design , while diversifying their sources of supply . This approach to supply chain diversity will ensure that organisations have multiple options and can determine the right balance between near-shore and off-shore manufacturing . For example , by having a carefully planned ‘ portfolio ’ of suppliers and resources , companies can spread their risk , mitigating the impact that social , political and geographic incidents could have on raw material price and availability .”
Increased competition and profits More choice within the supply chain also means a greater opportunity to analyse cost , location , and the range of goods available when you come to selecting the ones that works best . A diverse supply chain can also encourage competition between suppliers to drive down prices . A study by the Hackett Group found that those with a diverse supply chain had lower overall operating costs and spent 20 % less on buying . This of course leads to a higher ROI , by being able to offer more competitive prices , improving quality of service , and leading to satisfied customers . At a local level , it also increases spend and promotes employment by boosting economies .
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