Just in time’ being replaced by ‘just in case’ as volatility becomes the norm and companies increase suppliers close to home
A major report by Make UK and Infor, ‘Operating without Borders – Building Global Resilient Supply Chains’, shows the stark impact on UK manufacturers from the economic shocks of the last two years and the knock-on effects to supply chains from increased energy, transport and raw material costs, as well as transport availability.
The findings indicate that the strategies manufacturers adopted of off-shoring in response to globalisation, operating a ‘just in time’ process with virtually guaranteed transport links and low-cost production, have been turned upside down with disruption and increased volatility fast becoming normal.
'We may now be seeing the era of globalisation passing its peak, with disruption and volatility for global trade fast becoming normal. For many companies this will mean leaving ‘just in time’ behind and embracing ‘just in case’ Verity Davidge Director of Policy, Make UK
'The rules of supply chain are being re-drawn. Resilience trumps efficiency with winners being those who have been able to rapidly adjust their supply chain strategies to accommodate the succession of shocks.
Digital technologies play a part in building resilient supply chains and this survey by Make UK provides much needed insights from manufacturers on their response to this new norm and their use of digital to navigate the storm' Andrew Kinder SVP International Strategy & Sales Support, Infor
See the report below