Supply Chain

President-elect Trump's promise to raise tariffs would hurt apparel and durable goods manufacturers and retailers, in particular, says Bea Chiem, retail director at S&P Global Ratings.

While consumers will undoubtedly feel the pain, the most significant repercussions will be felt upstream by suppliers, who are already operating on thin margins due to rising costs and high interest rates.

Supply chains are the backbone of many industries and businesses. Every part, from raw materials to operational technology, must arrive on time and meet the exact specifications to keep production running smoothly. When supply chain disruption strikes, the impacts are devastating.

A supply chain is only as strong as its weakest supplier. When a supplier fails, an organization's entire production line can suffer. To safeguard operations, organizations need to proactively monitor the financial health of their suppliers, especially private ones, at least twice a year.