Long supply chains are more vulnerable to disruptions, which are already costing the average company the equivalent of 42 percent of one year’s profits every decade. Add in the effect of new tariffs, and transport costs that have more than tripled on some major ocean routes, and the cost advantage of global production shrinks still further.Ĭompanies are becoming more concerned about the disadvantages of globalized networks too. Over the past decade, automation and the rising cost of energy and raw materials mean that factor-cost advantages are becoming less significant than they were. They also want their supply chains to support their efforts to achieve environmental and social sustainability. Organizations now need networks with the resilience to tolerate shocks and the agility to respond to demanding customers and fast-changing markets. Delivering products at the right time, the right quality, and the best cost is no longer enough. Economic, technological, and political shifts have undermined the traditional advantages of globalized supply chains, just as the definition of supply chain value is evolving. It does not store any personal data.The foundations of early 21st century manufacturing network strategy are starting to look shaky. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly.
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