Reimagining the Supply Chain
During the past 20 years, the supply chain has gone from being regarded as a must-have cost center to a more purpose-led, agile, sustainable function. It has become more intelligent, digital, and resilient.
Previously primarily one dimensional:
What solution provides the lowest delivered cost?
Currently:
What solution is the most risk-resilient and cost-efficient?
- Lessons from the pandemic
- Availability of microprocessors
- Challenges from the Ukrainian conflict
In-country supply chains
- Simpler logistics with elimination of many potential bottlenecks: container shortages, clogged harbors, availability and cost of air freight
- Improved response time
- Decreased working capital and transportation cost
- Elimination of tariffs
- Reduced costs with increased automation eliminating the advantages of less expensive labor markets
- Potentially more reliable and more economical energy
- Consideration of greater vertical integration
Example: Companies designing proprietary microprocessors to meet their specific needs
