In this episode, Claudio Knizek, EY-Parthenon Global Advanced Manufacturing & Mobility Consulting Leader, discusses why businesses are decoupling existing supply chains and repositioning production facilities.
Due to a concurrence of large-scale global events, geopolitical issues and wage inflation in lower-cost countries, industrial companies are restructuring their traditional supply chains. According to the EY Industrial Supply Chain Survey, most firms are strategizing and implementing supply chain transformations, including decoupling their existing supply chains, and repositioning production facilities and suppliers closer to their customers. While reimagining their supply chains, industrial leaders must integrate agility into their supply chain footprint and supplier network. They must also utilize this once-in-a-generation opportunity to make their supply chains more sustainable. The widespread near-shoring of business operations and new regulatory measures, such as the EU’s carbon border tax, suggest that these transformations may alter the established global supply chain models. Consequently, these initiatives will yield clear winners and losers in the market.
Key takeaways:
- Industrial companies have responded to supply chain constraints by remodeling their global supply chains — with 53% of the respondents of the EY Industrial Supply Chain Survey saying that they have already nearshored or re-shored some of their operations in the last 24 months.
- As a result of the US government’s support for domestic manufacturing and sourcing, industrial companies in North America have started bringing production and suppliers closer to home — to reduce complexity and ease delays.
- Firms should conduct a holistic assessment of their global business operations, and implement a supply chain architecture that can handle new risks and opportunities.
For your convenience, full text transcript of this podcast is also available. Read the transcript.
If you would like to listen to our podcasts on the go:
Presenters
Claudio Knizek
EY-Parthenon Global Advanced Manufacturing & Mobility LeaderPodcast
Episode 23
Duration 14m 52s
In this series
Series overviewWhy manufacturers are decoupling supply chains to stay competitive
Episode 23
Presenters
How consumer preference for EVs is evolving since the pandemic
Episode 22
Presenters
How organizations can actively embrace diversity, equity and inclusion
Episode 21
Presenters
How product innovation is proving to be a differentiator in mobility
Episode 20
Presenters
Three priorities for advanced manufacturing in 2022
Episode 19
Presenters
What factors are driving end market recovery for manufacturers
Episode 18
Presenters
How the pandemic triggered a shift toward sustainability
Episode 17
Presenters
How the mobility sector is re-emerging in a post-COVID-19 world
Episode 09