The pandemic continues to cause stress and frustrations to businesses and customers who have dealt with delays and shortages. According to Shopify’s Future of Commerce report for 2022 - a study conducted by Forrester Consulting found that shipping delays, shipping costs, and manufacturing delays are the top supply chain concerns brands should expect to face this year.
The global supply chain disruptions have been an ongoing problem for businesses since the start of the pandemic - leading to shortages, increased import costs, and delays interrupting the flow of goods. Experts anticipate these supply issues will continue for the next few years and encourage businesses to be proactive and adjust their business strategies to accommodate.
“Experts anticipate these supply issues will continue for the next few years and encourage businesses to be proactive and adjust their business strategies to accommodate.”
Amid the disruptions, businesses are renewing their interest in bringing their supply chain practices closer to home - also known as “reshoring” or “onshoring”. A similar concept is “localization” which allows businesses to bring points in the supply chain closer, such as localized distribution centers. This solution is not a one-size-fits-all approach but if it’s right for your business, it can reduce supply chain disruptions and add stability to business operations.
It’s unlikely that businesses will be able to move their supply chain practices all at once as it can be a complex project that requires multiple stages and considerations. Here are some steps your business can take to localize your supply chain:
- Do your research
- Start small and go slow
- Communicate your changes to customers
To learn more on how localizing your supply chain can help your business, check out Shopify’s blog.
