How to build resilient and agile supply chains
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of business leaders state that their top investment priority in the supply chain relates to international growth or market diversification.
of businesses cite stricter transparency and reporting requirements as the measure with the most positive effect on value chains.
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“What I see happening now is supply chains increasing the number of sources in each region so they can handle country risk and individual supplier risk much better. If you have just one supplier, in one region, for an important automotive component, production will collapse if they get knocked out.”
- Christian Back, Partner, Head of Automotive, Forvis Mazars Group |
The report highlights how companies can successfully restructure their supply chains to boost their international expansion. We examine proven practical approaches, potential problems, and the areas that, based on experience, require ongoing monitoring by management.
| Cost is being replaced by resilience as the guiding principle of supply chains. International expansion is putting cost-optimised models to the test and placing resilience at the heart of operational decision-making processes. |
| Operational implementation is more important than structuring. The performance of value chains is determined less by reorganisation than by the day-to-day management of procurement, inventory and site structures. |
| Compliance is increasingly becoming an integral part of everyday supply chain management. As companies expand internationally, regulation is evolving from a separate control measure into an inseparable part of routine operational processes. |
| Sustainability regulations are raising the bar when it comes to transparency. Increasingly comprehensive regulations are leading to stricter scrutiny of suppliers and and upstream risk. |
| Technology is crucial for transparency and control across the entire scale. Limited visibility beyond tier one suppliers makes it difficult to effectively implement and scale integrated data and digital solutions. |
“Procurement departments are changing rapidly because they need to assess geopolitical and sustainability risks in the deeper supply chain from a board perspective, it is crucial to give strategic orientation to procurement. They can exert a powerful influence on sustainability performance.”
- Carolin Friedrich, Partnerin, Head of Sustainability, Forvis Mazars Group |
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