diversification of supply network

A recent study reveals that 93% of supply chain managers want to make their supply chain process more agile and flexible than it was before the pandemic. One of the ways companies are planning to make this a reality is by building a more diversified supply chain network.

Prior to the pandemic, many businesses relied heavily on national and international suppliers. When COVID-19 brought about border closures, these international, and even some national, trade sources halted delivery and many of these companies couldn’t obtain the supplies they needed. Businesses were forced to seek out localized and regional suppliers, who were already stretched thin trying to meet demand.

Many businesses found themselves unable to fill shelves, secure the raw materials needed for production or transport goods from point A to point B. These struggles are still impacting businesses today. As of May 2022, 20% of cargo ships were unable to dock due to congested shipping ports.

To avoid these issues in the future, 90% of business leaders plan to focus on building relationships with local and regional suppliers. Before this step can happen, however, your company should consider not only investing in digital supply chain technology, but also increasing visibility within your supply chain network.

Unfortunately, less than 50% of businesses know the location of their tier-one suppliers. This lack of visibility could make it nearly impossible to assess the risk within your supply chain processes, and therefore make the company unable to prepare for future disruptions.

The good news is that the right technology can add the visibility your company needs to mitigate supply chain disruptions. Understanding where your suppliers are located and the risks involved with this partnership can better prepare your company for any future supply chain issues.

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