IN THE JOURNAL | GLOBAL PERSPECTIVES
The hidden costs of broken supply chains
With tariffs so low, what's holding up cross-border trade?
October-December 2013
By: Jean-Pierre Fellenbok , Mark Gottfredson

Business environment

• What are the political and administrative realities in your chosen market, and how will that affect the ease and security of doing business there?

• Do businesses enjoy the support and encouragement of government officials, or is there a history of random taxation, excessive fees or other attempts to extract value from the private sector?

• Are the rules and regulations that pertain to your business clear and consistent? Are there established procedures for working through them?

All of these costs can be estimated to gauge the effect on potential investment returns. But if your team can’t provide definitive answers to questions like these, moving forward can have real repercussions. In Brazil, for instance, an attempt to build an electronic freight invoicing system should have helped speed shipments. Instead, subpar government information and communications technology systems couldn’t handle the volume and often crashed, causing longer delays than the old system.

COMMENTS
Emelia Ingram 10/24/2017 11:45 AM
Supply chain is an important part when it comes to economic and in the whole industry. Businesses needs to invest to their operations so that they can be more competitive but they need to monitor the supply chain of course. If they don't monitor their supply chain costings it will be a big risk for them and they will have more expense rather than having an affordable and high quality suppy chain. Learn more about supply chain costings here: BR International Supply Chain Services.
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