Distribution and Supply Chain risks
Challenges in regard to the supply chain risk and distribution when opening a company in the Philippines include regulating the supply and demand of the materials. The company must evaluate to identify proper demand of the materials and have a sound storage unit for the material. When distributing materials from the United States to the Philippines, costs of storage must be considered and the distribution process must be regulated to identify the proper amount of materials that are needed to develop a process of distribution that allows the materials to be used and not wasted. Materials must be distributed in a way will keep the materials safe and useable even after distribution.
Physical and Environmental Challenges
The physical and environmental challenges of operating a business must be considered as well. Because the Philippines have a high rate of pollution and are at a high risk for natural disasters, storage units and materials must be maintained so that materials can be salvaged if a natural disaster should strike. When distributing the pollution factor should be considered and the United States should not ship materials in a way that will lead to higher pollution rates for the Philippines. This can be done by considering the regulations of the Environmental Protection Agency in the United States and considering regulations of the World Health Organization (WHO). Materials and products should be distributed and stored in a way that is environmentally friendly and can be structured to allow materials to be protected from and recovered if a natural disaster should happen.
Social and Cultural risks
Social and cultural considerations should be taken when outsourcing to the Philippines. Language barriers must be broken as the Philippines are mainly Spanish speaking individuals. Religion must be considered and all religious holidays should be observed by the company when operating in the Philippines. There are currently...