Per Gartner, one-third of companies have or plan to move their supply chains out of China by 2023. Alternatives include reshoring to the U.S., Vietnam, India and Mexico.
There are reasons to change, like diversification, aging workers, tariffs and geopolitics, but the decision is complex and differs by company and product. Risks/costs need to be explored and multi-tier supply chain visibility, including second/third tier suppliers, is a must. For example, Mexican shipping costs/tariffs are lower, but Mexico is an expensive country to operate in and total landed costs need to be explored. Developing countries like Vietnam are an option, but no country is risk free and each brings unique risks and challenges. China is called “the world’s factory” for a reason. They have lots of skilled workers and a strong/technologically sophisticated industrial ecosystem with multiple suppliers to support specific industries.
Shine a light on your supply chain alternatives with MOSIMTEC simulation modeling. Each option can be mapped, simulated, optimized and stress tested to see what works, what doesn’t, and how to do it faster, cheaper and more efficiently. Changing your supply chain is a big deal so you want to get it right.
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To learn more, visit: https://www.sdcexec.com/sourcing-procurement/article/21159902/resilinc-what-will-it-really-take-to-move-supply-chains-out-of-china-it-starts-with-mapping