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Operations, Supply Chain & Logistics  Article, Latin America's supply chain risk
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Understanding Latin America's supply chain risks

  • Regulatory concerns top the list of supply chain risks confronting executives in Latin America, a survey finds. Elsewhere, labor issues are the main challenge in regard to supply chain risks. Yet few executives in Latin America—or elsewhere—feel confident about the ability of their companies to manage their risks.
  • Executives in Brazil were twice as likely as other executives in Latin America to report that they use detailed models of cash flows at risk to assess supply chain risks; indeed, they are more likely to use this method than are executives in the world as a whole.
  • These findings suggest that successful supply chain management requires considerably more flexibility and creativity in Latin America than in developed markets.

Note: This article includes translations in Portuguese and Spanish.

This article contains the following exhibits:
  • Exhibit 1: Executives in Brazil express more concern over foreign-exchange rates, regulations, and commodity shortages than do executives from other Latin America countries.
  • Exhibit 2: Latin American executives were most likely to cite performance contracts with suppliers as a way to mitigate supply chain risks.
  • Exhibit 3: In analyzing supply chain risks, executives in Brazil were twice as likely as other executives in Latin America to report that their companies use detailed quantitative models of cash flows at risk.

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