Blog: Major Supply Chain transformation ahead?
Earlier this month, Procurious (a global business network for supply chain management professionals) published their first Supply Chain Confidence Index. The study reveals that nearly all (97%) of the 600+ SCM professionals surveyed experienced a supply chain disruption related to COVID-19. The main impact areas reported were: decreased customer demand (31%), lack of available supply due to shutdowns (26%) and logistics and transportation slowdowns and delays (21%). In response, the majority of the organizations are now planning major shifts in supply chain and procurement strategy post-pandemic, including supply base expansion (38%), reductions in supply chain globalization (34%) and increases to inventory levels (21%).
Reflecting on lessons learned, 39% of those surveyed said they were blinded by a lack of supplier and geographic risk and 29% said they didn’t understand the upstream supply chains of their suppliers. A great opportunity for SCM professionals to step up and take the stage! Says Tania Seary, CEO of Procurious: 'For decades, low-cost country sourcing and offshoring was the foundation of global supply chains. The COVID19 pandemic has many executives considering shrinking their global supply chains —and for good reason. However, making those changes will not be easy and will require significant investments, smart strategizing, and a lot of trial-and-error to get it right. Apart from a lot of data and information, smart people are key for making it happen. Career opportunities for our SCM students never looked brighter.
When you consider rethinking your global supply chains or you are curious to learn how this will impact your company, please do not hesitate to contact BISCI. We are more than happy to support you with our (academic) knowledge and practical experience.