Opinion: Successful sourcing from low-cost countries

from ft.com

Supply chain failures have a price tag that goes far beyond the direct cost of business disruption. The reputational damage caused by delayed delivery, unfulfilled orders or product withdrawals often affects future revenue streams and profitability as customers and trading partners take their business elsewhere.

Investors too have shown themselves to be intolerant of such shortcomings, and suffering firms can find themselves punished through a sustained drop in their share price. The threat to long-term value is particularly pronounced for companies that source extensively from low-cost countries.

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