If Supply Chains Disrupted, Whole World Suffers: A reflection on S Jaishankar’s Quote ahead of G20 Summit 2023

India is going to be the president with its optimistic slogan "One Earth, One Family, One Future" for the G20 Summit 2023.

The upcoming G20 Summit in 2023 is set to be a pivotal event for India. As the host country, India holds a crucial role in shaping discussions on global economics such as supply chain and financial matters. The G20, comprising 19 individual nations and the European Union, serves as a platform for international cooperation on a wide range of issues. One key topic that has gained significant attention in the run-up to the summit is the importance of supply chains, as emphasized by India's External Affairs Minister, S. Jaishankar.

“If Supply Chains Disrupted, Whole World Suffers” 

The statement by Mr. S. Jaishankar "If Supply Chains Disrupted, Whole World Suffers" is a true statement in its own right! Disruptions in supply chains can have far-reaching consequences for the global community. In simpler terms, it means that when the systems that deliver goods and products to people are disrupted, it can cause problems for people all around the world.

Understanding the Significance of Supply Chains:

Supply chains involve the intricate processes involved in producing, transporting, and distributing various goods and services. These goods are the lifeblood of our daily lives, from essentials like food and clothing to the technology that powers our electronics. When disruptions occur, be it due to natural disasters, transportation challenges, or global crises, it can result in shortages, price increases, and economic instability.

The Global Interconnectedness:

S. Jaishankar's statement underscores the interconnectedness of the world's economies. In a globalized society, supply chains transcend borders and bring together diverse regions. Thus, ensuring stable and reliable supply chains is crucial for the well-being of people worldwide.

Dr. S. Jaishankar further elaborated on the supply chain issue, stating, "The key issue before B20 is the supply chain. Manufacturing is over-concentrated. The pandemic proved that a situation like this can disrupt economies." This statement highlights the vulnerability of an over-concentrated manufacturing sector and the need for diversification to enhance resilience.

What makes the Supply chain so important?

Our world operates within a global economy, driven by a sophisticated web of resources, materials, manufacturing processes, and transportation systems collaborating to deliver goods and services to consumers. This intricate network is commonly referred to as the supply chain.

A well-functioning supply chain is pivotal to any business, offering cost efficiency, enhanced customer satisfaction, and a competitive edge. It manages inventory, mitigates risks, ensures quality control, fosters innovation, and facilitates global operations. In essence, it is the lifeblood that sustains a business, optimizing processes, and enabling it to meet customer demands, adapt to market changes, and thrive in a dynamic business landscape.

One factor that has the potential to disrupt the supply chain is financial constraints.

The lack of finance can disrupt the supply chain in various ways. To explain this without using very technical words, let's break it down:

Supplier Issues: Suppliers are like the starting point of the supply chain. When a business doesn't have enough money to pay its suppliers, they may delay or stop providing essential materials or products. This can lead to production delays or even halt manufacturing altogether.

Inventory Problems: Without adequate financing, a company may struggle to maintain the right level of inventory. This means they might run out of products or have too much, both of which can disrupt the supply chain. Running out of products can result in backorders and lost sales, while having too much can tie up capital unnecessarily.

Transportation and Logistics: Getting products from one place to another requires funds for transportation and logistics. If a company can't afford to transport goods, they might get stuck at warehouses or manufacturing facilities, causing delays in reaching customers.

Quality Control: Maintaining quality standards is crucial in supply chains. If a company can't allocate funds for quality control measures, it may lead to defective products reaching customers, which can damage the company's reputation and lead to returns or recalls.

Risks and Uncertainties: Adequate finance helps a company deal with unexpected events or crises. Without this financial buffer, disruptions such as natural disasters or economic downturns can have a more severe impact on the supply chain.

{{blog-form}}

‍

The importance of supply chain financing, often referred to as supply chain finance, cannot be understated in today's global business landscape. This financial strategy offers several significant benefits for both buyers and suppliers, contributing to the efficient functioning of supply chains.

How Bizongo fosters Supply Chain to Empower SMEs

Bizongo partners with lending platforms to offer tailored supply chain finance solutions to manufacturers in its network. This helps them secure access to affordable working capital to run and grow their operations. 

How Bizongo's Supplier Financing Works

Bizongo provides businesses with working capital needs to help them with early payment options on invoices through its discounting partners. This means producers can get paid within days rather than wait for lengthy payment terms from buyers.

For Businesses fulfilling larger or repeat orders, Bizongo facilitates working capital loans at competitive rates. This supports business with upfront capacity expansion costs and managing uneven cash flows during order fluctuations.

Benefits supply chain financing for SME Manufacturers

Bizongo's supply chain financing delivers several advantages to manufacturers:

• Access to cash faster improves liquidity and ability to fulfill orders promptly.
• Loans help expand manufacturing capacity for growth.
• Discounting invoices evens out income volatility and cash deficits.
• Financing at better rates than traditional loans reduces costs.
• Reliance on Bizongo for financing builds loyalty and stickiness.

We are looking up to the world where "One Earth, One Family, One Future" is not just a slogan but a shared vision, safeguarding the integrity and resilience of our supply chains is paramount. The success of the G20 Summit 2023 and the pursuit of global well-being hinge on the collective efforts to ensure that the disruptions in supply chains remain a rare exception rather than the rule.

To address these financial challenges, supply chain financing, such as that offered by Bizongo, becomes indispensable. By providing access to working capital, offering early payment options, and facilitating loans at competitive rates, businesses can navigate financial hurdles and maintain the smooth flow of goods in the supply chain.