The supply chain today is becoming globalized where multiple parties are involved in the manufacturing value chain from order fulfillment to delivery. Companies pursuing growth will have to strategize to deal with this emerging global trend and complexity that promises quicker lead times, increased options and expanded product portfolios.
According to insights from McKinsey, by the year 2020, 80% of the goods (compared to 20% today) will be manufactured in a country different from where they are consumed. However, the US-China trade war and protectionist stance adopted by some countries have impacted global the supply chain significantly. Multi-national companies are now diversifying and re-evaluating their sourcing and manufacturing strategies to mitigate the impact the tariffs have in their overall production and supply chain costs.