BOSTON, June 23 /PRNewswire/ -- AMR Research today released a study
that found the United States and China are the regions that present the
most supply chain risk for manufacturers. The United States was the top
geography cited for supply chain risk at 35%, with China at 28%, and the
Middle East and Africa at 12%.
In addition to geographies with the highest risk, the report identified
rising transportation costs (51%), volatile commodity prices (43%), and
weakening consumer spending (37%) as top supply chain concerns.
In the wake of ever-increasing supply chain volatility, companies have
begun seeking a more balanced portfolio by moving to new regions, namely
other Asian-Pacific countries, Eastern Europe, and near-shore countries.
Survey respondents indicated that despite rising transportation costs,
an aging logistics infrastructure, and a softening economy, many companies
are still sourcing and manufacturing in the U.S.
Keeping manufacturing close to home allows companies better visibility
into their supply chains and increased oversight into day-to-day
operations. 34% of companies are planning to near-shore their sourcing and
manufacturing due to increasing cost-competitiveness, while 15% indicated
lessened supply chain risk due to proximity to market as their primary
reason to near-shore.
"Globalization is coming home partly because so much risk is associated
with spreading the supply network around the world," explained Noha Tohamy,
research director at AMR Research.
But for manufacturers selling products in the U.S., the lure of China
still exists. Despite significant risks, like product quality issues and
political unrest, China still makes sense because of cost advantages (49%
of respondents that plan to source from China cite lower labor costs as
their primary reason) and reach to vast consumer markets.
To further mitigate risk, companies have begun building better IT-based
supply chain visibility (42%), employing multisourcing strategies (27%),
and building performance-based collaborative relationships with suppliers
(44%).
For more information about this report, please visit
http://www.amrresearch.com or call (617) 542-6600.
About AMR Research:
Bold Ideas. Compelling Research. Pragmatic Advice. AMR Research is the
No. 1 research firm focused on the intersection of business processes with
value chain and enterprise technologies. Founded in 1986, AMR Research
provides subscription advisory services and peer networking opportunities
to operations and IT executives in the consumer products, life sciences,
manufacturing, and retail sectors. To learn more about our research and
services, visit http://www.amrresearch.com.
Press Contact:
Kevin Reilly
kreilly@amrresearch.com
617-350-1745
SOURCE AMR Research
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Related links:
http://www.amrresearch.com
CONTACT:
Kevin Reilly of AMR Research,
+1-617-350-1745, kreilly@amrresearch.com
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