According to a study commissioned by Shopify, most brands will keep running into supply chain concerns in 2022.
To address concerns around supply-chain disruptions and ensure a stable supply chain, companies can consider shortening the chain by going local. While the solution comes with its own set of challenges, localising the supply chain can help businesses lessen disruptions. Consumers in certain markets prefer to buy domestically manufactured products even at a premium.
To start with, brands should look into the feasibility of localisation. The factors to consider in a feasibility study should include the costs and infrastructural needs like manufacturing facilities or raw material sourcing. Apart from these factors, brands should also determine whether they can continue sticking to the existing price point.
If the brand does decide to go ahead, it must execute the process of localising the supply chain step-by-step. They should always keep the consumers in the loop while also informing them about the incidental benefits of localisation like reduced carbon emissions.
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