SupplyChain Magazine January 2022

FOREWORD What will the shifting sands of supply hold for 2022 ?

Ongoing supply problems are causing businesses to re-evaluate established ways of operating , as uncertainty and changing customer behaviours hit home

“ Consumers are not hesitating to shop elsewhere if they can ’ t find the products they want . This makes fulfillment critical if brand loyalty is not to be eroded ”

MCKINSEY RETAIL STUDY

Covid . The Suez blockage . Labour shortages . Little wonder a recent Gartner survey on the changing role of chief supply chain officers describes CSCOs as feeling “ battered ” and “ harrowed ” by events of the past two years .

In response , many companies are looking to ‘ reshore ’ their supply chains , by moving manufacturing bases from Asia , South America and Eastern Europe back home . Samsung is among them , announcing plans for a new US $ 17bn microchip plant in Texas , as a way to overcome the global shortage of microprocessors .

How customers think and behave is also changing . Customer loyalty is no longer driven by brand value and product quality . Now , it ’ s all about availability . This is why fashion brand Gap invested heavily in hugely expensive air freight to service pre-Christmas demand . It was either that , or risk an erosion of loyalty .

If things continue in this vein the supply landscape might well look quite different by the time we ’ re ushering in 2023 .

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SupplyChain Magazine January 2022 | Page 5

FOREWORD What will the shifting sands of supply hold for 2022 ?

“ Consumers are not hesitating to shop elsewhere if they can ’ t find the products they want . This makes fulfillment critical if brand loyalty is not to be eroded ”