Clean water is vital in many production and manufacturing processes. It can be used for creating the product, cooling equipment, extraction activities, and cleaning and utilized in multiple industries. Supply chains have to be designed with the consideration that the necessary facilities have access to fresh water supplies on a consistent basis while also considering the environmental impact of the water footprint.
In the context of global supply chains, each country has specific and differing laws regarding a range of supply chain activities, including labor, storage, transportation, customs, finances, and materials imported/exported. Supply chain designs should strive to maintain networks with consistent regulatory standards across all points with the best optimal regulations for the type of industry and products being transported.
Compliance risks can vary significantly and include elements such as corruption, fraud, export sanctions, environmental, social, and governance requirements, as well as compliance with policies such as labor or health and safety laws. Every supply chain risks violating regulatory regulations periodically. The best approach is to design a targeted and tailored approach via a risk assessment to protect the supply chains and make them more resilient by ensuring compliance.
Closer relationships between buyers and suppliers can create value and allow supply chains to be resilient. Supply chain networks should consider the buyers’ needs (location, reputation, and quality of supplier) and build long-term relationships, as this can help to maximize efficiency via functions such as advanced procurement and value through bulk orders or discounts.
Certain industries or productions may require access to specific commodities which are not readily available, including human resource expertise, labor, or specialized materials. Supply chain networks have to be built around this complexity to transport the needed resources to the specified location within the appropriate timetables.
The supply chain must adhere to larger trade agreements, such as ones between countries, ensuring that certain value ratios are maintained. It is likely that regulatory bodies in the respective countries monitor these indicators, so when designing networks, this information should be considered for large-scale supply chains.