How to Localize Your Supply Chain and Why You Should
Crises can reveal weaknesses. For instance, the coronavirus crisis exposed the lack of visibility many businesses have into offshore suppliers and demonstrated the fragility of their supply chains. This has led many organizations to consider moving pieces of their supply chain to local regions.
In a May survey by the Institute for Supply Management, 97% of respondents said the coronavirus impacted their supply chain and 36% dealt with disruptions. Yet, as of March, 44% of respondents had no plan to overcome these disruptions. In other words, these companies could not maintain production at normal levels if, for example, they relied on a single supplier in China’s Hubei province, where the virus first surfaced.
The resulting lost revenue sparked a reckoning to improve supply chain resilience—55% of supply chain leaders told Gartner they expect to have a highly resilient supply chain within two to three years, up from 21%.
But building resilience requires establishing relationships with multiple suppliers and manufacturers. It also requires complete visibility into the source of each component that goes into your goods, and the path those components take to your facility. That’s where traceability comes in: a company must be able to track a product as it evolves from raw material to manufactured good to shipped product to store merchandise to sold good. There has to be a better way.
This paper will cover the benefits of localizing a supply chain—in this case, to North America—major costs to consider, potential barriers to relocation, and the steps a business should take if it decides to onshore.
Considering moving your supply chain to local? Learn how to localize your supply chain and why you should:
Source: from the experts at NetSuite
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