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Supply Chain Leaders Reconfigure Networks

by Mary Rooney | Oct 03, 2022

Companies are adapting their distribution networks, as well as sourcing and manufacturing strategies, to fit the new global supply chain environment, a recent Gartner survey reveals. 

The Gartner survey gathered input from 403 supply chain leaders during Q2 2022 to understand how factors including supply constraints, inflation, sustainability goals and national industrial policies have impacted their global supply chain strategies and network over the last two years.

Many are making changes to the scope and scale of their supply chain networks. 

  • 74% of respondents made changes to the size and number of locations.
  • 51% of respondents increased the number of locations.
  • 23% of respondents reduced the number of locations.

The resulting networks span a variety of operating models. 

  • 28% of respondents now describe their network as a hybrid regional model—a combination of local or regional elements in a global supply chain network.
  • 23% of respondents now have global models with regional final assembly.
  • 22% of respondents now have local-for-local networks.

Shifts are also happening for companies whose supply chains have a China presence, as well as those operating in Asia-Pacific (APAC) markets.

  • 95% of respondents are evaluating or executing changes to their China sourcing and manufacturing strategy; 55% of those have already acted on their plans.
  • 60% of respondents based in APAC view their home region not only as a supply base but as an end market.
  • 40% of global respondents consider APAC a supply base as well as an end market.
Read more about the Gartner Survey.

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