Restructuring global supply chains

Supply chain leaders are restructuring global supply chains to make them more resilient. When it comes to physically changing supply chains, two strategies dominate – increasing inventory buffers and dual-sourcing. 

In McKinsey’s 2023 Supply Chain Pulse Survey, 78% of respondents adopted each of these strategies. This was a similar amount to the previous year, meaning these actions are still the most popular strategies. ¹

Strategies for restructuring supply chains

In stock? The unknown trends in inventory management

In response to the pandemic disruption, many businesses built up their inventories. This led some to believe that just-in-time supply chains were over with, and others to think that just-in-case would be reversed post-pandemic. Four years later, inventories remain high, but supply chain leaders are still divided on whether to reduce or maintain this.

Making moves: diversification vs localisation

Source: Accenture

Localised solutions for your business

There’s a growing preference for producing goods within the same region they’re being sold in. Currently, this preference is 43%, but in three years, it’s expected that 85% of global leaders will prefer localised value chains.¹ This is being achieved by proximity-based hubs – spaces that bring together production facilities and sales in the same region. Proximity-based hubs improve inventory management and supply chain efficiency and accelerate response to local market demand.¹

Diversifying and localising strategies aren’t new. According to Accenture’s global survey,

• 42% of supply chain leaders are using multi-sourcing strategies
• 72% plan to in future. ¹

• 38% of supply chain leaders are mostly sourcing regionally
• 65% will do so in three years.¹

Supply chain leaders are also digitalising and automating their supply chains to make them more resilient, efficient and productive.

Learn more here

¹  Accenture

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