Over the last few weeks we are seeing more and more news regarding the risk situation of lack of supplies of goods produced in China, affecting numerous industries as retail, electronics, automotive, chemical… and recognized brands, @Nike, @Puma, @Zara, @Apple, @FCA, and many more that will be communicated in the coming days.
What is presented as a conjunctural situation of lack of supplies is making the Procurement and Supply Chain functions around the world urgently look for alternative sources of supply to solve this situation and once this supply crisis is over in many cases everything will be the same again.
In other cases, organizations will review their risk analysis and mitigation processes in order to not repeat such crisis in the future.
This situation is certainly an opportunity for proximity providers in Europe, USA and in general around the world in order to value certain elements that in Total Cost Analysis (TCO) are not always taken into account in decision-making, such as risk, flexibility, lead time, engineering, sustainability, integration into the customer process…
I will soon share a post on how to seize this opportunity in the medium and long term by suppliers.