For MSMEs in Nepal, supply chain disruptions are not rare events. Political instability, natural disasters, fuel shortages, and weak infrastructure can significantly affect business operations. Understanding and managing supply chain risk is critical for long-term sustainability and competitiveness.
Common Supply Chain Risks in the Nepali Context
- Natural Disasters: Landslides, floods, and earthquakes routinely affect transportation routes.
- Political and Border Disruptions: Trade blockades or customs delays can halt imports or exports.
- Infrastructure Failures: Poor road conditions and limited storage facilities increase costs and delays.
- Market Fluctuations: Fuel prices and currency fluctuations impact transportation and import costs.
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Risk Mitigation Strategies for MSMEs
- Supplier Diversification: Avoid depending on a single supplier, especially for imports.
- Inventory Buffering: Keep safety stock of critical inputs to absorb temporary shocks.
- Local Sourcing: Identify domestic alternatives where feasible to reduce dependency on imports.
- Scenario Planning: Prepare for disruptions by simulating “what if” events in your planning.
“Risk is part of doing business, but proactive preparation can protect your supply chain and your reputation.”
Developing a simple risk register and reviewing it quarterly can significantly improve your readiness to respond to disruptions. It doesn’t require complex software—just disciplined thinking and documentation.
