Concepts of Logistics Management Essay Research Paper

Concepts of Logistics
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Institution Affiliation
Concepts Of Logistics
Regulatory and Political Barriers
The common supply chain begins at manufacturing of goods, which then go through transportation to local and overseas markets where the consumers can easily find them. In the current business sector, the supply chain is a crucial component of every organization (World Economic Forum, 2018). An effectively managed supply chain translates to massive revenues for any business. Nonetheless, several barriers such as political, regulatory, market access, transport, and communication infrastructure among others may derail the supply of goods.
Doing business in countries with strict trade regulations may halt the supply chain leading to increased risks and costs. Some countries have strict rules governing the hiring of foreign workers, which could result in difficulties in obtaining cheap labor force (World Economic Forum, 2018). Consequently, the production cost may greatly increase and incomes can be drastically affected. In some instances, the risks and costs resulting from the uncertain regulatory environment can be steep. Political instability is another common barrier to an effective chain supply.
Various political issues such as post-election wars, uncertainty and instability in government policies and political upheaval may all impact supply chains of various businesses with varying degree of damage. For instance, in recent times, most of African countries have experienced political and ...