We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Report: Seismic changes ahead for global supply chains

Report: Seismic changes ahead for global supply chains

Procurement and supply chain leaders say they will expand supply bases, shrink globalization strategies in the wake of Covid-19.

Change ahead for global supply chains, study shows
June 22, 2020
Supply Chain Quarterly Staff
No Comments

More than 70% of procurement and supply chain professionals say their organizations will make major changes to their supply chain strategy in a post-pandemic world, according to research from supply chain business network Procurious, released earlier this month. Changes include expanding their supply base, reducing globalization, and increasing inventory levels, the researchers said. 

“We expect to see seismic strategy changes in the months ahead that fundamentally alter the makeup of global supply chains,” Tania Seary, founding chairman and CEO of Procurious, said in a statement announcing the results of the survey, which polled more than 600 procurement and supply chain professionals around the world.

Almost all (97%) of those surveyed said their organizations experienced disruption due to Covid-19, citing decreased demand for products and services, lack of available supply due to production downtime and shutdowns, and logistics and transportation slowdowns and delays as the biggest hurdles. Geographic concerns ranked high as well, with nearly 60% of respondents saying that Fortune 500 companies should reduce globalization by localizing supply chains and bringing manufacturing back home.

 “For decades, low-cost country sourcing and offshoring was the foundation of global supply chains,” Seary added. “The pandemic has many executives considering reducing globalization—and for good reason. But these changes won’t come easy.”

The 73% of respondents planning large-scale changes to their supply chains say they will:

  • Expand their supply base (38%)

  • Shrink their global supply chain and rely on local suppliers (34%)

  • Increase inventory levels (21%)

  • Increase financing for key suppliers (9%)

CEOs responding to the survey were more likely to indicate that they will shrink their global supply chains, with 44% saying their companies will take such actions. Making those changes will require “significant investment, commitment, and trial-and-error to get right,” the researchers said.

The survey also revealed uncertainty around when the pandemic-related disruption will peak. More than a third (34%) of business leaders say the worst has come and gone, but nearly half (47%) say the peak impact will occur within the next six months. The remainder said they were unsure of when peak impact would occur.

“The message from frontline practitioners is that the end to these supply chain disruptions is not near,” Seary said. “Most professionals believe the crisis will peak in or after June.”

United Kingdom-based Procurious collected 605 responses to its How Now? Supply Chain Confidence Index survey between April 28 and May 12.

For more coverage of the coronavirus crisis and how it's affecting the supply chain, check out our Covid-19 landing page. 

 

Global Procurement Strategy Covid-19 Coverage
KEYWORDS Procurious
    • Related Articles

      Report: Retailers should focus on supply chain, technology in light of Covid-19

      Industry readies for July 1 USMCA implementation

      Survey: Companies underprepared for climate risk

    Recent Articles by Supply Chain Quarterly Staff

    Cargo theft and fraud rose 41% in the first 20 weeks of 2023 over last year, CargoNet warns

    Gartner: Top supply chains of ’23 balance risk control, new growth channels

    OSHA, industrial safety experts to headline National Forklift Safety Day 2023

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing