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12 June 2014 | Anna Scott
World Cup suppliers must have contingency plans for their supply chains in case they are affected by disruption from loss of worker productivity, corruption or rioting, a consultancy has warned.
As the month-long football tournament kicks off in Brazil today, Rob Baker, principal consultant at Crimson & Co, says companies supplying services such as food, beverages and merchandise to Brazil must carry out comprehensive “root-to-branch reviews” across their entire supply chains in order to protect their margins and reputation.
“Organisations that are particularly going to feel the strain from this are those without a pre-existing presence in Brazil,” he said. “Even with something as significant as the World Cup, it would be naïve to assume the route to market for overseas suppliers is straightforward. It’s imperative for firms to analyse each individual element of their supply chain, as the potential for disruption from so many external factors is huge.”
Baker pointed to the ongoing criticism of the South American country’s building programme for the tournament. “The fallout from this must now be on the flow of supplies to Brazil – whether it is merchandise, food or beverage, firms providing products and services must look at the lessons which can be learnt from the host nation,” he added.