Search By Topic The Green Supply Chain Distribution Digest
Supply Chain Digest Logo

Supply Chain News: New Report from Capgemini Predicts Majority of Supplier bases to be Local in Three Years


25% of Current Global Trade will Flip to Local, Report Predicts

Jan. 10, 2023
SCDigest Editorial Staff

In a new report, the consultants at Capgemini predict that for most companies local suppliers will be the majority in just three years.

Supply Chain Digest Says...

45% said their supply chain cost basis had increased over the past three years in order to gain higher resilience, sustainability, and customer-centricity.

What do you say?

Click here to send us your comments
Click here to see reader feedback

The report says that the current split between global and local (in country) suppliers is 57% to 43% respectively.

But Capgemini that 25% of global trade will be relocate in the next three years, resulting in an also exact reversal of current sourcing, with local supply making up 57% of the total and 43% global. (See graphic below).

The report says that “Organizations are pivoting their supply chains towards more local and regional suppliers and manufacturers.”

Houssam Hage, SVP of supply chain of automotive company Stellantis and contributor to the report, said: “Stratetic sourcing may be considered as local, to ensure there is no dependence on any war-constrained countries or vulnerability to supply chain disruptions, such as the recent blockage of the Suez Canal.”

The research involved a survey of 1,000 supply chain executives at large enterprises in consumer products, retail, manufacturing and life sciences across 13 countries.

It also found that 92% of companies said the on-going relocation of the global supply chain have had a major impact, but only 15% were equipped to deal with it.

And 45% said their supply chain cost basis had increased over the past three years in order to gain higher resilience, sustainability, and customer-centricity.

The report says what is calls “supply chain masters” comprise 9.5% of respondents and are characterized by their ability to successfully balance multiple demands on their supply chains. That capability on average saw the masters achieve 15% higher revenue growth compared to the other companies.

Mayank Sharma, global supply chain lead at Capgemini, said in press release relative to the new report that “The last few years have highlighted the need for organizations to build agile and resilient supply chains, not only to cope with disruptions but also to help them stay ahead of the curve, especially from a sustainability perspective.”

(See More Below)




Sharma added that “It is clear that there’s no one-size fits all solution, but organizations that lay the foundation for a data-driven, technology-enabled, scalable, and sustainable supply chain are the ones that will reap the most impressive returns in terms of driving improved customer loyalty, creating more business value and meeting sustainability goals.”

The full report, which is actually around the broader topic of supply chain excellence, can be found here: How greater intelligence could supercharge supply chains.

Any reaction to this sourcing prediction
? Let us know your thoughts at the Feedback section below.


Your Comments/Feedback




Follow Us

Supply Chain Digest news is available via RSS
RSS facebook twitter youtube
bloglines my yahoo
news gator


Subscribe to our insightful weekly newsletter. Get immediate access to premium contents. Its's easy and free
Enter your email below to subscribe:
Join the thousands of supply chain, logistics, technology and marketing professionals who rely on Supply Chain Digest for the best in insight, news, tools, opinion, education and solution.
Home | Subscribe | Advertise | Contact Us | Sitemap | Privacy Policy
© Supply Chain Digest 2006-2023 - All rights reserved