The true impact of on-shoring retail supply chains: a sensitivity analysis
3 minute read
Clearly, Covid-19 proved to be a huge shock to well established retail supply chain networks globally.
From the five key drivers that will characterise the future of retail supply chain networks (discussed in this article here); but this third article in the series focuses on one particular solution – on-shoring. Essentially, this means sourcing or relocating a retail business' production operations within its domestic borders.
As retailers prioritise building more resilient supply chains, the prospect of sourcing products from domestic economies (on-shoring) emerged as a strong theme for many. Our research revealed that some retailers had already begun to source more domestically as they looked at alternative strategies to mitigate the impact of supply chain disruption.
Furthermore, our research highlighted that other underlying motivations around the impact of Brexit, carbon reduction ambitions and consumer behavioural change combined to add further weight and, in some cases, urgency to this strategy.
Research methodology
As part of our research, we conducted a retailer survey that includes data from over 30 of the largest European retailers with a combined turnover of €600 billion. In-depth interviews were conducted to understand better the motivations, desire and ability for businesses to generate greater sourcing capabilities from their domestic markets.
Interviews were also conducted across a range of industry experts including financial services, government departments and industry trade bodies.
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