumping from crisis to crisis, how to balance
light distribution and manufacturing footprints versus greater
redundancy and backups is top of mind for management. What are the
long-term impacts of any potential event? What is the economic
impact of missed sales, lost customers, and unplanned penalties to
manufacture and deliver products?

We have seen these scenarios play out across many industries,
but the consumer products space has been particularly impacted.
This is true whether a company is small or large, public or
private, private equity owned or founder owned. As a business owner
and operator, how many times can force
majeure be used as a reason why your business is
struggling? 

Make sure you aren’t “putting all your eggs in one
basket” operationally and take the following actions:

1. Add manufacturing and distribution footprint risks to your
   planning and long term strategy meetings.




2. Talk to your suppliers, contract manufacturers, and
   distributers about what their back-ups are and source potential
   external options if internally managed.




3. Ensure business cases on gaining market share or achieving cost
   savings include operational risks and how they are mitigated.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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