Major change is coming in global supply chains | international

Since the pandemic arrived, trading companies have had to do this Strengthening its operations in the market and responding to the increasing demand for products and services, Taking into account the new requirements of customers. This is part of a whirlwind of delays caused by constraints that have affected business financing.

(Read: Heineken will raise beer prices because supplies are high.)

According to the latest study by the logistics company DHL “Radar en Tendencias”, the companies surveyed They plan to make strong changes by 2023 And thus be more flexible in a year that warns of economic difficulties.

In terms of the supply chain, the report highlights The convenience of relying on a single resource provider for businesses.
However, in recent years with geopolitical events, this single link has begun to slow down production and delivery times for millions of customers and that is why next new year companies will start expanding their range and changing their supply chain.

Even multishoring It is allowed to add new local service providers It will be one of the expected trends of 2023, not only to enhance the flexibility of companies, allowing international companies not to depend on a single country for production and marketing, but also to give way to a continuous “foreign” operation of local situations.

(Add to this: Venezuelan crude oil production will not reach 1 million).

In the study, this change will be incorporated by 77% of companies that expect to increase the number of suppliers in the next two years.

“Recent political and trade uncertainty has led many companies across industries to pursue a “China plus one” strategy, in which components and parts are sourced both from within the country and from another country, such as Mexico, India or Thailand. Whether a B2B customer is looking for China Plus One or another multi-location strategy, logistics service providers will need tighter supply chain management with increased visibility.DHL acknowledges.

Added to this dynamic are other changes, since 76% of those surveyed It plans to make significant adjustments to its supplier base over the next 24 months To ensure your supply chain is resilient, this is in response to frustrations with delivery times.

(See: Powell points to the Fed’s enthusiasm for December.)

“By 2022, 70% of US companies surveyed intend to move production closer to the US, while several European textile companies have already started exploring more European and North African countries as potential production locations.“, He says.

Regarding logistics, the company advises, Avoid relying on a single carriermoving towards longer methods, different time lags and different processes to create a security ecosystem that avoids centralization.

“Going forward, experts see a need for companies to become not only at least bi-modal, but also prioritize multimedia, quickly recognizing possibilities and developing the ability to solve problems presented by the unexpected,” he says.

This will allow companies that want to market their products to stay afloat and overcome difficulties in the movement of goods through rounding up or understaffing in road transport or closing in the case of sea transport.

Paula Galliano-Balaguera