June 2023 (2/2)

In the past, we thrived on the simplicity of outsourcing production and the allure of foreign labour for assembly and just-in-time delivery. Fast-forward to today, we find ourselves in a maelstrom of global supply chain disruptions. From consumer demand shifts and off-shoring woes to transport bottlenecks and geopolitical entanglements, we’re facing the stark limitations of our previous model head-on.  What trends are shaping these limitations? And what learnings have we collected among our trusted clients that you can implement in your supply chain?

Global uncertainty

In an era of increasing geopolitical scepticism, reliance on a single region or supplier is a risk we can’t afford. Diversification is key. Proactively identifying alternative sources and building strong relationships with a wider pool of suppliers, can shield us from disruptions and ensure business continuity.

Material access

The current turmoil in material access underlines the importance of robust supplier relationships and contingency planning. With geopolitical scepticism on the rise, how long can we afford to depend on a single region or supplier? From critical minerals to basic commodities, proactive scenario planning and alternative sources can help us navigate material shortages. 

Manufacturing footprint

Our manufacturing footprints are changing, driven by the push for greater supply chain resilience. Nearshoring and regionalisation are growing trends, reducing lead times and changing our footprint. Reevaluating our manufacturing strategies in light of these trends is essential. 

Retail and Distribution

The evolving retail and distribution landscapes reflect changing consumer behaviours and expectations. As consumers demand speed, flexibility, and personalization, our supply chains must respond in kind. But are our supply chains equipped to these demands?  We contend that a customer-centric supply chain, combined with an agile, data-driven approach, is the new norm. These trends are not just predictions, they’re imminent changes we must prepare for. Solving this complex puzzle will demand concerted efforts across numerous areas. From refining production processes, to enhancing logistics efficiency, to optimising distribution networks – each factor requires our attention and improvement for us to truly make a difference.

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