Our partners at BaySource Global recently wrote an article about the top supply chain concerns for this year, specifically for companies who are sourcing in Asia.
Changes in Consumer Demand
Stay-at-home orders created a big shift in consumer preferences. This resulted in significant spikes in global demand for PPE and specific categories of consumer goods such as:
- Fitness equipment
- Home Improvement; Lawn and Garden
- DIY and crafts
- Outdoor recreation products
- Cooking products
- Vehicles (non-auto) RVs, off-road vehicles, golf carts
- Auto aftermarket
This spike in demand created a shortage of shipping containers, a shortage so massive that freight companies are still playing catch up.
Fragility of Global Supply Chains
If we’ve learned anything about the past year, it’s the fragility of global supply chains. Between the pandemic, and non-pandemic related global events (such as the blockage of the Suez Canal), supply-chain decision makers are now painfully aware of the importance of mitigating risk.
BaySource Global predicts that this will require new analytics, software, intense forecast models, and the diversification of supplier networks. “Implementing strategies to diversify supplier networks mitigates the inherent risk of relying too heavily on one manufacturing source such as China. There are alternatives to Chinese manufacturing in South East Asia each country with unique individual benefits and advantages.”
Learn more by reading the full article here.