Local Sourcing Has Big Benefits for Business
Lisa Anderson was quoted in an article on the American Express website discussing why local sourcing can help benefit your business in a big way!
Lisa Anderson was quoted in an article on the American Express website discussing why local sourcing can help benefit your business in a big way!
Companies went global for the past few decades with a gusto to save labor costs. The pandemic jolted many Executives eyes open to the risks in the global supply chain. Suddenly, companies were reevaluating their global footprint with an eye to cost, risk (supply chain, geopolitical, etc.), customer performance, etc.
Israel was attacked by Hamas, and the world has another war in another region of the world. Since the global supply chain is interconnected, in addition to the devastation in the region, supply chain impacts will emerge.
Global supply chains are on the move. Executives have been hit with the harsh reality that the risk (supply chain, geopolitical, cyber, IP, etc.) is far higher than they realized when they outsourced with an eye to cost.
Manufacturing appears to be turning the corner. According to the ISM, the Purchasing Managers Index (PMI) recorded a contraction but at the slowest pace of the recent cycle. In fact, this is the third straight month of improvement.
The Panama Canal has a 40% market share for containers moving goods from Northeast Asia to the U.S. East Coast, and drought conditions are creating a new round of supply chain disruptions. There have been between 130 - 160 ships waiting, leading to supply chain delays.
Globalization is not working. Geopolitics abound. For example, the war in Russia and Ukraine ravages on. There are concerns around the nuclear power plant in Ukraine, occupied by Russia. And that is aside from the impact on oil, food, commodities and much more. China continues to threaten Taiwan and has already changed Hong Kong. It is no longer the same for business. There are countless risks throughout the world.
There are mountains of geopolitical threats going on with significant impact on the supply chain. Most, if not all of these also relate to natural resources.
The world of supply chain and logistics has been plagued with volatility, disruptions, and increased regulations. Several issues are converging simultaneously, creating a precarious path forward. In this webinar, we will talk about the current status of the supply chain and what the successful and unsuccessful paths forward will look like.
In this episode of Supply Chain Chats, Lisa Anderson talks about the state of business, the economy, and supply chain, what it means and how to take advantage of the opportunities that will come down the pike.She talks in detail about inflation, recession, the impacts of interest rates and the labor force and what the successful companies are doing differently to succeed.