Risks in international trade and supply chains can be managed through careful planning and vetting, say experts.
Companies depending on international trade know that global value and shipping chains can present a number of challenges and risks to the company and its reputation. Working with third-party partners and suppliers can expose a company to a number of potential reputational risks: compliance risks, corruption, bribery, product quality, timely delivery, etc. Managing for these risks is important for a company’s reputation – affecting its reputation and relationship with its customers. But how should a company effectively navigate the risks in the global value and shipping chain? Which precautions should be taken?
Latin Business Chronicle spoke with Edumundo Elías Fernández, Head of the Regional Trade and Commerce Group at law firm Baker & McKenzie’s Gualajara, Mexico offices about how to best handle for these hazards. Elías was a main contributor to a recent report published by Baker & McKenzie advising clients on these issues. The report, “The Companies You Keep: Global Supply Chain Management,” surveyed 100 senior executives at major companies involved in global supply chains, and found their major concerns in dealing with third parties were corruption, general compliance, and quality control.