Which factor can lead to supply chain disruptions?

Natural disasters and political instability are significant factors that can lead to supply chain disruptions. These events are often unpredictable and can cause immediate and severe impacts on the flow of goods and services. For instance, a natural disaster such as an earthquake or hurricane can damage infrastructure, halt production, and disrupt transportation routes, making it difficult to source materials or distribute products. Similarly, political instability, such as war or changes in government, can affect trade routes, alter regulatory environments, and impact the availability of resources needed for manufacturing and distribution.

In contrast, predictable customer demand tends to allow businesses to plan and optimize their operations, reducing the likelihood of disruption. Stable supplier relationships foster reliability and consistency in the provision of goods, while technological advancements in logistics typically enhance efficiency and improve supply chain resilience. Therefore, the challenges posed by natural disasters and political factors stand out as primary contributors to supply chain risks and uncertainties.