Delaware Business Insurance Update, Supply Chain Risks Increasing

I stopped by one of my clients the other day to talk about his risks. In the conversation he tells me about a product line they have been selling that has gone wild. He said that the new product has accounted for 50 percent of their sales this year. When I inquired some more I found out that they buy the product from a Japenese manufacturer. Now this started my risk radar. I also discovered that there is no other manufacturer of this product in the world. So what happens if the manufacturer goes belly up? What happens if there is a Japanese earthquake. What happens if the supply is stopped? This is supply chain risk and it has become more prevalent today than ever before. Every business today has some supply chain risks that could dramatically affect their business. Business owners should talk to their risk professionals on how to mitigate this risk.  It certainly shows how changes in the world markets affect even small businesses in small towns. Until next time be careful out there and know your risks. K

G. Kevin Nemith , Small Business insurance , Enterprise Risk Management specialist serving DE, MD, NJ, PA, and VA.

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