Sunday , May 22 2022

Greece crisis hits supply chains 

The Greek financial crisis threatens both regional and international supply chains.

Supply chains have been affected by the ongoing financial crisis in Greece.

According to a Wall Street Journal Report, the Greek government’s decision to shut down the country’s banking system for seven days will have a negative knock-on impact on imports and exports. In turn, this could destabilise both regional and global supply chains in the coming weeks and months.

Greg Johnsen, chief marketing officer at supply chain technology firm GT Nexus, told the news provider: “Right now you can bet that there are lots of European companies that are reassessing: what does it mean to be doing business with Greek companies?”

Michael Bourlakis, a professor of logistics and supply chain management at Cranfield University School of Management said the nation’s problems may see businesses turn to nearby countries such as Turkey for the products they would normally have sourced in Greece.

He also warned that the country’s position as a regional transport centre could come under threat.

Mr Johnsen said any changes that do occur will not happen overnight and will take some time to come into force.

“I think it’s unlikely that you’d see an immediate shift within weeks, but I’d say you could begin to see some of these changes within months,” he stated.

Should the Greek people vote yes in the upcoming referendum on whether to accept EU and International Monetary Fund bailout terms, Mr Bourlakis believes supply chain activity would quickly return to normal. However, a no vote would likely lead to even greater disruption.

Source: Greece crisis hits supply chains | Industry News

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