As Bitcoin’s dramatic increase to over $50,000 a coin sparked a massive explosion in digital currencies and pervasive curiosity in blockchain-based technology, cryptocurrency exploded into the mainstream. Bitcoin’s price has remained been increasing and interest in cryptocurrencies has remained high, creating small business risks.
Is bitcoin, on the other hand, appropriate for small businesses? Before declaring that you would support bitcoin, there are some severe concerns to remember – both technological and realistic.
Recently we took our Granddaughter to see a Cirque du Soleil show. While we had seen several Cirque shows before it was her first time. The show made an indelible impression on her. She talked about it for weeks and will remember it for the rest of her life. We were proud that we gave her such a lifelong memory.
In thinking about the show and its construct I thought about the incredible amount of risk that the performers and producers are managing. These world class performers have astonishing talent but they are also working in an environment designed to eliminate risk and maximize safety.
Supply Chain Professionals, although not usually theatrical, also work in an environment in which they are managing a tremendous amount of risk. While most jobs are not life threatening the level of risk is still prevalent.
What are the risks that Supply Chain people deal with every day and what is Supply Chain Risk Management?
The Coronavirus pandemic has disrupted every aspect of our lives and the global economy. From shortages of toilet paper to personal protective equipment (PPE) to lockdowns of businesses and channels of every form, Supply Chain has been at the epicentre of this disruption and it has consumed all Supply Chain time.
The pandemic has caused Supply Chain professionals to scramble to restore supply lines, respond to highly volatile demand patterns, find alternate logistics channels, and work under the restrictions of home quarantine.
But the time will come when day to day Supply Chain issue firefighting will ease. Then will come the time to translate these experiences into new strategies, improved processes and greater investments in technology and personnel development.
Where should Supply Chain professionals be spending their time when we get past the pandemic?
An effective supply chain is the ironic link that every business requires to join together a well-developed product and the market. Everyone knows that, though not everyone takes the time to properly assess the difficulties of their respective markets.
When examining the risks of entering a new market, there are things to look out for that hint towards difficulty. It’s therefore imperative for businesses to ensure they have properly planned how to get into a new market successfully.
Only after that can a good plan be put into action.
In today’s world, supply chains are more important than ever. They’re a key part of any business’s operations, but they can also be one of the most vulnerable areas.
From a business perspective, it’s no longer enough to simply produce and distribute your products. You also have to make sure they get to their intended destination on time, in good condition, and ready to be sold.
That means managing employees, vendors, customers, and more on one platform. And if you’re not doing that well enough, you’ll lose money fast. In fact, 89% of businesses encountered a supplier risk event in the last five years. But not all companies are prepared for this level of risk and complexity. That’s where supply chain risk management software comes in.
Having a productive and efficient supply chain is very important for a business. In supply chain management, it is essential to keep all unnecessary costly errors mitigated. However, common mistakes can happen that lead to higher overhead.
Missing opportunities that make your chain more efficient will make your supply chain sub-optimal. By locating the mistakes and correcting them, you can optimize your supply chain.
Natural disasters are never far away. Fortunately, this guide will help to protect your business from them, no matter your location.
Many small and medium-sized businesses are experiencing financial hardships during these economic times. Of course, this means that any natural disaster could potentially send them under if it was to strike.
In March of 2021 the world was astonished when a large cargo ship, the Ever Given, became stuck in the Suez Canal. Virtually everyone is oblivious to the movement of any single cargo ship around the world. However very quickly the colossal ramifications, including to investors, of this singular event became known to all.
The blockage of the Suez Canal by this one ship immediately impacted global Supply Chains. Over $9 billion per day (12% of global trade) moves through the 120 mile canal.
While the ship was freed after about a week, in the intervening time ships were debating whether to take the longer trip around the Cape of Good Hope in Africa or wait for the salvage operation. It all underscored the vulnerability of having a single point of failure in any Supply Chain.
When it comes right down to it, insurance really is all about risk management. At any moment, some unexpected event can lead to loss of some kind and in varying degrees. Sometimes that loss is related to property and other times it relates to human life.
Other times it relates to intangible assets like intellectual property and those assets that fall in between that which is tangible and that which is not, such as in cryptocurrency. Crypto does exist in the blockchain, but only as ledger entries within a wide network of global computers, and if you are the cause of someone losing what amounts to a small fortune in crypto, you could be held liable.
Very early on in my career an associate of mine was fired because he was found to be taking kickbacks from packaging suppliers to whom he had been preferentially and inappropriately been giving business.
Most recently I have received lots of emails and messages from unknown people offering to sell me masks and other personal protective equipment (PPE) for really low prices. A cursory investigation into some of these finds that the items are substandard at best, and the commensurate price gouging during the pandemic reeks of fraudulent behaviour.
One of our most popular articles is Freight Forwarding scams. Every couple of weeks I will get an email from someone, from anywhere in the world, who has been the victim of a freight forwarding scam, and is looking for help.
All of this, and more, has caused to me consider that this is a very important, very real, and very prevalent issue. So let’s discuss Supply Chain scams and fraud.