can be localized rather than affecting the entire supply chain

This approach is aimed at reducing the impact of regional disruptions and enhancing the overall resilience of the supply chain. Here’s a closer look at why this practice is important and how it can be implemented effectively:

Importance of Geographical Spread in Supply Chain:

Risk Diversification: Relying heavily on a single geographic location for manufacturing, sourcing, or distribution increases vulnerability to region-specific disruptions such as natural disasters, political unrest, or transportation issues.

Disruption Mitigation: By diversifying facilities and suppliers tfl seru mock test across different regions, the impact of disruptions can be localized rather than affecting the entire supply chain. This enables faster recovery and continuity of operations.

Operational Continuity: Geographic spread minimizes the risk of being heavily reliant on a single point of failure. If one location faces challenges, operations can continue through other locations.

Regulatory and Political Factors: Different regions might have varying regulations, taxes, and political environments. Geographical diversification can help manage risks associated with changing regulations or political instability.