In general, creating a dynamic, evolving supply system will probably mean faster course correction for efficiency. Given these desires, it's not hard to see a greater demand for low-cost country sourcing/nearshoring when businesses want to massively upend their approach to production.
Manufacturing Global outlined a few of the key factors driving the need for "dynamism" as organizations come to understand what that really means: geography, cost-effectiveness and technology. Let's take a closer look at each of these by drawing information from other sources:
Flexibility in a more flexible world
When the boundaries of countries are malleable, businesses that work across these boundaries have to be as well. CSCMP's Supply Chain Quarterly recently spoke to Yemisi Bolumole, lead author of a study on governance in different regional "logistics hubs."
Bolumole told the source that economic development could be a "win-win" for companies and the public sector alike, also calling for a direct link between supply chains and powerful economic incentives to support the future, as opposed to tax-based ones.
"What we are hoping is that economic agencies can redefine what economic development means in a way that allows them to align what they do not, only with the firms that are represented, but also with the distinct supply chain assets that they possess," Bolumole said. "In other words, supply chain or logistics hubs become a major stimulant to economic development."
Saving money the smart way
While the above point did mention business efficiency, there's also the added benefits that could come from simply reorganizing the supply chain. This idea goes back at least as far as 2011, when an excerpt from the book Supply Chain Secrets appeared in a different Supply Chain Quarterly piece.
This source said that succeeding with supply chain design comes in part from taking an accurate look at the entire supply network's performance. As nearshoring or relocating becomes more attractive, businesses may also consider why they've been tempted to outsource jobs in the past to begin with: the book suggested that it could come from a sense that a certain aspect of the company isn't essential or an investment isn't worth direct action. In addition, true financial benefit can come when the supply chain gets simpler and has fewer moving parts to worry about.
Many technologies, one goal
Finally, it's worth noting that many of the new tech offerings targeting the logistics sector have the same goal: These services are meant to increase efficiency and save costs, even if they all come at it from different angles, such as automation, shipment tracking and warehouse management.
With data at the cornerstone of so many innovations, the increasing ways to utilize it will undoubtedly encourage businesses to be better about changing their existing processes. All of these factors are important different elements of the supply-focused future.