can you please explain this clearly?

1. aspects that concern small businesses.

this is from book:

suply chain mangmnt

LO15.8 Describe the three concerns of small businesses related to the supply chain and suggest ways to manage those concerns. 15.6 SMALL BUSINESSES Small businesses do not always give adequate attention to their supply chains. However, there are many benefits to be had for small businesses by actively managing their supply chains, including increased efficiencies, reduced costs, reduced risks, and increased profits. And size can actually be a competitive advantage for small businesses because they often are more agile than larger companies, enabling them to make decisions and changes more quickly when the need arises. Three aspects of supply chain management that are often of concern to small busi- nesses are: Inventory management Reducing risks International trade Inventories can be an issue for small businesses. They may carry extra inventory as a way to avoid shortages due to supply chain interruptions. However, that can tie up capital and take up space. An alternative is to have backup suppliers for critical items. Similarly, having back- ups for delivery from suppliers and deliveries to customers can help overcome disruptions. Because it can take a fair amount of time to set up accounts, it is prudent to have these systems in place before they are needed to maintain operations. Another area that often needs attention is risk management. The key to reducing risks is managing suppliers. Important steps are: Use only reliable suppliers Determine which suppliers are critical: get to know them, and any challenges they have Measure supplier performance (c.g., quality, reliability, flexibility) Recognize warning signs of supplier issues (e.g.. late deliveries, incomplete orders, quality problems) Have plans in place to manage supply chain problems Exporting can offer opportunities for small business producers to greatly expand their businesses, although they typically lack the knowledge to do so, which can cause unforeseen problems. For instance, exporting nonconforming goods or packaging can result in shipments being held up at a port of entry, which can be costly and time-consuming, and can lead to dis- satisfied customers. Importing can have benefits for small businesses. The Small Business Administration has some tips for using foreign suppliers: Work with someone who has expertise to help oversee foreign suppliers, preferably someone who spends a good deal of time in that country. Also, a licensed customs bro- ker can help with laws and regulations, necessary documents, and working with import- ers and exporters. Describe your buying patterns and schedules to set expectations for demand and timing. . Don't rely on a single supplier, a backup supplier can reduce risk and provide bargain- ing leverage. Building goodwill can have benefits in negotiations and resolving problems when they arise. . Consider using domestic suppliers if the risks or other issues with foreign suppliers are formidable. Advantages can involve lower shipping times and costs, closer interactions with suppliers, and increased agility