The Olympic Games in Beijing are currently causing distress to supply chain management staff in the US and Europe, it has been reported.
In an attempt to lower the amount of smog in the Chinese capital, officials have ordered the closure of many of the city's surrounding factories which, although is having a minimal impact on the air quality, is having a significant impact on the availability of goods in the West.
"The [factory] closings may mean the well-connected companies aren't even going to notice a change," said Bryan Larkin, a director of strategy for retail and consumer product goods.
"But those that aren't so well connected may be quickly trying to find alternative sources of components or finished goods to ship to the United States," he added.
It is examples such as these that offer reasons to outsource management of a supply chain, as a dedicated organisation will be able to predict such problems before they arise, and find alternate solutions.
Outsourcing a supply chain also means that employees within the company have more time to dedicate to other matters, making the business more efficient.
Manufacturing and Industrial:
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