Auburn University’s Center for Supply Chain Innovation has undertaken a study Logistics 2030 on strategic sourcing and inbound logistics. The report covers continued disruptions in supply chains, tonnage deficiency and shortage of equipment forcing the companies to re-prioritize supply chain management systems.
The team of experts have concluded that the majority of companies are rearranging their priorities for the inbound supply chain operations towards ensuring uninterrupted supplies.
Until recently companies pursued the policy of single sourcing, which allowed them to reduce product variation, speed up contracting processes and lower administrative costs. Now, 67% of respondents state sourcing flexibility, which implies easy and quick switch from one supplier to another, as one of the most important areas of focus.
All the elements of the logistics system are currently influenced by capacity constraints, system congestion, decline in the quality of service, soaring prices and shortage of labour. “Logistics 2030” survey respondents do not expect that these problems will be resolved anytime soon.
At the same time, 80% of respondents believe that the number of domestic suppliers will increase in the next ten years.