Rising Geopolitical Risk Poses a Significant Challenge to Global Trade

In a recent Procurement Roundtable discussion with major global retailers and brands, moderated by Air8, senior procurement executives emphasized that geopolitical risk remains the top challenge to global trade, surpassing all other obstacles faced by professionals in the field.

 

 

The Red Sea incident and the continual impact of Russia-Ukraine war have resulted in significant disruption to the shipping industry and global trade, causing logistical obstacles that leads to delays and increased costs. It is imperative for industry stakeholders to take a more proactive approach by forming strategic partnerships and creating agile supply chain practices to ensure resilience.    

 

According to EY, despite the increasing growth of geopolitical risks, corporate focus on such risks is diminishing. This should be a cause for concern, given the extensive effects that geopolitical disturbances can have on businesses. If your company is not currently paying attention to the geopolitical landscape, it is advisable to start doing so without delay.

 

Supply chain finance platform, such as Air8, plays a crucial role in overcoming this type of challenge. For instance, accounts receivable purchase (ARP) facilitates early access of working capital to optimize cash flow and mitigate risk of uncertainty of prolonged shipment schedules. 

Air8 provides not only efficient financing solutions for addressing supply chain disruptions, but also industry-specific insight to identify opportunities for global buyers and suppliers.  

Stay connected with Air8 for updates and insights relating to the supply chain ecosystem in the weeks ahead!

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