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

From globalised	to localised
Free movement of goods across a large global footprint.	Suppliers and factories are localised and decentralised. They’re tailored to the markets they operate in or serve. Reducing a supply chain’s geographical spread can help create a more low-carbon supply chain and transportation flow² More flexibility can rebalance production operations across sites.

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.¹This 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.

¹ Accenture

Restructuring global supply chains

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