By Jeff Jorge and Erich Bergen, Baker Tilly Digital
The pandemic has shone a harsh spotlight on the US supply chain, particularly on those businesses that, over the years, moved offshore production to other countries. From product shortages to capacity constraints, the coronavirus pandemic has impacted supply chains non-stop, affecting everything from toilet paper to semiconductors and bringing certain industries to a standstill.
As a result, US manufacturers are re-evaluating their supply chain and business models and are considering the notion of nearshoring or onshoring their operations. Businesses are looking to data and integrated technology to help create a layer of insulation, which includes using things like nearshoring or regionalization, to minimize that risk and help lay a foundation for their business to grow.
So, what can businesses do to keep their supply chain from buckling under the pressure?
Be data-driven: Companies considering nearshoring must understand the data that moves their business. Nearshoring focuses on providing value to the client by offering a higher return on investment, rather than providing the lowest possible costs.
Be flexible: Continuously improve forecast accuracy, collaboration, and end-to-end visibility with flexible and resilient supply chain planning, manufacturing and execution. This allows manufacturers the option to change suppliers as needed or as the market indicates.
Be efficient: Drive process efficiency while managing costs with integrated and advanced technologies that help you adapt to changing conditions.
Be a planner: Optimize inventory levels and use of working capital to reduce costs and drive higher customer satisfaction. Gain full visibility and control of product flow across your organization and global supply chains.
Be automated: Improve coordination across channels and fulfillment sources, facilitate rapid order execution, and integrate the customer experience for excellent service and improved margins.
Be optimized: Maximize order fulfillment and minimize logistics costs while adapting to business disruptions and changes in your supply chain.
Understanding the data is essential to building a confident, flexible business model. As the pandemic continues to confound the global economy and the path of the virus remains unclear, supply chain disruptions will continue to evolve. As a result, companies are turning to new levers to create a resilient supply chain—levers such as nearshoring, technology, and new business models.
Leaning into your data and reviewing your operations, risks and opportunities can help you decipher if nearshoring is right for you. For more information on this topic, read our full article. Oracle Cloud Supply Chain & Manufacturing (SCM) can give you the insight you need to make such critical decisions. The single, connected suite pulls together supply chain data from designs in product lifecycle management (PLM) through planning, inventory, order management, logistics and more—while AI, machine learning, and advanced analytics help you understand and act on that data.