How can supply chain disruptions affect operational costs?

Supply chain disruptions can lead to increased operational costs primarily due to delays that affect the overall workflow and availability of goods and services. When disruptions occur—such as natural disasters, supplier failures, or logistical challenges—there are often delays in receiving materials or delivering products. This can necessitate expedited shipping or alternative sourcing to fulfill orders promptly, which typically come at a higher cost.

Moreover, these disruptions can lead to inefficiencies in production schedules, increased labor costs due to overtime, and potential penalties from unmet delivery commitments. As a result, the cumulative effect of these delays is an inevitable rise in operational costs, making this answer the most accurate reflection of the situation.