If the COVID-19 pandemic has largely affected our way of life, it has also put globalization, as we previously knew it, back at the heart of the debate.
The recognition of the vulnerability of supply chains has given impetus to a reflection on the world production organization, or rather on its reorganization. These discussions have been largely intensified by a turbulent global environment, characterized by rising geopolitical tensions, risks of supply chain disruption and now by inflation and potential recession.
As a direct result of this recent turmoil, businesses are questioning their supply chains, and a new mindset is developing from lowest-cost suppliers to higher supply chain resiliency; from globalization to sourcing diversification. Is this the end of globalization? Not quite, since a study by Allianz Research states that only 15% of companies plan to reshore their production. Nevertheless, relocation trends must be considered in its diversity, with 30% of companies favoring a nearshoring strategy (relocating their production closer to their market).
This is all the truer given that public authorities, starting with the US treasury secretary, have recently been encouraging companies to favor allied countries for the installation of production capacities: a phenomenon known as "friend-shoring".
Behind these movements is the ambition for companies to secure their supply chain, particularly by diversifying their sourcing, and ultimately to control logistical costs in the face of potential disruptions. A genuine challenge for businesses that will certainly call upon the expertise of logistics players. Our insights are based on our internal study.