Unraveling the Future of Global Supply Chains in the Wake of the Pandemic
The global pandemic has left an indelible mark on supply chains worldwide. This article delves into a recent report by Jabil, exploring the strategies and technologies that supply chain leaders are adopting to navigate the post-pandemic landscape.
The global pandemic has undeniably reshaped the landscape of supply chains, prompting a reevaluation of strategies and a renewed focus on resilience and adaptability. A recent report by Jabil, titled “Global Supply Chain Readiness Report: The Pandemic and Beyond,” provides a comprehensive analysis of the current state of global supply chains and the strategies manufacturers are implementing to mitigate future disruptions.
The report reveals that while the idea of localizing supply chains closer to the point of consumption, including reshoring, has gained attention, manufacturers are not quite ready to make such sweeping changes. Instead, many are focusing on supplier relationship management and technology investments. This approach allows manufacturers to remain flexible in an unpredictable economic climate, especially in light of recent events that have further exacerbated supply chain disruptions, such as Russia’s invasion of Ukraine and lockdowns in Shanghai.
The survey findings underscore the importance of building long-term, collaborative relationships with suppliers, manufacturing solution providers, and other service providers who have the technology, global reach, and capacity to meet manufacturers’ needs. For instance, nearly 40% of respondents in the medical equipment industry, which saw a rise in product demand during the pandemic, reported that component shortages had a significantly negative impact on operations. In response, 57% of respondents increased communication with suppliers, and 44% reported more collaboration with hospitals to deliver their products when needed.
The report also highlights the importance of technology in optimizing supply chain resiliency. While 35% of respondents diversified their supply base during the pandemic, 31% plan to diversify their supply chain, and 34% began reevaluating supplier performance during the pandemic. Interestingly, reshoring or nearshoring production was less of a priority in the short term for many respondents. However, looking ahead, more manufacturers are considering transformative moves to protect their supply chain from the next major disruption, including 26% who plan to nearshore or reshore production and 27% who plan to outsource supply chain management and manufacturing.
Takeaways:
- “While the idea of localizing supply chains closer to the point of consumption, including reshoring, has gained attention, manufacturers are not quite ready to make such sweeping changes. Instead, many are focusing on supplier relationship management and technology investments.”
- “The survey findings underscore the importance of building long-term, collaborative relationships with suppliers, manufacturing solution providers, and other service providers who have the technology, global reach, and capacity to meet manufacturers’ needs.”
- “Looking ahead, more manufacturers are considering transformative moves to protect their supply chain from the next major disruption, including 26% who plan to nearshore or reshore production and 27% who plan to outsource supply chain management and manufacturing.”
We’d love to hear your thoughts on the future of global supply chains. How is your organization navigating the post-pandemic landscape? What challenges and opportunities do you foresee? Share your insights and join the conversation in the comments section below.
